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Avenue Supermarts Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

10th Jan 26

Summary : Avenue Supermarts Limited reports strong Q3 and 9M FY26 financial results, appoints a new CEO and MD, and designates new senior management personnel.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Standalone Purchases of stock-in-trade Q3 FY26: ₹14,855.44 Cr.
  2. Consolidated Purchases of stock-in-trade Q3 FY26: ₹15,123.60 Cr.
  3. Standalone Employee benefits expense Q3 FY26: ₹350.41 Cr.
  4. Consolidated Employee benefits expense Q3 FY26: ₹397.75 Cr.
  5. Standalone Revenue from operations Q3 FY26: ₹17,612.62 Cr.
  6. Consolidated Revenue from operations Q3 FY26: ₹18,100.88 Cr.
  7. Standalone Revenue from operations 9M FY26: ₹49,763.53 Cr.
  8. Consolidated Revenue from operations 9M FY26: ₹51,136.88 Cr.
  9. Standalone Other equity (excluding revaluation reserves) as of Dec 31, 2025: ₹24,087.84 Cr.
  10. Consolidated Other equity (excluding revaluation reserves) as of Dec 31, 2025: ₹23,099.77 Cr.
  11. Both standalone and consolidated financial results are presented.
  12. Consolidated results include subsidiaries, some unaudited by independent auditors.

Corporate Overview

  1. Leadership roles across India, Asia, and Europe.
  2. Operations within India's FMCG and modern retail ecosystem.
  3. Evaluating the full impact of new consolidated labour codes.
  4. Primarily engaged in retail trades through offline channels.
  5. Also operates through online channels.
  6. Board expressed deep appreciation for outgoing MD & CEO's contributions.
  7. New CEO appointment signals forward-looking strategic direction.
  8. No separate reportable segment as per IND AS 108 - Operating Segments.

Risk Factors

  1. Evaluating impact of new labor codes.
  2. Auditor relies on unreviewed subsidiary financials.
  3. Intense competition in the retail market.
  4. Potential economic slowdown affecting consumer spending.

Key Drivers

  1. New CEO brings extensive retail experience.
  2. Strong revenue and profit growth continues.
  3. Focus on digitization and product innovation.
  4. Strategic appointments in key business areas.

Auditor’s Report

  1. Review report, not an audit opinion.
  2. No material misstatement found in standalone financial results.
  3. Consolidated results rely on unaudited financials of three subsidiaries.
  4. Subsidiary financials not reviewed by independent auditors.
  5. Management certified subsidiary financials as not material to Group.

Board Commentary

  1. Mr. Ignatius Navil Noronha ceases as MD & CEO on 31st January, 2026.
  2. Mr. Anshul Asawa appointed CEO from 1st February, 2026.
  3. Mr. Anshul Asawa appointed MD for 3 years from 1st April, 2026, subject to shareholder approval.
  4. New Senior Management Personnel designated due to reporting structure change.
  5. Impact of new consolidated labour legislations.
  6. New Labour Codes made effective from 21st November, 2025.
  7. Company evaluating impact of new labour codes.
  8. Commercial Papers allotted and listed on BSE Limited.

Corporate Governance

  1. Board decisions based on Nomination and Remuneration Committee recommendations.
  2. Audit Committee reviewed and recommended financial results.
  3. Auditor's reliance on management-certified subsidiary financials for consolidated results.

Management Discussion & Analysis

Future Strategy

  1. Appointment of new Chief Executive Officer and Managing Director.
  2. Designation of new Senior Management Personnel in key business areas.

Operational Focus Areas

  1. Focus on FMCG, General Merchandising, Apparels, and Investor Relations.

Performance Drivers

  1. New CEO's focus on consumer-centricity, commercial discipline, and execution.
  2. Leadership in digitization efforts and product innovations.

Risk Control Measures

  1. Company is evaluating impact of new labour codes.
  2. Estimated incremental liability for own employees is not material.
  3. Management views other impacts as unlikely to be material.

Critical Risks

  1. Potential impact of new Labour Codes.