DMart share price rises on ₹175 crore investment in e-commerce unit; check details

The stock ended 0.75% higher at ₹3,874.15 apiece on the National Stock Exchange (NSE).

In an exchange filing, Avenue Supermarts said that it has invested ₹174.99 crore by subscribing to 4.67 equity shares of Avenue E-Commerce Ltd (AEL) at an issue price of ₹37.41 per share.

The funds will be used for operational, working capital, and capex requirements.

The e-commerce unit was established in November 2014 and is involved in the business of online and multi-channel grocery retail under the 'DMart Ready' brand name.

The subsidiary had reported a turnover of ₹2,899.2 crore in the financial year 2023-24 (FY24), ₹2,202.03 crore in FY23, and ₹1,667.21 crore in FY22.

"The transaction is with the related party of the company and the same is executed at the arm’s length basis. The Promoter/ Promoter Group/ Group Companies of the Company does not have any interest in AEL," the company said.

DMart financials

The company had reported a revenue from operations of ₹15,973 crore in the third quarter of the current fiscal, reflecting an increase of 17.69% from ₹13,572 crore in the same period last fiscal.

EBITDA (Earnings before interest, tax, depreciation and amortisation) rose 8.6% to ₹1,217 crore in the latest December quarter, compared to ₹1,120 crore in the year-ago quarter. EBITDA margin was at 7.6% in Q3 FY25 as against 8.3% in Q3 FY24.

Net profit increased 4.92% to ₹724 crore in the quarter under review, as compared to ₹690 crore in the December quarter of the previous fiscal.

Neville Noronha, CEO and Managing Director of Avenue Supermarts Ltd, said DMart Ready expanded by 21.5% in the first nine months of FY 2025. "In the rapidly evolving dynamics of the grocery e-commerce market, we are seeing significantly more demand for home delivery compared to pick-up point and hence we continue to align our business to that extent," he added.