DMart Q2 Preview: Avenue Supermarts’ PAT may climb up to 11% YoY, topline seen to grow 16% on new store additions – News Air Insight

Avenue Supermarts, which operates retail store chain DMart, is expected to post a net profit in the range between Rs 707 crore and Rs 790 crore, reflecting a 7–11% YoY rise, although it would be a 8% sequential decline. Revenue growth is expected to remain healthy, driven by store expansion. Estimates range between Rs 16,200 crore and Rs 16,720 crore, implying 15–16% YoY growth and 2% QoQ growth.

The estimates of JM Financial, Axis Securities, Nuvama Institutional Equities and Anand Rathi Research have been taken into account.

While Axis has the most conservative estimate on PAT, Nuvama remains most bullish in the pack. As for the topline, all the brokerages have more or less the same estimates, with Anand Rathi marginally ahead among its peers.

The earnings will be declared on Saturday, October 11, 2025.

5 things to watch out for:

1) PAT

– JM Financial pegs PAT at Rs 766 crore, up 8% YoY, down 8% QoQ

– Axis Securities expects Rs 707 crore, up 7.3% YoY, down 8.5% QoQ

– Nuvama projects a core PAT of Rs 790 crore, up 11% YoY, down 5% QoQ

– Anand Rathi estimates Rs 712 crore, up 8% YoY and down 7.8% QoQ

Analysts attribute the moderation in profitability to rising operational costs and subdued same-store sales growth amid heightened competition.

2) Revenue

– JM Financial: Rs 16,219 crore, up 15% YoY and up 2% QoQ

– Axis Securities: Rs 16,683 crore, up 15.5% YoY and up 2.0% QoQ

– Nuvama: Rs 16,219 crore, up 15% YoY and 2% QoQ

– Anand Rathi: Rs 16,720 crore, up 15.8% YoY and up 2.2% QoQ

Revenue momentum remains supported by the addition of eight new stores during the quarter, taking the total count to 432. Sales per square feet is expected to grow 1% YoY to Rs 36.4k annualised, JM said in a note.

3) EBITDA

The Earnings Before Interest, Taxes, Depreciation and Amortisation (EBITDA) performance is expected to mirror the trend in revenue, though margins are likely to contract sequentially.

– JM Financial estimates at Rs 1,234 crore, up 12% YoY and down 6% QoQ

– Axis Securities expects Rs 1,209 crore, up 10.6% YoY and down 6.9% QoQ

– Nuvama projects Rs1,258 crore (up 14% YoY, down 4% QoQ).

Analysts expect the decline to stem from higher employee and other operating expenses due to aggressive store rollouts and intensified competitive activity.

4) EBITDA margin

EBITDA margin is likely to soften to the 7.2–7.8% range versus 7.6% a year ago.

– JM Financial: 7.6%, down 26 bps YoY and 64 bps QoQ

– Axis Securities: 7.2%, down 32 bps YoY and 69 bps QoQ

– Nuvama: 7.8%, down 10 bps YoY and 40 bps QoQ

– Anand Rathi: 7.2% versus 7.6% YoY and 7% QoQ

Gross margins are expected to stay flat around 14.1–14.2%, with the drag coming mainly from higher operational intensity and competitive pricing pressures.

5) Key Monitorables

Brokerages highlight several factors to watch in Q2 results viz. the demand trends across metros and Tier-II/III towns and same-store sales growth (SSSG) trajectory.

They will also be keeping a tab on store expansion guidance and management commentary on new openings

Investors should watch out for the impact of competition from online and quick commerce players on the company’s Q2 margins.

Operating cost trends, particularly employee and logistics expenses are some other other monitorables.

(Disclaimer: The recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times.)