DMart Q2 results preview: Net profit and revenue likely to see double-digit growth; check details

The company’s board of directors has scheduled a meeting on Saturday to consider and approve its unaudited standalone and consolidated financial results for the second quarter of the current fiscal year.

Investors seem cautious ahead of the earnings announcement as DMart’s business update for the September quarter released earlier this month didn’t paint a rosy picture.

According to experts, the company’s net profit is expected to rise 17 to 19% year-on-year to reach between ₹700 to ₹740 crore. Meanwhile, its revenue is expected in the range of ₹14,000 to ₹14,300 crore, up nearly 14 to 16% during the September quarter.

In its business update, the company has already announced that its standalone revenue from operations for Q2FY25 stood at ₹14,050.32 crore, which marked a jump of around 14% from ₹12,307.72 crore of revenue seen in the year-ago quarter (Q2FY24).

The business update has, however, triggered concerns among experts about the company’s growth prospects. According to analysts, DMart is going to face stiff competition from the quick commerce sector in key urban markets going ahead, which could hamper its revenue growth. The number of new DMart store additions across the country is also feared to have missed management guidance.

Previous quarter performance

In the quarter ended June 2024 (Q1FY25), DMart’s consolidated net profit had risen 17.5% to ₹773.8 crore from ₹658.8 crore in the same period last year.

This came on the back of an 18.6% jump in the company's consolidated revenue from operations to ₹14,069.1 crore during the quarter compared to ₹11,865.4 crore in Q1FY24.

Key factors to watch out for in DMart Q2 results

During the Q2 result announcement, investors will focus on same-store sales growth (SSSG), and EBITDA margins. As per experts, margins are likely to contract amid a slowdown in revenue growth. Investors will also look forward to management commentary on overall business and store opening guidance.

DMart share price

Ahead of the Q2 result announcement, DMart shares closed 0.81% lower at ₹4,570 apiece on the NSE. The stock has dropped 3.48% this week, while the shares are up over 12% year-to-date.