DMART.NS Stock Today: January 12 Q3 profit +18%, EBITDA margin 8.1%
DMart Q3 results are in focus as Avenue Supermarts (DMART.NS) reported net profit up about 18% year on year, EBITDA margin at 8.1%, and revenue growth near 13% to ₹18,101 crore. The January 12 session will test how the market values the margin gains, a 442-store footprint, and the CEO transition to Anshul Asawa from February 1. At the last close on January 9, DMart share price was ₹3,646.3, below key moving averages. We break down the numbers, drivers, and what to watch in India.
Q3 performance at a glance
Net profit rose to about ₹856 crore, up 18% year on year, with revenue at ₹18,101 crore, up roughly 13%. Operating performance improved as EBITDA grew near 20% and margin expanded to 8.1%, reflecting better cost control and steady footfall in value retail. These headline metrics point to healthy execution despite lower inflation in staples. Source: Upstox.
Management emphasis on efficiency, improved mix, and maturing stores likely supported gross and operating margins, even as staple deflation moderated ticket sizes. Strong inventory turns and low leverage helped protect profitability. We will watch private label penetration, shrink reduction, and supply-chain productivity through FY26 to see if the 8% plus margin holds while maintaining competitive pricing across food and general merchandise.
Expansion and leadership transition
The chain now totals 442 stores across key states, giving solid reach in urban and suburban catchments. New stores typically scale over 18 to 24 months, lifting sales density and contribution margin. A steady pace of openings, backed by disciplined site selection and tight costs, remains central to Avenue Supermarts earnings resilience and long-term market share gains in India’s value retail segment.
From February 1, Anshul Asawa will take charge as CEO, signalling continuity in the value-first playbook. Near-term focus should stay on everyday low prices, mix optimization, and DMart Ready where unit economics improve with scale. Leadership stability matters as the company balances expansion, margin protection, and customer value while executing in a competitive grocery and general merchandise landscape.
Share price setup and key levels
DMart share price closed at ₹3,646.3 on January 9, below the 50-DMA ₹3,920.07 and 200-DMA ₹4,200.56. RSI at 47.9 is neutral, while ADX at 33.15 signals a strong trend. MACD is negative but improving. We will watch if Q3 numbers catalyse a move back toward the 50-DMA, or if the stock consolidates near current zones.
Bollinger lower band sits near ₹3,669.7, with ATR around ₹78 suggesting typical daily swings of that size. Immediate support lies near ₹3,635–₹3,670, with resistance around ₹3,780–₹3,900. Technicals are guides, not guarantees. Position sizing and stop-loss discipline matter, especially into results-driven sessions with higher participation and quick sentiment shifts.
Valuation and outlook for FY26
Valuation is premium with P/E 91.18, EV/EBITDA 55.34, and P/S 3.87. Balance sheet quality remains a plus: debt-to-equity 0.07, current ratio 2.49, and interest coverage 77.9. Sustaining 8% plus EBITDA margin and double-digit revenue growth is key to justify multiples. Headline Q3 metrics are consistent with this path. Source: CNBCTV18.
We are watching same-store growth, gross margin trend, private label mix, and store additions through FY26. Input inflation is a swing factor for pricing power and volumes. Competitive intensity from modern trade and quick commerce also matters. Clear guidance on capex cadence and DMart Ready unit economics will shape the Avenue Supermarts earnings trajectory.
Final Thoughts
DMart Q3 results show healthy execution: profit up about 18%, EBITDA margin at 8.1%, and revenue growth near 13% despite a soft staples backdrop. The footprint at 442 stores gives a solid growth runway, while the CEO transition to Anshul Asawa suggests strategic continuity. Valuation remains rich, so the market will demand sustained margin delivery and steady openings. Into the January 12 session, we would watch reaction around ₹3,635–₹3,900, commentary on mix and costs, and any pace updates on new stores. For investors, the focus is simple: can margins hold near 8% while growing volumes and protecting everyday value.
FAQs
What are the key highlights of DMart Q3 results?
Net profit rose about 18% year on year to roughly ₹856 crore, revenue increased to ₹18,101 crore, and EBITDA margin expanded to 8.1%. Operating performance improved despite staple deflation, helped by efficiency and scale. Store count touched 442, setting up a continued growth runway into FY26, subject to cost and mix discipline.
How did the DMart EBITDA margin change this quarter?
EBITDA margin expanded to 8.1%, up year on year. The improvement likely reflects operating discipline, maturing stores, and better mix across food and general merchandise. Holding margins near 8% while keeping prices sharp will be key, given competitive intensity and potential changes in input inflation through FY26.
What is the near-term view on DMart share price after results?
At the January 9 close, the stock was ₹3,646.3, below the 50-DMA and 200-DMA. RSI sits neutral near 48, and ADX indicates a strong trend. Key zones are ₹3,635–₹3,670 support and ₹3,780–₹3,900 resistance. Watch the January 12 session for a reaction to margins, commentary, and store expansion plans.
What should investors watch in Avenue Supermarts earnings for FY26?
Track same-store growth, gross margin trajectory, private label mix, and store addition pace. Monitor input inflation for pricing and volume impacts. Updates on DMart Ready economics, capex cadence, and leadership transition execution will shape operating leverage and the sustainability of the 8% plus EBITDA margin.
Is DMart’s valuation expensive after Q3?
Valuation is premium with P/E near 91, EV/EBITDA about 55, and P/S around 3.9. The balance sheet is strong with low leverage and high coverage. Sustained 8% plus margins and double-digit growth are needed to justify multiples. Execution and cost control will be critical for re-rating potential.
Disclaimer:
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.
