DMart Q3FY25 Preview: PAT likely to grow over 20%, margins may remain steady

Avenue Supermarts- the parent company of diversified retail chain DMart is set to release its third-quarter results for the ongoing fiscal year 2024-2025 on  January 11 (Saturday). Zee Business research estimates consolidated profit after tax or PAT for the review period to increase by 20.4 per cent to Rs 832 crore versus Rs 691 crore during the same period last year.

Revenue at the retail major is also seen soaring 15.6 per cent year-on-year (YoY) to Rs 15,683 crore in comparison to Rs 13,572 crore in Q3FY24. Furthermore, analysts expect the company to report Rs 1,290 crore in EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortization.  EBITDA is a financial measure that's used to assess a company's financial health and profitability.

Margin, however, is expected to remain steady at 8.2 per cent during the October-December quarter owing to the increase in operational expenses and a decline in gross margins.

Operational income

Analysts at Zee Business research peg income from operations during the reporting quarter to increase to Rs 15,565 crore amid the festive season and higher discounts. The retail chain's store count as of December 31, 2024 increased to 387.

Same-store sales growth or SSSG is expected to come in at 6 per cent in the review period. SSSG is a metric that helps to determine a retailer's sales growth or decline over a period of time.

Key monitorables 

Investors will closely watch the company's plans concerning quick commerce (QC) and store expansion. 

DMart's share price performance

In the last one year, the stock has underperformed with a negative return of around 3 per cent. Last, the stock ahead of its Q3 results tomorrow traded with a cut of around 3 per cent at Rs 3,703 apiece on the BSE.