📊 DMart 🛒
The countdown begins! Radhakishan Damani-led Avenue Supermarts, parent company of our favorite neighborhood retail chain DMart, is all set to reveal its Q4 FY25 report card this Saturday (May 3, 2025). As investors and retail enthusiasts eagerly await the numbers, let's break down what to expect from this quarter's performance.
🔍 What's Cooking in DMart's Q4 Kitchen?
The upcoming results present a classic case of "good news, but...". While the year-on-year growth story appears healthy, the quarter-on-quarter comparison might give investors some pause.
Here's the tasty (and slightly bitter) recipe we expect:
- 🍯 Sweet Revenue Growth: 16.9% YoY increase
- 🍋 Sour QoQ Dip: 6.8% decline from previous quarter
- 🧂 Margin Pressure: EBITDA margins likely around 7%
💰 The Number Game: Projections & Estimates
Market analysts have crunched the numbers, and here's the consensus:
📈 Revenue Forecast: ₹14,882.6 crore (up 16.9% YoY)
📉 EBITDA Estimate: ₹1,047.5 crore (11% YoY growth but 13.9% QoQ drop)
⚠️ Margin Watch: Gross margins may dip 30-60 basis points
Other research firms paint a similar picture, with revenue estimates clustering around ₹14,462 crore and net profit projections between ₹619–630 crore.
🏪 The Silver Lining: Store Expansion Continues!
While margins might be feeling the heat, DMart isn't slowing down its growth engine. The quarter saw the addition of 28 new stores - proof that the retail giant is playing the long game despite short-term pressures.
This expansion comes at a time when DMart's stock has cooled off from its September 2024 peak of ₹5,484, currently trading around ₹4,060.50 (down 26%). Some investors might see this as a potential opportunity if the long-term story remains intact.
🤔 Investor's Dilemma: Growth vs Margins
The Q4 results will likely showcase DMart's tightrope walk between:
- ✅ Maintaining revenue momentum
- ✅ Expanding physical presence
- ❌ Protecting profitability in tough conditions
💡 The Bottom Line: Cautious Optimism
As we await Saturday's official numbers, here's our take:
DMart continues to be the steady giant of Indian retail, but even giants feel the pinch of seasonal changes and cost fluctuations. The expansion story remains compelling, but investors should watch margin trends closely for signs of sustained profitability.
This quarter might not be fireworks, but it's building blocks for the future. �
What's your take on DMart's upcoming results? Are you bullish on the expansion strategy despite margin pressures? Let us know in the comments! 👇
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