Avenue Supermarts Q3 preview: DMart revenue growth to slow, net profit may rise 16% YoY

DMart’s EBITDA margin is likely to remain flattish at about 8.3-8.5 percent in the third quarter (representative image)

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26 Aug, 2025 12:21

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Avenue Supermarts is likely to report slower revenue growth in the fiscal third quarter, weighed down by weak festive demand and falling input costs. The operator of DMart stores is likely to post a standalone net profit of Rs 740.6 crore for Q3FY24, up 15.5 percent on-year, as per the average of estimates of four brokerage firms.

Avenue Supermarts, which will announce its October-December results on January 13, is expected to deliver an 17 percent YoY growth in standalone revenues at Rs 13,247 crore in Q3FY24, slower than 18.5 percent in Q2FY24.

DMart’s EBITDA margin is likely to remain flattish at about 8.3-8.5 percent in the third quarter. Axis Securities said the EBITDA (Earnings Before Interest, Tax, Depreciation, Amortisation) margins are set to expand on the back of better operating leverage.

ALSO READ: Migsun Group sells retail space in national capital to Dmart for Rs 108 crore

Slow store addition, weak festive sales hurt DMart growth

Store additions remained slow for DMart during the quarter, with only five stores added during the quarter. Total number of stores as of December 31 was at 341. The company’s sales per square feet is estimated to increase 4.3 percent on-year to Rs 9455 in the October-to-December quarter, as per brokerage firm DART.

Brokerages believe that discretionary demand remained weak during October-December even with the festival season falling into Q3FY24 instead of Q2.

ALSO READ: DMart Q3 business update gets cautious thumbs up from brokerages; speed up, say analysts

“While the shift in the festive season was expected to benefit discretionary companies, the industry-wide commentary has indicated a persistent slowdown in the discretionary category in 3QFY24, which may be still hurting the non-food category,” said Motilal Oswal in a report. Non-food categories make 25-30 percent of total revenue for Dmart.

Apart from weak demand, DMart’s larger stores have seen a slower-than-expected scale-up in sales, plus the discretionary space in the store is not attracting productivity like it should, said the brokerage firm.

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