Brands
Dmart rings up a merry quarter as profits check out stronger
MUMBAI: If retail had a festival season winner, Dmart would be standing at the billing counter with a wide grin. Avenue Supermarts Limited, which operates the Dmart chain, reported a solid performance for the quarter ended 31 December 2025, buoyed by festive and wedding season demand that kept trolleys full and cash registers busy.
For Q3 FY26, revenue from operations rose to Rs 17,612.62 crore, up from Rs 15,565.23 crore in the same quarter last year. Total income for the quarter stood at Rs 17,642.89 crore, reflecting the retailer’s ability to convert seasonal footfalls into consistent topline growth.
Profit before tax for the quarter came in at Rs 1,236.32 crore, compared with Rs 1,052.60 crore a year ago. Net profit after tax increased to Rs 923.05 crore, marking a clear improvement over the Rs 784.65 crore posted in Q3 FY25. Earnings per share followed suit, with basic EPS at Rs 14.19 for the quarter, up from Rs 2.06 last year.
The nine-month story was equally telling. For the period ended December 2025, revenue from operations reached Rs 49,763.53 crore, compared with RTs 43,327.42 crore in the corresponding period last year. Net profit after tax for the nine months rose to Rs 2,499.33 crore from Rs 2,307.47 crore, underscoring steady execution in a competitive retail environment.
Operational discipline remained central to the performance. Employee benefit expenses for the quarter stood at Rs 350.41 crore, while depreciation and amortisation came in at Rs 240.93 crore. Operating margin improved to 8.41 per cent in Q3 FY26, up from 7.58 per cent a year earlier, while net profit margin expanded to 5.24 per cent from 4.60 per cent.
Festive demand played a starring role. Strong sales during Dussehra, Dhanteras and Diwali lifted volumes across categories, helping the retail segment account for over 83 per cent of total revenue during the quarter. Inventory turnover and trade receivables metrics also reflected tighter working capital management as the company scaled.
As of 31 December 2025, Avenue Supermarts continued to balance growth with financial prudence, maintaining a low debt profile and healthy coverage ratios. With expansion plans in place and consumption sentiment still favouring value-led retail, Dmart’s numbers suggest that, for now, its everyday low-price promise continues to ring true at the checkout.
Brands
Kwality Wall’s reports standalone losses following strategic HUL demerger
Ice cream major faces Rs 64 crore Ebitda loss amid commodity inflation and muted Q3 sales
MUMBAI: Kwality Wall’s (India) Limited (KWIL) has released its first set of financial results as a standalone entity, revealing a challenging start to its independent journey. Following its successful demerger from Hindustan Unilever Limited (HUL) on 1st December 2025 and its subsequent listing on 16th February 2026, the company is navigating a transition period marked by structural changes and high input costs.
For the quarter ended 31st December 2025, the company reported revenue of Rs 222 crores. Despite the revenue base, the bottom line was impacted by several factors, resulting in an Ebitda loss of Rs 64.2 crores. When calculated on a Pre-IND AS 116 basis, the Ebitda loss stood at Rs 83.8 crores.
Organic Sales Growth (OSG) declined by 6.5 per cent year-on-year during the quarter. Volume growth, however, saw a marginal increase of 1.2 per cent. The company reported a gross margin of 41.5 per cent. Additionally, exceptional expenses amounting to Rs 94 crores were recorded, primarily linked to non-recurring costs during the transition phase.
Performance across portfolios and channels was mixed. Within the impulse portfolio, brands such as Magnum and Cornetto recorded mid-single digit volume growth, indicating steady demand in on-the-go consumption. However, the in-home portfolio, which includes take-home packs, experienced muted consumption. The company is planning a relaunch of this category with improved offerings ahead of the 2026 season.
Quick commerce (Q-Com) continued to emerge as a strong growth driver, delivering robust double-digit growth during the quarter. Meanwhile, the company also expanded its physical distribution network by increasing the number of company-owned cabinets across markets.
Margin pressure during the quarter was driven by a combination of one-off factors and broader cost inflation. Gross margins were impacted by around 600 basis points due to trade investments made for stock liquidation. Additionally, cocoa price inflation contributed to another 400 basis points of pressure on margins.
Deputy managing director Chitrank Goel attributed the muted performance partly to prolonged monsoons and transitional challenges linked to the GST framework. Operating expenses also increased as the company invested in establishing its standalone supply chain, operational systems and corporate infrastructure following the demerger.
Looking ahead, the management remains focused on a volume-driven growth strategy. To restore profitability, the company has initiated a cost productivity programme aimed at reducing non-consumer-facing costs. It is also working on building regional manufacturing networks to optimise logistics expenses and improve operational efficiency.
The commodity outlook for the near term remains mixed. Dairy prices are expected to remain firm due to tight supply conditions and rising fodder costs. Sugar prices may also move higher following increases in the Minimum Selling Price (MSP). While cocoa prices have moderated recently, currency depreciation has offset some of the potential cost relief for the company.
