Avenue Supermarts Limited (DMart) is a national supermarket chain, with a focus on value-retailing. We offer a wide range of products with a focus on the Foods, Non-Foods (FMCG) and General Merchandise & Apparel product categories. The company was founded by Radhakishan Damani and is based in Mumbai. The company operates the DMart retail chain, first launched in Mumbai in 2002.
The company operates under a distinctive business model that emphasizes value-for-money pricing to customers. It follows the "Everyday Low Cost - Everyday Low Price" strategy, focusing on competitive procurement, operational efficiency, and cost-effective distribution to offer value-for-money pricing to customers. This approach has established DMart as one of India's most trusted retail brands, particularly among cost-conscious consumers seeking quality products at competitive prices.
DMart's retail footprint spans across multiple product categories. DMart is a supermarket chain that offers customers a range of products with a focus on the foods, non-foods fast-moving consumer goods (FMCG) and general merchandise and apparel product categories. Each DMart store stocks home utility products, including food, toiletries, beauty products, garments, kitchenware, bed and bath linen, home appliances and others. The stores are strategically designed to serve as one-stop shopping destinations for households, offering everything from daily essentials to lifestyle products.
As of March 2025, DMart has 415 stores across 12 states and union territories in India. The company has demonstrated consistent expansion over the years, with DMart added 28 new stores in the quarter, continuing its steady expansion across key Indian markets such as Maharashtra, Gujarat, Telangana and Tamil Nadu. However, the company added a total of 50 stores in FY25. This expansion strategy reflects the company's commitment to extending its reach into new markets while deepening penetration in existing ones.
The company's geographic footprint covers key states including Maharashtra, Gujarat, Andhra Pradesh, Madhya Pradesh, Karnataka, Telangana, Chhattisgarh, Delhi-NCR, Tamil Nadu, Punjab, and Rajasthan. This strategic presence in economically vibrant regions positions DMart advantageously to capture growing consumer demand across diverse markets.
Avenue Supermarts Ltd has a market capitalisation of ₹ 2,77,290 Cr as on 04-Jul-2025. As per Value Research classification, it is a Large Cap company. The company maintains a strong financial position with Company is almost debt free. This robust balance sheet provides the company with financial flexibility to pursue growth opportunities and navigate market challenges effectively.
The company's recent financial performance shows mixed results. For Q4 FY25, The retail company's revenue from operations stood at ₹14,872 crore in the March FY25 quarter, up 17% YoY from ₹12,726.6 crore registered in the fourth quarter of the 2023-24 financial year (Q4FY24). However, profitability faced pressure as Avenue Supermarts reported a 2% year-on-year decline in consolidated net profit for Q4FY25, totaling ₹551 crore, down from ₹563 crore in the same quarter last year.
For the third quarter of FY25, the company showed better performance with Avenue Supermarts Ltd, which owns and operates the retail chain D-Mart, on Saturday reported a 4.8 per cent rise in its consolidated net profit to Rs 723.54 crore for the third quarter ended December 2024. Its revenue from operations rose 17.68 per cent to Rs 15,972.55 crore during the quarter under review.
- Revenue: ₹14,872 crore (up 17% YoY)
- Net Profit: ₹551 crore (down 2% YoY)
- EBITDA: ₹955 crore (up 1.2% YoY)
- EBITDA Margin: 6.4% (vs 7.4% in Q4 FY24)
- Revenue: ₹15,973 crore (up 17.7% YoY)
- Net Profit: ₹723.54 crore (up 4.8% YoY)
- PAT Margin: 4.5% (vs 5.1% in Q3 FY24)
The company's operational metrics reflect its market leadership position. Two years and older DMart stores grew by 8.1% during Q4 FY25 as compared to 10.3% in Q4 FY24. The growth is primarily driven by increased footfall. This same-store sales growth indicates strong customer loyalty and the effectiveness of DMart's value proposition.
DMart has also ventured into the digital space with its online platform. The company is also involved in the online and multi-channel retail of grocery and household products under the DMart Ready brand name. In December 2016, the company initiated its online retail venture, DMart Ready, enabling customers to purchase groceries and household items over the internet. The management has expressed confidence in this channel's growth potential, particularly in metropolitan markets.
DMart's revenue is well-diversified across different product categories. In the financial year 2022-23, food products (groceries, staples, processed foods, dairy, frozen products, beverages & confectionery, and fruits & vegetables) accounted for 56.03% of the revenue of DMart. Non-food items in the fast-moving consumer goods category (home care products, personal care products, toiletries, and other over-the-counter products) contributed 20.93%. General merchandise and apparel (bed & bath, toys & games, crockery, plastic goods, garments, footwear, utensils, and home appliances) collectively constituted 23.04% of the revenue in FY23.
The company faces several operational challenges that have impacted recent performance. Noronha explained that Avenue Supermarts faced three key challenges during the fourth quarter that impacted its financial performance. Firstly, heightened competitive intensity in the FMCG segment exerted pressure on gross margins. Secondly, there was a notable surge in wages for entry-level positions, driven by a demand-supply mismatch in the availability of skilled workforce. Thirdly, the company continued its investments to enhance service levels — focusing on quicker product availability, faster checkouts, and preparations for future store openings.
Despite these near-term challenges, Analysts cited rising competition and increasing costs as key concerns but remained broadly confident in the company's long-term value proposition. The company's strong market position, debt-free balance sheet, and consistent expansion strategy position it well for long-term growth in India's evolving retail landscape.
The stock trades at premium valuations reflecting its market leadership position. The P/E ratio of Avenue Supermarts Ltd is 102.40 times as on 04-Jul-2025, a 2% premium to its peers' median range of 100.28 times. The P/B ratio of Avenue Supermarts Ltd is 12.94 times as on 04-Jul-2025, a 1156% premium to its peers' median range of 1.03 times. These high valuations reflect investor confidence in the company's growth prospects and market position, though they also indicate high expectations for future performance.
