Avenue Supermarts (DMART) reported strong profitability in 3QFY26, with gross margins expanding due to GST reductions and a favorable category mix. EBITDA margins also improved, driven by stable retailing costs. While revenue growth moderated to 13% year-on-year, this was supported by a 14% increase in store area and 5.6% like-for-like growth. The company added 10 new stores in the quarter, with accelerated store additions identified as the primary growth driver. Motilal Oswal reiterates a BUY rating with a target price of INR 4,600.