DMart shares slip post business update for June quarter; should you buy it?

DMart share price news: Shares of DMart operator - Avenue Supermarts in Thursday's trade (July 3, 2025) slipped as much as 4 per cent to the day's low of Rs 4,220 per share. The drag in the company's stock came following the company's quarterly update for the just concluded June quarter.

At around 11:41 am, the scrip of Avenue Supermarts was down nearly 3 per cent or Rs 119.7 per share at Rs 4,272.55 per share on the BSE

For the review quarter, the company's standalone revenue from operations stood at Rs 15,932.12 crore, a growth of 16.19 per cent on-year. In the same quarter last year, the company's revenue was at Rs 13,711.87 crore. 

The revenue is higher than Rs 11,584.44 crore reported in the quarter ended 30 June 2023 and Rs 9,806.89 crore registered in the quarter ended 30 June 2022.

The 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 standalone revenue from operations for the June quarter is subject to limited review by the Statutory Auditors of the Company, added the company's filing with the exchanges.

DMart Q4FY25 earnings

DMart in the quarter ended March of the FY25 posted a 2 per cent decline in its net profit on-year to Rs 551 crore. Revenue from operations jumped 16.86 per cent year-on-year (YoY) to Rs 14,871.86 crore during the quarter ended 31st March 2025. EBITDA margin came in at 6.4 per cent in Q4FY25 as compared to 7.4 per cent in Q4FY24.

The company added 28 stores in Q4 FY25. The company adheres to Everyday low cost - Everyday low price (EDLC-EDLP) model which works on sourcing goods at competitive prices.

Brokerages on DMart

Geojit BNP Paribas in its report on the stock has recommended a 'buy' with the target at Rs 4,921 per share. Rising adoption of online grocery platforms, especially in metros, has tempered topline growth recently. We expect continued margin pressures in the near term due to high competition, noted Geojit.

Nonetheless, DMart’s debt-free balance sheet and operational strength support strong store expansion, fostering future revenue growth. Easing inflation is also expected to boost discretionary product mix and margins. We project revenue and PAT to grow at a CAGR of 19 per cent and 20 per cent, respectively, over FY25–27E. DMart currently trades at 78x 1Yr Fwd PE (2yr avg =78x).

The brokerage upgraded the target to Rs.4,921 by valuing it on a DCF basis, which implies 76x on FY27 EPS, and maintain BUY rating.