D-Mart’s net profit for the fourth quarter of FY25 decreased by 2.19% compared to the same time last year, standing at Rs 550.90 crore. Despite this, the company’s revenue from operations grew by 16.86%, reaching Rs 14,871.86 crore in the quarter ending on March 31, 2025.
The company’s profit before tax (PBT) also dropped by 5.62%, from Rs 763.20 crore in Q4 FY24 to Rs 720.30 crore in Q4 FY25. Earnings before interest, tax, depreciation, and amortization (EBITDA) for the quarter were Rs 955 crore, showing a slight decline of 1.17% from the Rs 944 crore recorded last year. The EBITDA margin also went down from 7.4% to 6.4% in Q4 FY25.
During this quarter, D-Mart opened 28 new stores, continuing its expansion.
D-Mart follows a business strategy called “Everyday Low Cost – Everyday Low Price” (EDLC-EDLP), which helps the company keep prices low by buying goods at competitive prices, using efficient operations, and delivering value to customers.
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On an annual basis, D-Mart’s net profit increased by 6.78%, reaching Rs 2,708.02 crore for FY25, compared to Rs 2,536.17 crore in FY24. The company’s annual revenue grew by 16.87%, reaching Rs 59,358.05 crore in FY25 from Rs 50,788.83 crore in FY24. D-Mart also added 50 new stores in FY25.
On a standalone basis, D-Mart’s net profit for Q4 FY25 rose by 2.57% to Rs 619.71 crore, compared to Rs 604.20 crore in Q4 FY24. The standalone revenue grew by 16.69%, reaching Rs 14,462.39 crore.
Neville Noronha, CEO and Managing Director of Avenue Supermarts, the parent company of D-Mart, said, “In Q4 FY25, our revenue grew by 16.7% compared to last year, but our profit after tax (PAT) declined by 3.4%. This was not in line with our sales growth. Our older stores grew by 8.1% during the quarter, but that’s slower than the 10.3% growth in Q4 FY24. The growth was mainly due to more customers shopping at our stores.”
Noronha pointed out three main challenges for the quarter:
- Increased competition in the FMCG market hurt the company’s gross margins.
- Wages for entry-level jobs increased because there was a shortage of skilled workers.
- The company continued to invest in improving service levels, including faster checkout, better product availability, and opening more stores.
Despite these challenges, the company remains strong in metro cities, where D-Mart stores are fewer compared to other areas. Gross margins in these cities will remain lower for some time.
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Noronha also mentioned that the company’s online business, D-Mart Ready, is growing well in key metro cities. Although some of the pick-up points (PUPs) for online orders were closed, the home delivery service is growing rapidly and compensating for the lost sales.
Avenue Supermarts is based in Mumbai and owns D-Mart stores, a popular supermarket chain that sells home and personal products, including food, FMCG goods, general merchandise, and apparel.
