Avenue Supermarts Ltd, operator of the DMart retail chain, reported a 17.8% year-on-year rise in consolidated revenue to ₹19,644 crore in the July-September quarter. Consolidated net profit increased 8.5% to ₹743 crore, marking slower growth compared to revenue. The net profit margin narrowed to 3.8% from 4.1% a year earlier, while the EBITDA margin declined to 7.1% from 7.3%.
The company added 15 new stores during the quarter, bringing its total store count to 518 as of September 30. Growth was notably stronger at older stores, with those two years and older posting a 9.5% increase in sales compared to 6.8% in the same quarter last year, said Anshul Asawa, managing director and CEO of Avenue Supermarts. Operating expenses rose due to entry-level wage inflation, with employee benefits expense up 18.7% to ₹447.14 crore and finance costs rising 82.8% to ₹63.90 crore.
The slower profit growth amid rising expenses highlights cost pressures in the retail sector despite robust revenue gains. Food and grocery products remained the largest segment, accounting for 56.9% of total revenue. The company’s focus on value-for-money pricing continues even as depreciation and other expenses increased by over 18%. This performance reflects broader trends in Indian retail where expansion and inflationary costs are impacting margins.
Depreciation and amortisation expenses rose 25.4% to ₹317.75 crore, while other expenses increased 18.3% to ₹1,091.83 crore during the quarter, according to livemint.com.