Latest news with #AvenueSupermarts
Economic Times
2 days ago
- Business
- Economic Times
Avenue Supermarts' online sales jump 21% to Rs 3,502 Cr in FY25, losses widen amid expansion push
Avenue Supermarts, the operator of DMart retail chain, saw sales at its online grocery unit expand 21% in FY25 while losses widened as it expanded into new geographies. Sales for Avenue E-Commerce (AEL), its online subsidiary started eight years ago, was at Rs 3502 crore while net loss was Rs 247 crore, as per its latest annual report. The subsidiary, which runs DMart ready, had reported sales of Rs 2899 crore and a loss of Rs 185 crore in the previous fiscal year. "The nature of our industry and our job is to constantly compete, adapt and reinvent, all the time. It is literally war like. DMart Ready as an idea germinated to deliver to that ever-changing customer preference the same value through an alternate channel," said managing director Neville Noronha in its latest annual report. "We exist because we offer choice. We exist precariously as the customer has the choice to go to anyplace else – anytime, immediately, more so now by not even stepping out of their home, or even out of their chair."The company has so far invested about Rs 1138 crore in its online subsidiary to capitalise on the trend of consumers shifting to online buying especially during the this year, Avenue Supermarts, appointed Anshul Asawa to replace Noronha in February 2026, after he chose not to extend his contract more than two decades after he joined the supermarket chain. "Limited line control, maximum observability and strict governance has defined the DMart Way. I hope these principles are never compromised. What can be done can be fluid, knowing what should not be done is significantly more important. Leaders should not order, they should enable. Leaders know the least. Higher they are lesser they know. If retail is detail and retail is speed then the leader is the student, the subordinate is the teacher," said Noronha, Noronha, who owned around 1.94% stake in the company at the end of the March quarter, and is one of India's richest CEOs with its stake worth about Rs 5100 retail is estimated to have grown at 18% to Rs13 trillion while E-retail grew at 22% to Rs4.4 trillion. Of the total organised retail industry, the food and grocery segment accounts for about 29%.Unlike grocery startups Amazon and BigBasket, which rely on a delivery-based distribution model, DMart's online venture operates a hybrid model with delivery centres in areas where it has small stores from where customers can also pick up products they have ordered online.
Time of India
2 days ago
- Business
- Time of India
Avenue Supermarts' online sales jump 21% to Rs 3,502 Cr in FY25, losses widen amid expansion push
Avenue Supermarts , the operator of DMart retail chain, saw sales at its online grocery unit expand 21% in FY25 while losses widened as it expanded into new geographies. Sales for Avenue E-Commerce (AEL), its online subsidiary started eight years ago, was at Rs 3502 crore while net loss was Rs 247 crore, as per its latest annual report. The subsidiary, which runs DMart ready, had reported sales of Rs 2899 crore and a loss of Rs 185 crore in the previous fiscal year. Explore courses from Top Institutes in Select a Course Category Data Science Leadership healthcare Finance MBA PGDM Design Thinking Public Policy Degree Technology MCA Others Healthcare Project Management Cybersecurity Digital Marketing Management others Operations Management Data Analytics Artificial Intelligence Product Management Data Science CXO Skills you'll gain: Strategic Data-Analysis, including Data Mining & Preparation Predictive Modeling & Advanced Clustering Techniques Machine Learning Concepts & Regression Analysis Cutting-edge applications of AI, like NLP & Generative AI Duration: 8 Months IIM Kozhikode Professional Certificate in Data Science and Artificial Intelligence Starts on Jun 26, 2024 Get Details Skills you'll gain: Data Analysis & Interpretation Programming Proficiency Problem-Solving Skills Machine Learning & Artificial Intelligence Duration: 24 Months Vellore Institute of Technology VIT MSc in Data Science Starts on Aug 14, 2024 Get Details "The nature of our industry and our job is to constantly compete, adapt and reinvent, all the time. It is literally war like. DMart Ready as an idea germinated to deliver to that ever-changing customer preference the same value through an alternate channel," said managing director Neville Noronha in its latest annual report. "We exist because we offer choice. We exist precariously as the customer has the choice to go to anyplace else – anytime, immediately, more so now by not even stepping out of their home, or even out of their chair." The company has so far invested about Rs 1138 crore in its online subsidiary to capitalise on the trend of consumers shifting to online buying especially during the pandemic. Earlier this year, Avenue Supermarts, appointed Anshul Asawa to replace Noronha in February 2026, after he chose not to extend his contract more than two decades after he joined the supermarket chain. "Limited line control, maximum observability and strict governance has defined the DMart Way. I hope these principles are never compromised. What can be done can be fluid, knowing what should not be done is significantly more important. Leaders should not order, they should enable. Leaders know the least. Higher they are lesser they know. If retail is detail and retail is speed then the leader is the student, the subordinate is the teacher," said Noronha, Noronha, who owned around 1.94% stake in the company at the end of the March quarter, and is one of India's richest CEOs with its stake worth about Rs 5100 crore. Organised retail is estimated to have grown at 18% to Rs13 trillion while E-retail grew at 22% to Rs4.4 trillion. Of the total organised retail industry , the food and grocery segment accounts for about 29%. Unlike grocery startups Amazon and BigBasket, which rely on a delivery-based distribution model, DMart's online venture operates a hybrid model with delivery centres in areas where it has small stores from where customers can also pick up products they have ordered online.
Business Standard
14-07-2025
- Business
- Business Standard
Avenue Supermarts slumps after Q1 PAT drops to Rs 773 cr in FY26
Avenue Supermarts (Dmart) declined 2.76% to Rs 3,955.25 after the company's consolidated net profit fell 0.11% to Rs 772.97 crore despite a 16.28% jump in revenue from operations to Rs 16,359.70 crore in Q1 FY26 over Q1 FY25. Profit before tax (PBT) rose 0.32% YoY to Rs 1,057.47 crore in Q1 June 2025. Earnings before Interest, Tax, Depreciation and Amortization (EBITDA) in Q1FY26 stood at Rs 1,299 crore, registering the growth of 6.39% compared to Rs 1,221 crore recorded in the corresponding quarter of last year. EBITDA margin stood at 7.9% in Q1FY26 as compared to 8.7% in Q1FY25. D-Mart follows Everyday low cost - Everyday low price (EDLC-EDLP) strategy which aims at procuring goods at competitive prices, using operational and distribution efficiency and thereby delivering value for money to customers by selling at competitive prices. The company opened 9 stores during the quarter. Its total store stands at 424 as on 30th June 2025. On standalone basis, the company's net profit increased 2.1% to Rs 829.73 crore on 16.2% jump in revenue from operations to Rs 15,932.12 crore in Q1 June 2025 over Q1 June 2024. Neville Noronha, CEO & managing director, Avenue Supermarts, said: Our revenue in Q1 FY26 grew by 16.2% over the previous year. Profit after tax (PAT) grew by 2.1% over the previous year. Two years and older DMart stores grew by 7.1% during Q1 FY26 as compared to Q1 FY25. Revenue growth impact of approximately 100-150 bps was primarily due to high deflation in many staples and non-food products. Gross margins are lower as compared to the same period in the previous year, due to continued competitive intensity within the FMCG space. Operating costs are higher due to our efforts on improving service levels, capacity building and inflation at entry level wages. Avenue Supermarts is a Mumbai-based company, which owns and operates D-Mart stores. D-Mart is a national supermarket chain that offers customers a range of home and personal products under one roof. It offers a wide range of products with a focus on Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories.
Time of India
14-07-2025
- Business
- Time of India
DMart shares in focus after Q1 results. Should you buy, sell or hold?
Shares of Avenue Supermarts , which operates the DMart retail chain, will be in focus on Monday after the company reported a 2% year-on-year (YoY) rise in standalone net profit at Rs 830 crore for the first quarter of FY26, compared to Rs 812 crore in the year-ago period. Revenue from operations rose 16% YoY to Rs 15,932 crore. During the quarter, the company opened nine new stores, taking its total count to 424 as of June-end. The company said revenue growth remained strong, but margin and cost pressures persisted. One of the key factors was high deflation in staple food and non-food items, which impacted sales growth by about 100–150 basis points. The highly competitive FMCG segment also weighed on margins. Standalone EBITDA came in at Rs 1,313 crore, up from Rs 1,221 crore in the same quarter last year. However, EBITDA margin dropped to 8.2% from 8.9% a year ago. On a consolidated basis, EBITDA stood at Rs 1,299 crore with a margin of 7.9%, down from 8.7% in Q1FY25. CEO and MD Neville Noronha said older stores (two years and above) recorded 7.1% growth in the quarter. Operating costs rose due to increased investments in service levels, capacity building, and inflation in entry-level wages. Gross margin also declined year-on-year due to continued pricing pressure in the FMCG segment. Should you buy, sell, or hold DMart shares? Here's what analysts say Nuvama Nuvama has maintained a Hold rating on Avenue Supermarts with a revised target price of Rs 4,086. The brokerage expects margin pressures to persist due to competitive intensity and has cut its FY26E and FY27E PAT estimates by around 6% and 8%, respectively. With a roll-forward to Q1FY28 PAT, the target has been revised downward from Rs 4,273 to Rs 4,086. Motilal Oswal (MOSL) Motilal Oswal has maintained a Buy rating with a target price of Rs 4,500. It noted that Q1FY26 EBITDA grew just 8% YoY—5% below estimates—due to a 25 basis point decline in gross margins and a 9% YoY increase in retail costs per square foot. Revenue rose 16% YoY, largely driven by 14% store expansion, though like-for-like growth slowed to 7.1% amid deflation. The company added nine stores during the quarter, up from six a year ago. MOSL also highlighted that elevated operating costs stem from efforts to improve service levels, build capacity, and manage wage inflation. Rising competition from quick commerce players could pressure near-term growth and margins, but strong store-level economics are expected to support long-term competitiveness. The brokerage cut its FY26–28E EBITDA estimates by 2–3% and EPS by 5–6% due to rising costs and higher finance expenses. It expects a compound annual growth rate (CAGR) of 18% in revenue, 17% in EBITDA, and 15% in PAT over FY25–28.
Economic Times
14-07-2025
- Business
- Economic Times
DMart shares in focus after Q1 results. Should you buy, sell or hold?
Avenue Supermarts, operator of DMart, reported a modest 2% rise in standalone net profit to ₹830 crore for Q1 FY26, with revenue up 16% to ₹15,932 crore. Synopsis Avenue Supermarts, operator of DMart, announces a 2% rise in net profit for Q1FY26. Revenue increases by 16%. The company opens nine new stores, expanding its reach. However, margin and cost pressures persist. Analysts offer mixed recommendations. Nuvama suggests a Hold, while Motilal Oswal maintains a Buy rating. Both brokerages adjust their earnings estimates due to rising costs and competition. Shares of Avenue Supermarts, which operates the DMart retail chain, will be in focus on Monday after the company reported a 2% year-on-year (YoY) rise in standalone net profit at Rs 830 crore for the first quarter of FY26, compared to Rs 812 crore in the year-ago period. ADVERTISEMENT Revenue from operations rose 16% YoY to Rs 15,932 crore. During the quarter, the company opened nine new stores, taking its total count to 424 as of June-end. The company said revenue growth remained strong, but margin and cost pressures persisted. One of the key factors was high deflation in staple food and non-food items, which impacted sales growth by about 100–150 basis points. The highly competitive FMCG segment also weighed on EBITDA came in at Rs 1,313 crore, up from Rs 1,221 crore in the same quarter last year. However, EBITDA margin dropped to 8.2% from 8.9% a year ago. On a consolidated basis, EBITDA stood at Rs 1,299 crore with a margin of 7.9%, down from 8.7% in and MD Neville Noronha said older stores (two years and above) recorded 7.1% growth in the quarter. Operating costs rose due to increased investments in service levels, capacity building, and inflation in entry-level wages. Gross margin also declined year-on-year due to continued pricing pressure in the FMCG segment. ADVERTISEMENT Nuvama has maintained a Hold rating on Avenue Supermarts with a revised target price of Rs 4,086. The brokerage expects margin pressures to persist due to competitive intensity and has cut its FY26E and FY27E PAT estimates by around 6% and 8%, respectively. With a roll-forward to Q1FY28 PAT, the target has been revised downward from Rs 4,273 to Rs 4,086. ADVERTISEMENT Motilal Oswal has maintained a Buy rating with a target price of Rs 4,500. It noted that Q1FY26 EBITDA grew just 8% YoY—5% below estimates—due to a 25 basis point decline in gross margins and a 9% YoY increase in retail costs per square foot. Revenue rose 16% YoY, largely driven by 14% store expansion, though like-for-like growth slowed to 7.1% amid deflation. The company added nine stores during the quarter, up from six a year ago. ADVERTISEMENT MOSL also highlighted that elevated operating costs stem from efforts to improve service levels, build capacity, and manage wage inflation. Rising competition from quick commerce players could pressure near-term growth and margins, but strong store-level economics are expected to support long-term competitiveness. The brokerage cut its FY26–28E EBITDA estimates by 2–3% and EPS by 5–6% due to rising costs and higher finance expenses. It expects a compound annual growth rate (CAGR) of 18% in revenue, 17% in EBITDA, and 15% in PAT over FY25–28. (You can now subscribe to our ETMarkets WhatsApp channel) Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Nikita Papers IPO opens on May 27, price band set at Rs 95-104 per share Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Why gold prices could surpass $4,000: JP Morgan's bullish outlook explained Cyient shares fall over 9% after Q4 profit declines, core business underperforms Cyient shares fall over 9% after Q4 profit declines, core business underperforms L&T Technology Services shares slide 7% after Q4 profit dips L&T Technology Services shares slide 7% after Q4 profit dips Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? Trump-Powell standoff puts U.S. Rate policy in crosshairs: Who will blink first? SEBI warns of securities market frauds via YouTube, Facebook, X and more SEBI warns of securities market frauds via YouTube, Facebook, X and more API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders API Trading for All: Pi42 CTO Satish Mishra on How Pi42 is Empowering Retail Traders Security, transparency, and innovation: What sets Pi42 apart in crypto trading Security, transparency, and innovation: What sets Pi42 apart in crypto trading Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains Bitcoin, Ethereum, or Altcoins? How investors are structuring their crypto portfolios, Avinash Shekhar explains The rise of Crypto Futures in India: Leverage, tax efficiency, and market maturity, Avinash Shekhar of Pi42 explains NEXT STORY
