Radhakishan Damani-owned Avenue Supermarts (DMart) is set to reveal its March quarter (Q4FY25) results on Saturday, May 3. The retail player is expected to report a decent year-on-year (YoY) growth in its sales and profit. However, margins may remain under pressure despite a largely stable general merchandise and apparel mix.
DMart, one of the largest food and grocery retailers in India, had reported a modest 4.9 per cent YoY increase in its consolidated net profit for Q3FY25. However, its net profit margin slipped to 4.5 per cent from 5.1 per cent YoY. EBITDA margin also eased to 7.6 per cent as compared to 8.3 per cent YoY.
Giving its Q4 business updates in the first week of April, the company said its standalone revenue from operations stood at ₹14,462 crore for the March quarter, reflecting an increase of over 16.67 per cent from ₹12,393 crore in the same quarter of the previous fiscal year (Q4FY24).
During the quarter, the company opened 28 new stores—the highest quarterly addition in the last four years. With these new openings, the total store count has reached 415.
Overall, the company has added 50 stores in FY25, higher than 41 stores in FY24 and 40 stores in FY23.
DMart Q4 results preview: What top brokerages say
According to the estimates of Motilal Oswal Financial Services, DMart’s adjusted PAT may increase 7.8 per cent, while revenue may jump 17 per cent YoY, led by store additions (+14 per cent) and mid-to-high single-digit SSSG (same store sales growth).
EBITDA may grow 13.9 per cent YoY, while EBITDA margin may slip by 20 bps YoY to 7.2 per cent from 7.4 per cent.
Motilal pointed out that DMart added 28 stores quarter-on-quarter (QoQ), taking its total store count to 415, with 50 net store additions in FY25.
Nuvama Institutional Equities expects a 17 per cent YoY jump in revenue and an 8 per cent YoY increase in EBITDA. PAT may increase 3 per cent YoY to ₹620 crore.
“We expect DMart to report a gross margin of 13.5 per cent against 13.7 per cent in Q4FY24, assuming a stable GM&A (general merchandise and apparel) mix. This leads to an EBITDA margin estimate of 7 per cent against 7.6 per cent in Q4FY24 with EBITDA at ₹1,000 crore, up 8 per cent YoY,” said Nuvama.
Kotak Institutional Equities expects a consolidated revenue growth of 16.9 per cent YoY in Q4, driven by the addition of 28 stores and single-digit SSSG.
Moreover, Kotak expects a consolidated gross margin of 14.4 per cent, marking a decline of 10 bps YoY and an EBITDA margin of 7 per cent. Sequentially, Kotak expects gross margin to contract 30 bps and EBITDA margin to contract 60 bps, given the unfavourable seasonality.
DMart share price trend
DMart shares closed 3.04 per cent lower at ₹4,060.50 on Friday, May 2, a day ahead of its Q4 results day.
Over the last year, the stock has declined nearly 12 per cent, hitting a 52-week low of ₹3,337.10 on March 3 this year and a 52-week high of ₹5,484 on September 24 last year.
On a monthly scale, the stock jumped 20 per cent in March, followed by a 3 per cent gain in April.
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