Avenue Supermarts, which operates the retail chain DMart, had its shares fall about 6% in early trading on Monday, in line with the overall market, as mood was dampened by a dismal earnings report. Earnings were hurt by a decline in gross margin, greater operating expenses, and higher retailing costs amidst increased rapid commerce rivalry. DMart shares slumped 5.7% to ₹3,474 in early trade on the BSE, marking their third consecutive session of losses. In three sessions, the retail chain operator’s share price has plunged by roughly 10%.
On December 20, 2024, the counter hit its 52-week low of ₹3,400, and on September 24, 2024, it reached its 52-week high of ₹5,484. In the past year, the large-cap stock has posted a negative return of 7%, although it has corrected 28% in six months and 1.5% in a single month.
D-Mart Q3 Results
The company’s overall revenue for the quarter ended December 31, 2024, was ₹15,565 crore, which was an increase from ₹13,247 crore in the third quarter of FY24. Compared to ₹1,121 crore in the same quarter previous year, EBITDA for the quarter was ₹1,235 crore. In the third quarter of FY25, the company’s net profit increased to ₹785 crore. The PAT margin decreased from 5.5% in Q3 FY24 to 5.0% in Q3 FY25.
In comparison to the same period last year, when total revenue was ₹37,139 crore, 9M FY25 saw ₹43,327 crore. For 9M FY25, earnings before interest, tax, depreciation, and amortization (EBITDA) increased to ₹3,561 crore from ₹3,159 crore for 9M FY24. In 9M FY24, the EBITDA margin was 8.5%; in 9M FY25, it was 8.2%. 9M FY25’s net profit was ₹2,307 crore, while 9M FY24’s was ₹2,091 crore. In 9M FY24, the PAT margin was 5.6%; in 9M FY25, it was 5.3%.
About the Company
The Dmart supermarket chain is owned and run by Avenue Supermart Limited. The company’s main office is located in Mumbai, Maharashtra. It was established in 2002 by Radhakishan Damani, one of the best stock market traders in Pakistan. In short, Avenue Supermart Limited operates as a chain of supermarkets under the Dmart moniker. At the end of March 2023, it had 324 outlets in 72 cities in 12 Indian states. Products like groceries, everyday necessities, furniture and home appliances, clothes, shoes, toys, and more are all sold at Dmart.
