Avenue Supermarts Q3 Results: Net Profit Rises 4%, Misses Estimates

Avenue Supermarts Ltd.'s third-quarter profit rose marginally, missing consensus estimates.

Consolidated net profit of the Radhakishan Damani-led company rose 4% over the same period last year to Rs 723.5 crore in the three months to December, according to its stock exchange filing. That compares with the Rs 847-crore consensus estimate of analysts tracked by Bloomberg.

Avenue Supermarts reported a 17.68% increase in revenue, reaching Rs 15,972.5 crore, compared to Rs 13,572.8 crore in the previous period. Ebitda grew by 8.66% to Rs 1,217.19 crore from Rs 1,120.18 crore, while the Ebitda margin declined by 63 basis points to 7.62% from 8.25%.

• Revenue up 18% to Rs 15,973 crore versus Rs 13,572 crore (Bloomberg estimate: Rs 15,739 crore).

• Ebitda up 8.66% to Rs 1,217 crore versus Rs 1,120 crore (Estimate: Rs 1,308 crore).

• Margin narrows to 7.6% versus 8.3% (Estimate: 8.3%).

• Net profit up 4.8% to Rs 723.5 crore versus Rs 691 crore (Estimate: Rs 847 crore).

DMart Ready, the e-commerce arm of Avenue Supermarts, has recorded a remarkable 21.5% growth in revenue during the first nine months of fiscal 2025. The company attributes this growth to evolving consumer preferences in the competitive grocery e-commerce market.

Recognising the increasing demand for home delivery services over traditional pick-up points, DMart Ready is strategically realigning its operations to meet customer expectations. This shift underscores the company's commitment to enhancing convenience and adapting to the changing needs of its customer base.

The move comes as part of DMart Ready's broader efforts to solidify its position in the rapidly growing online grocery sector.

"We continue to see increased intensity in discounting in the FMCG category and the consequent impact to high turnover per square feet stores in metro towns. However, this quarter the impact has relatively reduced versus the previous quarter (Q2 FY 2025)," said Neville Noronha, chief executive officer and managing director, Avenue Supermarts Ltd.

CEO Steps Down

Avenue Supermarts has announced the appointment of Anshul Asawa as CEO designate and senior managerial personnel, effective March 15, 2025. Ignatius Navil Noronha, the current MD, will complete his five-year term on Jan. 31, 2026. Asawa is set to succeed Noronha, assuming full responsibility as Managing Director and CEO starting Feb. 1, 2026.