DMart Q3 results preview: Radhakishan Damani-backed Avenue Supermarts will report its December quarter (Q3FY26) earnings on Saturday, January 10. The company is expected to report a softer set of numbers, with a modest rise in top and bottom-line, but margins may see a contraction.
Last Friday (January 2), DMart disclosed its Q3 business updates, wherein it reported a standalone revenue from operations of ₹17,612.62 crore for Q3FY26, reflecting a 13.15% increase from ₹15,565.23 crore in the same quarter of the previous fiscal year.
During the quarter, DMart added 10 new stores, taking its total store count to 442 (including one store at Sanpada, Navi Mumbai, Maharashtra, which is currently closed to customers due to reconstruction), according to the regulatory filing.
For Q2FY26, the company's net profits rose 3.9% to ₹684.8 crore, while revenue from operations jumped 15.4% to ₹16,676.3 crore.
DMart Q3 results preview
According to Seema Srivastava, Senior Research Analyst at SMC Global Securities, DMart's results are expected to be flat to positive, in line with the recent business update of the company, wherein standalone revenue for Q3 FY26 grew nearly 13% YoY to ₹17,613 crore, reflecting sustained demand for essential retail and steady consumer spending across food and non-food categories.
However, operating margins are likely to remain under pressure due to elevated operating and input costs.
Profitability trends, as revenue growth has outpaced net profit expansion in recent quarters, indicating margin compression driven by cost inflation and competitive pricing intensity, will be the key thing to watch, said Srivastava.
Any improvement or deterioration in gross and EBITDA margins will also be closely monitored.
Additionally, management commentary on store addition momentum, cost control measures, supply-chain efficiencies, and expansion into tier-II and tier-III cities will be critical in assessing the sustainability of growth and margin recovery over the medium to long term, Srivastava said.
According to brokerage firm Motilal Oswal Financial Services, DMart's consolidated revenue may grow nearly 13% YoY for Q3FY26, largely led by store additions, while PAT may grow modestly by nearly 5% YoY.
The brokerage firm expects DMart's EBITDA margin to contract nearly 35 bps YoY to 7.3% on continued higher cost of retailing and lower gross margin.
On a standalone basis, Nuvama Wealth Management expects DMart's revenue to rise 13.20% YoY and core PAT to grow by 6% YoY. EBITDA margin, as per the brokerage firm, may slip to 7.50% in Q3FY26 from 7.90% in Q3FY25.
"We expect DMart to report a gross margin of 14%, assuming a stable GM&A (general merchandise and apparel) mix but increasing competition, including the growing quick commerce segment, to have a negative impact on the EBITDA margins along with a slower growth," said Nuvama Wealth Management.
DMart share price closed 0.43% higher at ₹3,805.10 on the BSE on Friday, January 9, amid the stock market selloff. On a weekly scale, the stock rose over 2% for the week ended January 9, snapping its seven-week losing streak.
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