DMart Q3 results preview: Quick commerce, weak SSSG may weigh on margins; check details

DMart Q3 results: Radhakishan Damani-backed Avenue Supermarts Ltd, the parent company of retail chain store operator DMart, is set to announce its consolidated and standalone earnings for the quarter and nine-months ended on December 31, 2025 on Saturday, January 10, 2026 after its board meeting scheduled for the given date.

According to the provision update for the December 2025 quarter, DMART's revenue stood at Rs 17,612.6 crore, up 13.2 per cent on a year-on-year (YoY) and 8.6 per cent quarter-on-quarter (QoQ) in Q3FY26. Brokerage firms are mostly expecting flat Ebitda margin for the company, with competitive pressure ad weak same store sales growth (SSSG) to weigh on bottomline.

According to the analysts, DMART may report a muted growth in Ebitda on both yearly and sequential basis. Net profit is likely to remain under pressure, reporting a single digit growth, aided by operating leverage despite margin pressures.

Nuvama Institutional Equities is expecting Avenue Supermart's standalone Ebitda to come in at Rs 1,315.2 crore, up 6 per cent YoY and 7 per cent QoQ. Core PAT may come in at Rs 831.5 crore up 6 per cent YoY and 11 per cent QoQ. Nuvama currently has a 'hold' rating on it with a target price of Rs 4,580.

"Avenue supermarts have reported a soft growth of 13 per cent in the current quarter. We expect DMart to report a gross margin of 14 per cent, assuming stable GM&A mix but increasing competition including growing quick commerce segment to have a negative impact on the EBITDA margins along with a slower growth," said Nuvama.

Systematix Institutional Equities said that DMART clocked an Ebitda of 1,338.6 crore, up 8.4 per cent YoY and 8.8 per cent QoQ, with Ebitda margins remaining flat sequentially at 7.6 per cent. Adjust PAT may come in at Rs 816.9 crore, up 4.4 per cent YoY and 9.6 per cent QoQ.

Growth impacted by intense competition from Qcomm, deflation in some product categories & dilution and cannibalization due to rapid store expansion as new stores take time to mature, it said. Systematix currently has a 'hold' rating on DMart with a target price 4,055.

Centrum Broking is penciling in DMart's Ebitda at Rs 1,356.2 crore, up 9.8 per cent YoY and 10.3 per cent QoQ, with Ebitda margin coming at 7.7 per cent for the quarter ended on December 31, 2025. Net profit is likely to come in at Rs 841.1 crore, up 7.2 per cent YoY but 12.7 per cent QoQ.

The sales growth was impacted by higher deflation in staples and non-food products, increased competitive intensity and lower MRP due to GST rate cut. As per our estimates, revenue per store declined by 1.1 per cent YoY. It added 10 stores during the quarter taking the total store count to 442 stores. EBITDA margins to contract by 24 bps YoY to 7.7 per cent owing, said Centrum.

Antique Stock Broking has pegged Avenue Supermart's EBitda at Rs 1,262.9 crore, up 2.2 per cent YoY and 2.6 per cent QoQ for the October-December 2025 period. Net profit may come in at Rs 760.2 crore, down 3.1 per cent YoY and up 1.8 per cent QoQ. It expects DMart’s Ebitda margin to contract 70 bps YoY owing to subdued SSSG and continued pressure in GM&A segment.

Ahead of its earnings, shares of DMART settled at Rs 3,812 on Friday, rising 0.61 per cent. The total market capitalization of the company stood close to Rs 2.5 lakh crore. The stock has dropped more than 22 per cent from its 52-week high at Rs 4,916.30, hit in September 2025.