DMart Share Price Slips After Q3FY25 Business Update Despite Reporting 13% Revenue Growth

Shares of Avenue Supermarts, which operates the DMart retail chain, fell in early trade after the company released its provisional business update for the December 2025 quarter. 

The stock slipped around 1.5% to its day’s low of ₹3,666 on the BSE, even as the company reported double-digit growth in revenue. The market reaction reflected investor caution around near-term performance rather than concerns about the company’s long-term business model.

Q3FY26 Revenue Shows Healthy Growth

For the third quarter ended December 31, 2025, DMart reported a 13% year-on-year rise in standalone revenue from operations. Revenue increased to ₹17,613 crore compared with ₹15,565 crore in the same quarter last year. The company clarified that these numbers are provisional and may change slightly when the final quarterly results are announced.

During the quarter, DMart’s total store count stood at 442, highlighting its continued expansion across India. Store additions remain a key driver of revenue growth for the value-focused retailer.

Avenue Supermarts Share Price Performance Reflects Short-Term Concerns

Despite steady revenue growth, DMart’s shares moved lower after the update. Investors appeared to factor in margin pressures and recent trends in profitability. On the previous trading session, the stock had closed flat at ₹3,721, suggesting limited momentum ahead of the Q3 update.

Review of Recent Quarterly Performance

Looking at earlier quarters provides useful context. In the September 2025 quarter (Q2FY26), DMart reported a 4% year-on-year increase in net profit at ₹685 crore. Revenue from operations rose 15% year-on-year to ₹16,676 crore during that period.

However, on a sequential basis, profit after tax declined by 11% compared with ₹773 crore reported in Q1FY26. Revenue growth was also modest quarter-on-quarter, rising 2% from ₹16,360 crore in the April–June quarter. These trends suggest that while demand remains stable, profitability growth has moderated in recent quarters.

Business Strengths Remain Intact

DMart continues to benefit from its strong value pricing, high inventory turnover, and focus on essential consumer goods. Its consistent store expansion supports revenue growth, but rising operating costs and competitive pressures remain areas to watch.

Read more: US–Venezuela Tensions and Crude Oil Prices: Why India Faces Limited Impact.

Conclusion

DMart’s Q3FY26 provisional update shows steady revenue growth, supported by store expansion and resilient consumer demand. However, the short-term dip in share price indicates investor sensitivity to profitability trends and margin pressures. While the long-term business fundamentals remain stable, near-term stock performance may continue to track earnings clarity and cost management.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.