DMart Q4 Results Preview: Revenue and Profit to Grow YoY, But Margins May Feel the Heat, Say Brokerages
DMart : Radhakishan Damani’s Avenue Supermarts, the company behind retail giant DMart, is set to announce its financial results for the March 2025 quarter (Q4FY25) on Saturday, May 3. Market watchers and analysts are expecting a healthy year-on-year (YoY) growth in both revenue and profit. However, the positive topline numbers may come with a caveat—margins could remain under pressure due to cost dynamics and seasonality.
Avenue Supermart’s Performance So Far
Avenue Supermart has been a significant player in India’s retail space, especially in food and grocery. In Q3FY25, the company reported a modest 4.9% YoY rise in consolidated net profit. However, its net profit margin shrank to 4.5%, down from 5.1% in Q3FY24. EBITDA margins also dipped to 7.6% compared to 8.3% in the previous year.
Fast forward to Q4FY25, the company shared in its early April update that standalone revenue from operations grew to ₹14,462 crore, a notable 16.67% jump from ₹12,393 crore in Q4FY24. This solid revenue performance was backed by aggressive store expansion.
Aggressive Store Expansion Fuelling Growth
In Q4FY25 alone, DMart added 28 new stores—the highest quarterly addition in four years. This brought its total store count to 415. Over the full FY25 period, the company added 50 new stores, surpassing its addition of 41 stores in FY24 and 40 in FY23. Store expansion has been a key growth driver for DMart, especially as it penetrates deeper into both metro and non-metro markets.
What Do Top Brokerages Expect from Q4FY25?
Motilal Oswal Financial Services anticipates:
- A 17% YoY rise in revenue, driven by new stores (+14%) and mid-to-high single-digit same-store sales growth (SSSG).
- Adjusted PAT growth of 7.8% YoY.
- EBITDA to grow 13.9%, but EBITDA margin may shrink by 20 bps to 7.2% from 7.4% YoY.
Nuvama Institutional Equities is similarly optimistic on the top line:
- 17% YoY revenue growth expected.
- PAT may rise just 3% YoY to ₹620 crore.
- Gross margin forecast at 13.5%, slightly lower than 13.7% YoY.
- EBITDA margin expected at 7%, with EBITDA at around ₹1,000 crore—an 8% YoY increase.
Kotak Institutional Equities also projects:
- Consolidated revenue growth of 16.9% YoY, led by store additions and low single-digit SSSG.
- Gross margin at 14.4%, down by 10 bps YoY.
- EBITDA margin at 7%, contracting sequentially due to seasonal headwinds.
Avenue Supermart Stock Performance Overview
On the eve of the results (May 2), DMart’s share price dipped 3.04% to ₹4,060.50. Over the last 12 months, the stock has been volatile—falling nearly 12% overall. It hit a 52-week low of ₹3,337.10 on March 3, 2025, and a 52-week high of ₹5,484 on September 24, 2024.
Despite the yearly slide, the stock showed resilience in recent months—gaining 20% in March and another 3% in April.
Key Financial Metrics of Avenue Supermart
| Parameter | Value |
|---|---|
| Market Cap | ₹2,64,912 Cr |
| Current Price | ₹4,059 |
| 52-Week High / Low | ₹5,485 / ₹3,337 |
| Stock P/E | 97.4 |
| Book Value | ₹309 |
| Dividend Yield | 0.00% |
| ROCE | 19.4% |
| ROE | 14.5% |
| Face Value | ₹10.0 |
Final Take: What Lies Ahead for Avenue Supermart?
While DMart’s expansion-led revenue growth is promising, investors will be watching margins closely. Rising operational costs and stable yet pressured margins may hold back overall profitability growth. That said, the long-term outlook remains solid, especially with the company’s aggressive expansion strategy and foothold in essential retail segments.
FAQs: DMart Q4 Results Simplified
Q1: When will DMart announce its Q4FY25 results?
A: DMart will announce its March quarter (Q4FY25) results on Saturday, May 3, 2025.
Q2: What is the expected revenue growth for DMart in Q4?
A: Most brokerages expect a 16.9% to 17% year-on-year rise in revenue, driven by new store additions and moderate same-store sales growth.
Q3: Will DMart’s profit increase in Q4FY25?
A: Yes, but modestly. Adjusted PAT is expected to grow between 3% and 7.8% YoY according to brokerage estimates.
Q4: Why are DMart’s margins under pressure?
A: Seasonal factors and rising operational costs have led to expectations of lower gross and EBITDA margins.
Q5: How many stores did DMart add in FY25?
A: The company added 50 stores in FY25, including 28 in Q4 alone, bringing the total to 415.
Q6: How is DMart stock performing?
A: Despite a 12% drop over the last year, DMart stock gained 20% in March and 3% in April 2025, signaling short-term investor optimism.
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