Avenue Supermarts, the parent company of DMart, posted a muted financial performance for the quarter ended March 31, 2025, with profit under strain despite robust topline growth. The company reported a 2.2% decline in consolidated net profit at Rs 551 crore in Q4FY25, compared to Rs 563 crore in the same period last year, reflecting continued margin pressure.
While total revenue for the quarter surged 16.8% year-on-year to Rs 14,872 crore from Rs 12,727 crore, operational efficiency took a hit. The company’s EBITDA stood at Rs 955 crore, up marginally from Rs 944 crore a year earlier, but the EBITDA margin declined to 6.4% from 7.4% in Q4FY24, signaling rising input and operational costs.
Read More: YouTube pilots new two-person Premium plan to boost subscription
Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, said, “Our revenue in Q4 FY25 grew by 16.7% over the previous year. Profit after tax (PAT) before prior period adjustments declined by 3.4% over the previous year and was not in line with sales growth. Two years and older DMart stores grew by 8.1% during Q4 FY25 as compared to 10.3% in Q4 FY24. The growth is primarily driven by increased footfalls.”
Noronha explained that Avenue Supermarts faced three key challenges during the fourth quarter that impacted its financial performance. Firstly, heightened competitive intensity in the FMCG segment exerted pressure on gross margins. Secondly, there was a notable surge in wages for entry-level positions, driven by a demand-supply mismatch in the availability of skilled workforce. Thirdly, the company continued its investments to enhance service levels — focusing on quicker product availability, faster checkouts, and preparations for future store openings.
Read More: Rediffusion wins creative and media mandate for Keya Foods
The Profit After Tax (PAT) margin also dropped to 3.7%, down from 4.4% in the same quarter last year, even as store expansion and consumer demand remained healthy.
DMart added 28 new stores in the quarter, continuing its steady expansion across key Indian markets such as Maharashtra, Gujarat, Telangana and Tamil Nadu. However, the company added a total of 50 stores in FY25.
Read More: Unilever to wind down REN Skincare after 25-year run