DMart Q3 FY25 Results: PAT up 5% at Rs 724 crore, misses Street estimates; margin shrinks by 60 bps

Avenue Supermarts (DMart) on Saturday reported a consolidated net profit of Rs 724 crore for the October-December period, marking an increase of 4.8 per cent over the corresponding period a year ago. Mumbai-headquartered DMart's revenue grew 17.7 per cent to Rs 15,973 crore, according to a regulatory filing. 

DMart's net profit fell short of analysts' expectations though its revenue met the mark.  

According to Zee Business research, DMart was expected to report a net profit of Rs 832 crore and revenue of Rs 15,683 crore for the third quarter of the current financial year. 

Avenue Supermarts Q3 FY25 Earnings: How DMart fared on the operational front

DMart logged Rs 1,218 crore in quarterly earnings before interest, taxes, depreciation and amortisation (EBITDA), up 8.8 per cent on a year-on-year basis.

Its margin, a key measure of profitability, decreased by 60 basis points (bps) to 7.6 per cent. 

Zee Business analysts had pegged DMart's quarterly EBITDA at Rs 1,290 crore and its margin at 8.2 per cent. 

DMart Management Commentary

"We continue to see increased intensity in discounting in the FMCG category and the consequent impact to high turnover per square feet stores in metro towns. However, this quarter the impact has relatively reduced versus the previous quarter (Q2 FY 2025)," said Neville Noronha, CEO and Managing Director, Avenue Supermarts. 

"We stay committed to being the most preferred value retailer to customers in the vicinity of a DMart store or a Fulfilment centre of DMart Ready," added Noronha.  

DMart Shares

On Friday, Avenue Supermarts shares declined by Rs 127.4, or 3.3 per cent, to Rs 3,685.7 apiece on BSE. 

Market participants are now set to react on DMart's quarterly numbers on Monday. 

As of January 10, DMart shares have risen 4.5 per cent so far in the New Year, outperforming the headline Nifty50 index's 0.9 per cent slide. 

DMart Leadership Transition 

Avenue Supermarts said that Noronha will not be offering his candidature for renewal of his role as the MD and CEO at the conclusion of his current term in January 2026.

"After more than two decades of exceptional leadership and a glorious tenure at the helm of the business, Neville has chosen not to extend his contract. The Board of Directors honours his decision and expresses profound gratitude for his extraordinary contribution to the company," said the company.

Its board has appointed Anshul Asawa as the CEO Designate with effect from March 15. 

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