DMART supermarket chain operator Avenue Supermarts Ltd reported a significant decline in consolidated net income for the fourth Fy25th quarter to Rs 550.79 from 719.28 crore in the fourth quarter.
Our total expenses increased 18.2% to Rs 14,176.61 in FY25 compared to Rs 12,001.22 crore in the same period last year, putting pressure on profitability. Quarterly, Avenue Supermarts saw a 7% drop in total revenue.
DMART Sales growth slows to 8.1%
Neville Noronha, CEO of Avenue Supermarts, said that DMART (Brick and Mortar) business’s pre-period adjustment after-tax profit (PAT) fell 3.4% year-on-year. Nevertheless, the DMART store rose 8.1% at No. 4 FY25, slower than the 10.3% growth recorded in the same period last year.
EBITDA improves by just 1.2%
The company’s EBITDA (revenue before interest, tax, depreciation and amortization) rose slightly at 955 crore in the fourth quarter, up 1.2% from 944 crore in the fourth quarter of 2024. However, EBITDA margins fell to 6.4% from 7.4% in the same period last year.
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What is the profit for this quarter?
Neville Noronha CEO said the decline in profits was primarily due to three reasons.
- More competition in the FMCG segment that affected margins.
- Higher wages for entry-level staff driven by a shortage of skilled workers.
- Continuous investments to improve services, including faster checkouts and increased product availability.
- The company also opened more stores during the quarter, increasing costs.
Noronya said Anshul Asawa, who joined as CEO in mid-March 2025, is currently studying business. He is expected to take over the business in the next four to five months, allowing Noronha to spend more time focusing on store expansion, e-commerce and other growth areas.
