DMart’s parent company, Avenue Supermarts, on Saturday reported an 18.3% year-on-year increase in consolidated net profit for the third quarter of FY26 to Rs 856 crore. The earnings growth came even as the retailer posted its slowest like-for-like or same-store sales growth in Q3, at 5.6%. Consolidated revenue rose 13.3% year-on-year to Rs 18,101 crore, with growth partially impacted by deflation in staple categories, the company said.
Record Footfalls Amid Muted Same-Store Growth
Despite these challenges, total bill cuts — a key indicator of footfalls — rose to 103 million, the highest level in five quarters. Analysts attributed the increase to festive-season shopping during the period, though they flagged the slowdown in same-store sales growth (SSG) as a concern.
Consolidated earnings before interest, tax, depreciation and amortisation (Ebitda) increased 20.2% year-on-year to Rs 1,463 crore during the quarter, compared with Rs 1,217 crore a year earlier. The growth was driven by operating efficiencies and value-led execution. As a result, consolidated Ebitda margin expanded to 8.1% in Q3, up from 7.6% in the corresponding period last year.
A Billionaire CEO Departs
The firm also said CEO-designate Anshul Asawa would take over as CEO from February 1 and would serve as MD for a period of three years, starting April 1. Incumbent MD & CEO Neville Noronha would step down after his tenure concluded on January 31, the firm added.
The management change was first announced last year, after Noronha indicated that he did not wish to continue in the role beyond the end of his term in January. Noronha continues to hold close to a 2% stake in Avenue Supermarts and has an estimated net worth of Rs 6,570 crore, according to Hurun’s Top 10 list of rich professional managers. He ranks fourth on the list, behind Jayshree Ullal, Arista Networks CEO; Microsoft CEO Satya Nadella; and Google and Alphabet CEO Sundar Pichai. Noronha is also the richest India-based CEO, according to Hurun.
On a standalone basis, DMart’s net profit rose 17.6% year-on-year to Rs 923 crore in Q3. Revenue grew 13.2% year-on-year to Rs 17,613 crore, while Ebitda increased 19.9% to Rs 1,481 crore during the quarter. Standalone Ebitda margin improved to 8.4%, compared with 7.9% a year ago. The company added 10 stores in the December quarter, taking its total store count to 442 at the end of Q3.