Shares of Avenue Supermarts Ltd, the parent company of DMart, declined by 1.9% to ₹3,982 in Monday’s session after the company reported a 2% year-on-year drop in net profit for Q4 FY25, despite strong revenue growth.
The company posted a consolidated net profit of ₹551 crore in Q4 FY25, compared to ₹563 crore in the same quarter last year. Revenue from operations rose 17% to ₹14,872 crore, up from ₹12,726.6 crore in Q4 FY24.
Earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter stood at ₹955.3 crore, up 1.2% YoY. However, EBITDA margins slipped to 6.4%, down from 7.4% last year, indicating increased operational costs.
CEO Neville Noronha said while revenue grew 16.7%, profit after tax before prior period adjustments declined 3.4%, not aligning with the top-line growth. Same-store growth for stores older than two years was 8.1% in Q4 FY25, compared to 10.3% a year ago, largely driven by increased footfall.
The company’s e-commerce business, DMart Ready, continues to gain momentum in metro cities. Noronha noted strong growth in the home delivery channel despite the closure of multiple pickup points.
At the last traded price, Avenue Supermarts had a market cap of ₹2.58 lakh crore, with a 52-week range of ₹3,340 to ₹5,484.85.
