Dmart parent Avenue Supermart’s shares fall 4% after Q1 update; what's worrying investors?

The retail company said its revenue for the quarter ending June 30, 2025, stood at ₹15,932.12 crore, marking a 16.19% jump year-on-year (YoY) from ₹13,711.87 crore in the same quarter last fiscal year.

Avenue Supermarts’ revenue for the same quarter in FY24 and FY23 was seen at ₹11,584.44 crore and ₹9,806.89 crore, respectively.

The numbers failed to impress the market investors, leading to a fall in shares.

The company’s total number of stores as of June 30, 2025, stood at 424 (including one store at Sanpada, Navi Mumbai, Maharashtra, currently closed for customers due to renovation).

The company had also opened a new store at Ratan Mall in Agra, Uttar Pradesh, last month.  

Last seen, the stock was trading at ₹4,240.50 apiece on the National Stock Exchange, slipping 3.45%.

It had touched an intraday low of ₹4,217.90, which was nearly 4% lower than the previous close.

Over the last five trading days, shares of Avenue Supermart have lost 2%. However, for a month’s period, it has increased over 5%.

Since January 3, 2025, which is six months, the stock has gained nearly 6%. Year-to-date, it has soared 20%.

The company’s market capitalisation stands at ₹2.77 lakh crore.

Shares of the firm had touched its one-year high of ₹5,484.85 apiece on September 24, 2024, while its 52-week low of ₹3,340 was hit on March 3, 2025.

Avenue Supermart had reported a 2% YoY fall in its consolidated net profit to ₹551 crore for the fourth quarter of FY25 (Q4 FY25), compared to ₹563 crore logged in the same period a year earlier.

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).

Its earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 1.2% YoY to ₹955.3 crore in Q4 FY25, as against ₹943.7 crore logged in Q4 FY24. The company’s EBITDA margin contracted to 6.4%, compared to 7.4% in March FY24.