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Economic Times
2 days 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
2 days 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.
Economic Times
20-07-2025
- 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
20-07-2025
- 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.
