A D-Mart store File photo
Business

D-Mart’s Q3 profit jumps 18% as margins improve and sales stay strong

The company benefited from tighter cost controls, better inventory management and a more favourable product mix, which helped offset higher staff costs and logistics expenses.

TNIE online desk

CHENNAI: Avenue Supermarts Ltd, which operates the D-Mart chain of value retail stores, reported a 17.6 percent year-on-year rise in standalone net profit to Rs 923 crore for the quarter ended December 31, 2025, as steady sales growth and better operating efficiency helped lift margins.

The company said in a regulatory filing on Saturday that revenue during the quarter grew at a healthy pace, driven by continued store additions, strong footfall and stable demand across key categories such as groceries, packaged foods and daily household essentials. The festive season and year-end shopping period also supported volumes, helping D-Mart maintain momentum despite a still cautious consumer environment in parts of the country.

Improved operating margins played a key role in boosting profitability. Avenue Supermarts benefited from tighter cost controls, better inventory management and a more favourable product mix, which helped offset higher staff costs and logistics expenses. The company has also been working on streamlining its supply chain and increasing private label penetration, both of which tend to support margins.

At the end of the quarter, D-Mart continued to expand its store network, reinforcing its presence in both large cities and smaller towns. Management has said that it remains focused on disciplined expansion, prioritising locations with strong demand potential and efficient logistics support.

The strong quarterly performance underlines D-Mart’s ability to grow profitably in a competitive retail landscape marked by rising online competition and shifting consumer behaviour. Analysts say the company’s value-driven pricing, efficient store operations and loyal customer base continue to give it an edge in India’s fast-moving consumer retail market.

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