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Avenue Supermarts Ltd, operator of the DMart supermarket chain, reported a significant decline of 23.4 per cent in its consolidated net profit for Q4 FY25, dropping to Rs 550.79 crore from Rs 719.28 crore in Q4 FY24.

Total expenses for the company increased by 18.2 per cent to Rs 14,176.61 crore in Q4 FY25, compared to Rs 12,001.22 crore in the same quarter last year, placing pressure on profitability. On a quarter-on-quarter basis, Avenue Supermarts saw a 7 per cent dip in total income, which fell to Rs 14,896.91 crore in Q4 FY25 from Rs 15,996.69 crore in Q3 FY24.

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Neville Noronha, CEO of Avenue Supermarts, stated that profit after tax (PAT) before prior period adjustments for the DMart (brick and mortar) business declined by 3.4 per cent year-on-year. Despite this, DMart stores grew by 8.1 per cent in Q4 FY25, slower than the 10.3 per cent growth recorded in the same period last year.

The company’s EBITDA (earnings before interest, tax, depreciation, and amortization) rose slightly to Rs 955 crore in Q4 FY25, up 1.2 per cent from Rs 944 crore in Q4 FY24. However, the EBITDA margin dropped to 6.4 per cent, down from 7.4 per cent in the same quarter last year.

Also Read:Godrej Q4 Results: PAT drops 21% YoY to Rs 378 crore; FY26 bookings seen at Rs 32,500 crore

CEO Neville Noronha said the drop in profits was mainly due to three reasons:

Noronha mentioned that Anshul Asawa, who joined as CEO Designate in mid-March 2025, is currently learning the business. He is expected to take over operations in the next 4-5 months, giving Noronha more time to focus on store expansion, e-commerce, and other growth areas.

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