DMart: Neville Noronha, CEO & Managing Director, Avenue Supermarts Limited, stated, ‘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.’
Q4FY25 Sees Dip in Profit Despite Revenue Uptick
Avenue Supermarts Ltd., the parent company of popular retail chain DMart, reported a 2.2% decline in standalone net profit for the fourth quarter ended March 31, 2025. The net profit stood at ₹551 crore, down from ₹563 crore in the corresponding quarter of the previous year. This decline comes despite a 17% increase in revenue, which rose to ₹14,872 crore in Q4FY25 from ₹12,727 crore in Q4FY24.
Margins Under Pressure
The EBITDA (Earnings Before Interest, Tax, Depreciation and Amortization) for the quarter stood at ₹955 crore, slightly up from ₹944 crore in the same period last year. However, the EBITDA margin dropped to 6.4% in Q4FY25 from 7.4% in Q4FY24, indicating margin pressure despite higher sales. Similarly, the PAT (Profit After Tax) margin fell to 3.7% from 4.4% a year ago.
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Basic Earnings Per Share (EPS) for the quarter declined to ₹8.47, compared to ₹8.66 in Q4FY24.
Full-Year Performance Shows Healthy Growth
For the full financial year FY25, Avenue Supermarts reported total revenue of ₹59,358 crore, a robust rise from ₹50,789 crore in FY24. The annual EBITDA also increased to ₹4,487 crore from ₹4,104 crore last year, although the EBITDA margin slightly slipped to 7.6% from 8.1%.
Despite margin compression, net profit rose to ₹2,707 crore in FY25 from ₹2,536 crore in FY24. The PAT margin dropped slightly to 4.6% from 5.0% in the previous year. The EPS for the full year improved to ₹41.61, compared to ₹38.99 in FY24, reflecting the overall growth in earnings.
Expansive Retail Footprint
DMart, promoted by veteran investor Radhakishan Damani and his family, continues to operate a broad retail footprint across key Indian states including Maharashtra, Gujarat, Telangana, Andhra Pradesh, Karnataka, Tamil Nadu, Madhya Pradesh, Rajasthan, Punjab, NCR, Chhattisgarh, and Daman. The chain is known for retailing a range of basic home and personal products at competitive prices.
Conclusion
While the fourth quarter saw a modest dip in net profit and margins, DMart’s strong top-line growth and year-end profitability reflect the brand’s resilience and consistent customer appeal. However, the margin pressures suggest a need for tighter cost controls or price optimization to sustain long-term profitability.
