Latest news with #DMart
Economic Times
5 hours ago
- Business
- Economic Times
DMart shares rally over 7%. What's fueling the surge?
Shares of Avenue Supermarts jumped over 7% on Wednesday to hit the day's high of Rs 4,299 on the NSE after the company said that it will step up store additions going forward to counter the quick commerce (QC) threat. The DMart operator also rejected suggestions that the competition from quick commerce will affect its financial performance. ADVERTISEMENT In an analyst meeting held on Tuesday, the company announced its plans to add more stores, reported. On Tuesday, the company also informed the exchanges about opening a new store at Pathankot in Punjab. This takes the total number of stores to 426. The company, owned by Radhakishan Damani, had informed the exchanges about the development on Tuesday after market hours. Avenue Supermarts reported a standalone net profit of Rs 830 crore in the first quarter of FY26. This was up just 2% from Rs 812 crore posted in the year-ago period. Revenue from operations in the same period increased 16% year-on-year (YoY) to Rs 15,932 Q1, the company opened nine new stores, bringing the total store count to 424 as of the end of company had then said that while overall revenue growth was strong, there were certain pressures that affected margins and costs. ADVERTISEMENT One of the key reasons for a flat profit was high deflation in the prices of several staple food items and non-food products. This price decline had impacted sales growth by about 100 to 150 basis points. Additionally, the FMCG market remained highly competitive, which also put pressure on margins. The D-Mart operator reported a standalone EBITDA of Rs 1,313 crore, compared to Rs 1,221 crore in the same quarter last year. The EBITDA margin stood at 8.2%, down from 8.9% in the year-ago period. ADVERTISEMENT On a consolidated basis, the EBITDA stood at Rs 1,299 crore, with an EBITDA margin of 7.9%, also lower than the 8.7% posted in company's CEO and MD, Neville Noronha, said that older stores (two years and above) recorded a 7.1% growth in the quarter. ADVERTISEMENT The company also saw an increase in operating costs, attributed to improved service levels, capacity building, and inflation in entry-level wages. The gross margin was lower compared to the previous year due to continued competitive pressure in the FMCG segment. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
5 hours ago
- Business
- Time of India
DMart shares rally over 7%. What's fueling the surge?
Shares of Avenue Supermarts jumped over 7% on Wednesday to hit the day's high of Rs 4,299 on the NSE after the company said that it will step up store additions going forward to counter the quick commerce (QC) threat. The DMart operator also rejected suggestions that the competition from quick commerce will affect its financial performance. In an analyst meeting held on Tuesday, the company announced its plans to add more stores, reported. Explore courses from Top Institutes in Please select course: Select a Course Category healthcare Technology Design Thinking PGDM MCA Digital Marketing Operations Management Project Management others Product Management Data Science CXO MBA Management Data Analytics Leadership Public Policy Others Finance Cybersecurity Artificial Intelligence Degree Healthcare Data Science Skills you'll gain: Duration: 11 Months IIM Lucknow CERT-IIML Healthcare Management India Starts on undefined Get Details On Tuesday, the company also informed the exchanges about opening a new store at Pathankot in Punjab. This takes the total number of stores to 426. The company, owned by Radhakishan Damani, had informed the exchanges about the development on Tuesday after market hours. Avenue Supermarts reported a standalone net profit of Rs 830 crore in the first quarter of FY26. This was up just 2% from Rs 812 crore posted in the year-ago period. Revenue from operations in the same period increased 16% year-on-year (YoY) to Rs 15,932 crore. In Q1, the company opened nine new stores, bringing the total store count to 424 as of the end of June. The company had then said that while overall revenue growth was strong, there were certain pressures that affected margins and costs. One of the key reasons for a flat profit was high deflation in the prices of several staple food items and non-food products. This price decline had impacted sales growth by about 100 to 150 basis points. Additionally, the FMCG market remained highly competitive, which also put pressure on margins. The D-Mart operator reported a standalone EBITDA of Rs 1,313 crore, compared to Rs 1,221 crore in the same quarter last year. The EBITDA margin stood at 8.2%, down from 8.9% in the year-ago period. On a consolidated basis, the EBITDA stood at Rs 1,299 crore, with an EBITDA margin of 7.9%, also lower than the 8.7% posted in Q1FY25. The company's CEO and MD, Neville Noronha, said that older stores (two years and above) recorded a 7.1% growth in the quarter. The company also saw an increase in operating costs, attributed to improved service levels, capacity building, and inflation in entry-level wages. The gross margin was lower compared to the previous year due to continued competitive pressure in the FMCG segment.
Business Upturn
7 hours ago
- Business
- Business Upturn
Why are DMart shares up over 5% today? Explained
Shares of Avenue Supermarts Ltd, the operator of DMart, rose over 5% following the company's recent analyst meet, where it outlined an aggressive expansion strategy. As of 12:26 PM, the shares were trading 5.45% higher at Rs 4,216.80. DMart said it plans to double down on investments to open more stores across the country, reinforcing its commitment to long-term growth through physical retail. Despite the growing popularity of quick commerce platforms, DMart emphasised that it does not see this trend affecting its core financial metrics. The company remains confident in its traditional offline retail model and believes its value-driven format continues to resonate with Indian consumers. DMart shares traded higher today, opening at ₹3,999.00 and touching a high of ₹4,230.00 during the session. The stock had a low of ₹3,999.00 and closed higher compared to its previous close of ₹3,999.00. Over the past 52 weeks, DMart shares have moved between ₹3,340.00 and ₹5,484.85. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Business Upturn
8 hours ago
- Business
- Business Upturn
Why are DMart shares up over 5% today? Details here
Shares of Avenue Supermarts Ltd, the operator of DMart, rose over 5% following the company's recent analyst meet, where it outlined an aggressive expansion strategy. As of 12:26 PM, the shares were trading 5.45% higher at Rs 4,216.80. DMart said it plans to double down on investments to open more stores across the country, reinforcing its commitment to long-term growth through physical retail. Despite the growing popularity of quick commerce platforms, DMart emphasised that it does not see this trend affecting its core financial metrics. The company remains confident in its traditional offline retail model and believes its value-driven format continues to resonate with Indian consumers. DMart shares traded higher today, opening at ₹3,999.00 and touching a high of ₹4,230.00 during the session. The stock had a low of ₹3,999.00 and closed higher compared to its previous close of ₹3,999.00. Over the past 52 weeks, DMart shares have moved between ₹3,340.00 and ₹5,484.85. Disclaimer: The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Always conduct your own research or consult a financial advisor before making investment decisions. Author or Business Upturn is not liable for any losses arising from the use of this information. Ahmedabad Plane Crash Aman Shukla is a post-graduate in mass communication . A media enthusiast who has a strong hold on communication ,content writing and copy writing. Aman is currently working as journalist at
Mint
2 days ago
- Business
- Mint
Govt may put retail trade policy on back burner as India-US trade talks enter final leg
New Delhi: The Union government is likely to put the proposed National Retail Trade Policy on the back burner, a move seen as a conciliatory gesture towards Washington as negotiations for the India-US bilateral trade agreement enter the final stretch. The retail policy, which was first proposed in 2019, was meant to address structural challenges faced by brick-and-mortar traders and small businesses due to rising digitisation and platform-driven commerce. Shelving the policy may indirectly benefit major US-based retail giants—particularly e-commerce platforms and global retail chains like Walmart Inc.—by allowing them to continue operating in India without additional regulatory oversight. Domestic retail chains such as DMart, owned by Avenue Supermart Ltd, Reliance Retail Ltd, and Tata Retail Ltd would also benefit from the policy shift. With India's e-commerce policy, originally due in 2023,pushed to the sidelines, government officials said a separate retail policy is no longer necessary. Much of what the National Retail Trade Policy set out to achieve is already being implemented through decentralised platforms such as the Open Network for Digital Commerce (ONDC) and cooperative-led initiatives like the app-based taxi service 'Sahkar', said a person familiar with the government's thinking. 'A policy is a set of actions—and those actions are being taken," this person said, citing ONDC's success in leveling the playing field across sectors. 'Creating compliances when the purpose has already been largely achieved doesn't make sense," said a second person. Both of them declined to be identified as the government hasn't made a final decision yet. A US team of negotiators is scheduled to visit New Delhi in the second week of August to resolve the deadlock over contentious issues in the talks for the India-US bilateral trade agreement. India has made several gestures, starting with the Union Budget, to improve the trade climate, but feedback from the US suggests that its focus remains largely on pushing for exports and greater market access for GM maize and soy-based products. The US's dairy industry also has been lobbying for access to India's vast consumer market. Spokespersons of the ministries of commerce and consumer affairs, the Retailers Association of India, Amazon India, Walmart-owned Flipkart, Tata Group-owned BigBasket, DMart, and Reliance Retail did not immediately reply to emailed queries. A missed opportunity India's rapidly expanding organized retail sector is expected to reach $230 billion by 2030, Deloitte and the Retailers Association of India said in a joint report in February. The report added that private consumption in India had grown from $1 trillion in 2013 to $2.1 trillion in 2024 at a compound annual growth rate of 7.2%, surpassing the growth rates of the US, China, and Germany. A draft National Retail Trade Policy had been prepared to streamline and support the development of all formats of the retail trade sector in a harmonious manner, the ministry of commerce and industry informed the Lok Sabha on 22 December 2021. According to the ministry, the policy aimed to improve the ease of doing business, ensure easy and quick access to affordable credit, facilitate modernisation and digitisation of retail trade, and develop physical infrastructure across the retail distribution chain. The retail trade policy also sought to promote skill development to improve labour productivity, create large-scale employment opportunities, and establish a grievance redressal mechanism for the welfare of traders and their employees, the ministry had said. 'The policy has been in the works for a long time, and we have been waiting for it. The challenges in the sector—particularly those affecting MSMEs (micro, small, and medium enterprises))—must be addressed comprehensively through this policy," said Vinod Kumar, president of the India SME Forum. The second unnamed person quoted earlier pointed to ONDC, an initiative of the commerce ministry's Department for Promotion of Industry and Internal Trade, as an alternative. The digital platform offers a bouquet of services, including ride-booking, food-delivery, and e-commerce. 'Sellers are getting onboarded without any hassle, making the process seamless," said this person. According to data available on the ONDC website, about 64 million orders were placed in 2024-25 across 860 districts, and 166,691 vendors had been onboarded. Data for previous years was not available. Kuljeet Singh, chief financial officer at GI Group Holding, a staffing solution provider in the retail sector, said delaying the National Retail Trade Policy may slow the momentum of employment growth in the retail sector. 'The policy was expected to support small traders, shopkeepers, improve access to credits, and encourage formal job expansion. Without it, growth in some areas like logistics, warehousing, etc., may take a bit longer," Singh said. 'However, in our view, retail will continue to provide jobs as it does today. This delay may be a missed opportunity but with the right steps taken later, the sector can still grow stronger."
