On October 14, Tata Group’s retail arm, Trent Ltd, surpassed Avenue Supermarts Ltd in market capitalization, reaching ₹2.91 lakh crore. In contrast, Avenue Supermarts, which operates the hypermarket chain DMart, had a market cap of ₹2.72 lakh crore, according to NSE data.
Avenue Supermarts experienced a significant decline of over 9% in its share price, hitting an intraday low of ₹4,139.95 per share on the NSE. This drop followed disappointing financial results, as the company’s net profit and revenue for the September quarter of FY25 fell short of expectations.
For Q2FY25, Avenue Supermarts reported a quarter-on-quarter net profit decline of over 14%, amounting to ₹659.44 crore, compared to ₹773.68 crore in Q1FY25. However, year-on-year, net profit increased by more than 5% from ₹623.35 crore in Q2FY24. For the first half of FY25, net profit grew over 11% to ₹1,433.12 crore from ₹1,282.06 crore in H1FY24.
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The company’s consolidated revenue from operations for Q2FY25 rose by 14% to ₹14,444.5 crore, up from ₹12,624.37 crore in Q2FY24. Sequentially, revenue increased by 2% from ₹14,069.14 crore in Q1FY25. For H1FY25, revenue reached ₹28,513.64 crore, reflecting a growth of over 16% compared to the previous year.
In contrast, Trent has expanded its presence by opening 193 new stores for its affordable clothing brand, Zudio, in the last financial year, totaling 545 outlets in 164 cities. Trent’s shares have soared over 167% year-to-date on the NSE, while Avenue Supermarts’ shares have risen by just over 2%. As of 1:58 PM, Trent shares traded at ₹8,182.25, down by 0.64%, while Avenue Supermarts shares were at ₹4,177.9, down by 8.63%.