Shares of Avenue Supermarts, which operates the retail chain DMart, are likely to be in focus on Monday, January 5, after the company released its December quarter (Q3FY26) business update post market hours.
In a regulatory filing, the company reported standalone revenue from operations of ₹17,612.62 crore for the December quarter, marking a 13.15 percent year-on-year growth from ₹15,565.23 crore in the corresponding quarter of the previous fiscal year.
During the quarter, Avenue Supermarts added 10 new stores, taking its total store count to 442 outlets. This includes one store at Sanpada, Navi Mumbai, which is currently closed to customers due to reconstruction, the company said.
Previous quarter performance
For the September quarter (Q2FY26), Avenue Supermarts reported a 3.85 percent YoY increase in consolidated net profit to ₹684.85 crore, while revenue from operations rose 15.45 percent YoY to ₹16,676.30 crore.
Following the Q2 results, brokerage commentary on the stock remained mixed, reflecting near-term margin pressures and ongoing expansion-related costs.
Store expansion and business outlook
The company continues to focus on store-led growth, with a steady pace of additions and long-term visibility on expansion. Market observers note that large-format retail chains often experience muted free cash flow during periods of aggressive store rollout, a phase DMart is currently navigating.
Despite the rise of quick commerce platforms, physical retail is expected to continue playing a significant role in India’s consumption story, particularly outside dense urban clusters.
Private-label push
Avenue Supermarts is also expanding its private-label portfolio, offering products priced 40–50 percent lower than branded alternatives, and in some categories at substantially deeper discounts. This strategy is aimed at improving value perception among customers while strengthening margins over the long term.
Disclaimer
This article is for informational purposes only and does not constitute investment advice, a recommendation, or a solicitation to buy or sell any securities. Readers are advised to consult their financial advisors before making investment decisions.
