DMart owner Avenue Supermarts reports 17.5% revenue growth in Q3 FY25, PAT rises by 6.5%

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(), a leader in India’s retail sector, has posted remarkable financial results for the third quarter of FY25, solidifying its position as a major force in the food and grocery retail market. With a standalone total revenue of ₹15,565 crore, the company recorded a 17.5% year-on-year growth, while its quarterly profit growth also climbed by 6.5% to ₹785 crore. Despite a competitive retail landscape, DMart’s focus on operational efficiency and customer-centric strategies continues to drive its strong performance.

Strong Financial Performance Despite Challenging Conditions

DMart’s growth trajectory remains impressive, supported by its steadfast adherence to the Everyday Low Cost-Everyday Low Price (EDLC-EDLP) business model. This approach, which emphasizes competitive procurement and operational efficiencies, enables the company to deliver superior value to customers while maintaining profitability.

The company’s EBITDA for Q3 FY25 rose by 10.2% year-on-year to ₹1,235 crore. However, the EBITDA margin decreased slightly to 7.9% from 8.5% in the corresponding quarter of FY24, reflecting heightened cost pressures in the retail market. Similarly, PAT margins for the quarter narrowed to 5.0% from 5.5%, a trend attributed to increased competition in the fast-moving consumer goods (FMCG) sector.

For the nine months ending December 31, 2024, DMart reported a standalone total revenue of ₹43,327 crore, representing a 16.7% year-on-year increase. Net profit during this period grew by 10.4% to ₹2,307 crore, showcasing the company’s ability to sustain quarterly profit growth amidst shifting consumer preferences and intensifying market dynamics.

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Leadership Transition Marks a New Chapter for DMart

In addition to its financial achievements, DMart announced a significant leadership change. , the company’s long-serving Managing Director and CEO, has decided not to renew his tenure beyond January 2026. Noronha’s tenure, which began in 2004, has been instrumental in transforming DMart into one of India’s most successful retail enterprises, growing the store count from five to 387 and achieving an annual turnover exceeding ₹50,000 crore.

The Board of Directors has appointed , a seasoned executive with extensive experience in consumer markets, as CEO Designate, effective March 2025. Asawa, an alumnus of IIT Roorkee and IIM Lucknow, brings a wealth of knowledge from his 30-year career at Unilever, where he spearheaded innovation, digital transformation, and market expansion initiatives across India, Asia, and Europe.

Under Noronha’s leadership, DMart has consistently prioritized simplicity, cost efficiency, and customer satisfaction as core operating principles. These strategies have driven the company’s quarterly profit growth and solidified its reputation as a trusted name in Indian retail.

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Expansion and E-Commerce Evolution

During Q3 FY25, DMart added 10 new stores, bringing its total to 387 as of December 31, 2024. The company continues to strengthen its footprint across India, offering a diverse range of products, including groceries, personal care, and apparel, under one roof.

DMart’s online arm, DMart Ready, reported a 21.5% growth in revenue over the nine-month period. CEO Neville Noronha noted a significant shift in consumer preferences towards home delivery services, which now account for a larger share of DMart Ready’s sales compared to its traditional pick-up point model. As e-commerce dynamics evolve, the company is aligning its strategy to cater to the growing demand for convenient home delivery options, while retaining flexibility for pick-up point services in select locations.

Challenges and Strategic Adaptation

The retail market’s competitive landscape continues to pose challenges, particularly in metro areas where discounting remains intense. Noronha acknowledged this trend but emphasized that its impact on high-turnover stores has moderated compared to the previous quarter. DMart’s commitment to being a value-driven retailer remains central to its strategy, enabling it to withstand pricing pressures while delivering superior customer experiences.

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Future Outlook

As DMart prepares for a seamless leadership transition, the company is well-positioned to maintain its growth momentum under Anshul Asawa’s guidance. With a proven track record in driving innovation and operational excellence, Asawa is expected to lead DMart into its next phase of expansion, leveraging both physical and digital channels to capitalize on emerging retail trends.

Neville Noronha’s enduring legacy of strategic foresight and operational efficiency will continue to inspire the company’s journey, setting a strong foundation for sustained growth and profitability.

About Avenue Supermarts Limited

Avenue Supermarts Limited, headquartered in Mumbai, operates under the brand name DMart. Established in 2002, the company is a household name in India, offering an extensive range of products across categories like groceries, personal care, home essentials, and apparel. As of December 2024, DMart operates 387 stores with a retail area of 16.1 million sq. ft., serving millions of customers nationwide.


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