Avenue Supermarts preview: Net profit expected to jump 6% in June quarter

Avenue Supermarts or Dmart has 327 stores as of June 30, said the company in its Q1FY24 update.

Srushti Vaidya

July 14, 2023 / 18:44 IST

Prabhudas Lilladher expects Avenue Supermarts’ profit margins to be under pressure in first half of FY24 as general merchandise and apparels, which usually bring in higher profits for the company are not doing well.

26 Aug, 2025 12:21

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Avenue Supermarts, which operates under the brand name ‘Dmart’, will announce its results for the April-June quarter on July 15. Net profit for the quarter ending June 30 is estimated to be around Rs 715.9 crore, according to mean consensus estimates of four brokerage firms. The net profit number is expected to increase 6 percent year-on-year and 43 percent sequentially.

Revenue is forecasted to be around Rs 11,785 crore in the April-June quarter, an increase of 17.5 percent year-on-year and 11.3 percent quarter-on-quarter.

Avenue Supermarts has 327 stores as of June 30, said the company in its Q1FY24 update. Revival in discretionary demand and higher number of stores added in the last three years may start contributing to growth of the company, said Motilal Oswal in an earnings preview for Q1FY24. The domestic brokerage firm further said that signs of growth will start reflecting in the April to June quarter’s revenue. Prabhudas Lilladher expects the retail company to add 1500 stores in the existing cluster in future.

However, “Despite a weak same-store-sales revenue, Avenue Supermarts has managed to protect its EBITDA margins, unlike other retailers which have seen a 200 basis points to 450 basis points contraction in margins,” said Motilal Oswal.