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DMart Delivers Q3 Profit Beat and Margin Gains as Board Clears CEO Succession

The results suggest the retailer’s low‑cost model is holding up despite deflation in staples, with quick‑commerce pressure yet to dent profitability.

Overview

  • Avenue Supermarts reported Q3 FY26 standalone net profit of Rs 923 crore, up 17.6% year on year, on revenue of Rs 17,613 crore.
  • Standalone EBITDA rose 19.9% to Rs 1,481 crore as EBITDA margin expanded to 8.4% from 7.9% a year earlier.
  • On a consolidated basis, revenue reached Rs 18,101 crore and net profit was about Rs 856 crore, both higher year on year.
  • Management said revenue growth was partly affected by deflation in staples, while stores older than two years grew 5.6% in the quarter.
  • The board approved CEO‑designate Anshul Asawa as CEO and MD effective April 1, 2026, with Ignatius Navil Noronha to step down on January 31, 2026; broker reactions were mixed, with CLSA trimming its target to Rs 6,105 but keeping a high‑conviction outperform view.