India’s retail sector isn’t just about shopping — it’s a major engine of the country’s economy. The sector powers nearly 10% of our GDP and employs millions of people.

When consumption booms, GDP flies. When it slows, the entire economy feels it.

And at the heart of India’s organised retail space is one stock market favourite: Avenue Supermarts, the company behind DMart — a name that needs no introduction to Indian households or investors.

Over the weekend, the company posted its earnings for the quarter ended June 2025.

In early trade today, Avenue Supermarts share price declined after investors digested the results and brokerages highlighted their concerns. With this fall, the stock is now down 20% in a year.

Avenue Supermarts Share Price – 1 Year

Let’s take a detailed look into its earnings for the first quarter and examine whether a rebound is on the cards.

Avenue Supermarts Q1 Results

For the quarter ended June 2025, Avenue Supermarts, which runs the Dmart value chain, reported a 16% YoY growth in its standalone revenue while its EBITDA grew 8%, missing street estimates.

The company’s management indicated that revenue growth was lower due to deflation in several categories.

The company’s gross margins came at 14.6% due to a decline in the share of higher-margin products, higher operating costs, and continued competition from the FMCG sector.

As a result, the company posted a flat net profit for the quarter under review.

During the quarter, Dmart added 9 new stores. Its annualized revenue per store

rose 2% YoY.

About Avenue Supermarts

Avenue Supermarts runs the national supermarket chain DMart — which provides value-conscious customers with home and personal use products under one roof. The company operates across three categories:

• Foods
• Non-Foods (FMCG)
• General Merchandise & Apparel

Outlook for Avenue Supermarts

The muted performance by Avenue Supermarts has raised concerns about margin pressures in a competitive retail environment.

Due to rising competition from quick commerce players, and a surge in wages of entry-level positions, margins have tightened as can be seen from its numbers.

Going ahead, the pace of store additions and margin improvement will be the key monitorables.

The company plans to add 40–50 stores every year, which means there will be visibility on revenue growth.

However, keeping an eye on margins is crucial — especially in the foods and FMCG segments, where competition from quick commerce players is intensifying.

Even in the general merchandise and apparel segment, competition is gradually picking up as players like Reliance Retail and Aditya Birla Retail continue to expand their footprint.

Retail is a tough business — and even well-run companies like DMart aren’t immune to headwinds. While the company remains fundamentally strong, it currently faces challenges on both growth and margin fronts. 

Happy Investing.

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