Introduction:
RK Damani-backed retail chain reported a 4.7% YoY rise in net profit for Q3 FY25, reaching ₹723 crore. Despite strong revenue growth, stock declined due to missed EBITDA margin expectations and increased operational costs. Leadership changes were also announced.
Also Read: Auto ancillary stock hits 5% upper circuit after it acquires two plots in Tamil Nadu for ₹7 Cr
Share price movement of Avenue Supermarts:
On January 13, 2025, Avenue Supermarts Ltd. opened at ₹3,520.00, down 4.5% from its previous close of ₹3,685.70. The stock reached a high of ₹3,640.35 and a low of ₹3,474.00. By 1:13 PM, it traded at ₹3,586.70, a 2.69% decrease, with a market cap of ₹2,33,587.14 crore.
What’s the news:
Avenue Supermarts, backed by RK Damani, saw its stock decline despite reporting profits for Q3. The company reported a 4.7% YoY rise in net profit for Q3 FY25, reaching ₹723 crore. This was an improvement from ₹690.61 crore during the same period last year, signaling steady growth.
The decline in stock price came as EBITDA margins missed expectations due to a higher proportion of food sales, which typically offer lower margins. The company faced increased operating costs, including staff expenses, leading to a 50 basis points dip in margins.
The company saw a 17.68% YoY increase in operating revenue, amounting to ₹15,972.55 crore in Q3 FY25, up from ₹13,572.47 crore in Q3 FY24. Despite this strong revenue growth, EBITDA margins fell short of expectations due to a higher food sales mix and increased operational expenses.
DMart also announced key leadership changes, with Anshul Asawa set to succeed Ignatius Navil Noronha as CEO and Managing Director by February 2026. This transition follows Noronha’s five-year term, ending in January 2026, and aims to ensure smooth leadership continuity.
Stock performance of Avenue Supermarts for Period of 1 week, 6 months and 1 year:
Avenue Supermarts Ltd. has faced a decline in stock performance, with a 6.32% drop over the past week, a 26.9% decrease over the last six months, and a 4.03% dip in the past year, reflecting challenges in its growth trajectory.
Also Read: Logistics stock jumps 4.3% after it partners with Ethihad for cargo movement
Shareholding pattern of Avenue Supermarts:
| All values in % | Sep 2024 | Jun 2024 | Mar 2024 |
| Promoter | 74.70% | 74.70% | 74.70% |
| FII | 10% | 9.20% | 8.30% |
| DII | 7.50% | 8.00% | 8.60% |
| Public | 7.90% | 8.10% | 8.50% |
About Avenue Supermarts:
Avenue Supermarts Limited (NSE: DMART) is a national supermarket chain offering a wide range of products across foods, FMCG, and general merchandise. Known for its value-retailing strategy, it focuses on cost-effective pricing and operational efficiency.
Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.
