- DMart's Q3 FY26 revenue grew 13.2% YoY with food and non-food segments rising
- Operating margin increased to 8.4% with PAT up 17.6% YoY to Rs 9.2 billion
- Same store revenue growth for stores older than two years was 5.6% in Q3 FY26
DMart highlighted that revenue growth was partially impacted due to deflation in staples. During Q3 FY26, foods revenue saw a growth of 12% YoY, non-foods revenue grew 15.6% YoY and general merchandise and apparel revenue grew 13.9% YoY. Margin expansion was led by improved mix.
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Systematix Report
Avenue Supermarts Ltd.'s revenue growth stood at 13.2% YoY, operating margin at 8.4% leading to a 17.6% YoY PAT growth while PAT margin expanded 20 bps YoY to 5.2%.
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The Q3 FY26 same store revenue growth for two years and older stores was 5.6% (as per the company). Revenue per sq.ft declined 0.4% YoY to Rs 9,624 during Q3 FY26, while Ebitda per sq.ft grew 5.5% YoY to Rs 809.
Revenue per store declined 0.9% YoY to Rs 398 million while Ebitda per store grew 5% YoY to Rs 34 million in Q3 FY26.
Gross margin increased 50 bps YoY to 14.6% while Ebitda margin expanded 47bps YoY to 8.4%.
Other expenses declined 25 bps YoY while employee costs increased 28 bps YoY. Adjusted PAT grew 17.6% YoY to Rs 9.2 billion.
Systematix maintains Hold rating on DMart with a SOTP-based target price of Rs 4,134 (from Rs 4,055 earlier) based on 38x Dec 2027 EV/Ebitda (35% discount to LPA of 60x) for the offline business and 2x Dec 2027 EV/ sales for the online business.
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