DMart share price trading at ₹3944.6, 2.76% fall at 9:34 AM on 5th May 2025 – The stock opened at ₹3956, made a high of ₹4035 and touched a low of ₹3915, compared to its previous close of ₹4059. The sharp drop in Avenue Supermarts’ stock price comes after the company reported a weak set of numbers for the fourth quarter of FY25.
DMart Share Q4 Results
DMart, operated by Avenue Supermarts, posted disappointing Q4 results. While the company opened 28 new stores during the quarter, its margins took a hit. The standalone net profit fell 2.2% to ₹551 crore for Q4 FY25, as against ₹563 crore in the same quarter last year. Revenue, however, grew to ₹14,872 crore from ₹12,727 crore YoY.
Margins were the biggest worry – the EBITDA margin dropped to 6.8%, surprising analysts on the downside. The fall was mainly due to rising operating costs, especially salaries for entry-level staff, service upgrades, and future growth investments.
DMart Share Target Price from Brokerages
Following the Q4 results, several brokerages reduced their target prices on DMart shares:
- Jefferies maintained a Hold rating, but cut its target to ₹4,100 from ₹4,225.
- Motilal Oswal continued its Buy call but reduced the target from ₹4,650 to ₹4,350, citing margin pressure due to rising competition in the Quick Commerce (QC) segment.
- HDFC Securities also slashed its target price from ₹3,950 to ₹3,850, highlighting the need for better assortment and operational efficiency.
Mixed Signals: YoY Profit Up, QoQ Down
Interestingly, some numbers showed improvement too. Avenue Supermarts reported a 2.6% YoY growth in Q4 standalone net profit to ₹619.71 crore. Revenue also rose 16.7% YoY to ₹14,462.39 crore. But on a QoQ basis, profits dropped 21% and revenue dipped 7%, which reflects the pressure building in the business.
For the full FY25, net profit increased by 8.6% to ₹2,927.18 crore, while EBITDA rose to ₹4,543 crore. However, the full-year EBITDA margin also fell to 7.9%, down from 8.3% last year.
Management shared that while metro city stores remained stable, non-metro areas are seeing better growth. Also, like-for-like growth was higher in metro regions with fewer DMart stores.