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DMart Parent Avenue Supermarts Reports Q3 Profit Jump and Wider Margins as CEO Handover Nears

Broker calls reflect confidence in the low‑cost model despite softer like‑for‑like growth.

Overview

  • Consolidated revenue rose 13.3% year on year to Rs 18,101 crore, net profit increased about 18% to roughly Rs 856 crore, and EBITDA climbed 20% to Rs 1,463 crore with margin expanding to 8.1% from 7.6%.
  • Like‑for‑like sales growth slowed to 5.6%, the weakest in five quarters, with the highest bill cuts in five quarters, while sales per square foot improved sequentially.
  • Management cited deflation in staples as a partial drag on topline, even as operating efficiency and mix supported profitability.
  • The retailer added 10 stores in the quarter, taking the network to 442 locations as of Dec. 31, 2025.
  • Leadership changes were formalized with Ignatius Navil Noronha stepping down Jan. 31, 2026, and Anshul Asawa set to become CEO on Feb. 1 and MD from Apr. 1, subject to shareholder approval; analysts’ views were mixed, with CLSA trimming its target to Rs 6,105 but keeping a High‑Conviction Outperform and the Bloomberg consensus target at Rs 4,144 implying about 9% upside.