Opening Hook
When DMart calls an investor meet, expectations soar like their store count. The king of discounts showed double-digit revenue growth, but margins went on a crash diet, and their e-commerce arm bled money like a leaky faucet. Analysts walked in expecting fireworks; what they got was a mix of store expansion flex and margin shrinkage reality check.
Here’s what we decoded from the corporate storytelling session they called a presentation.
At a Glance
- Revenue ₹57,790 Cr (Standalone) – up 16.7%, proving Indians still love a good deal.
- PAT ₹2,927 Cr – up 8.6%, margins down because costs don’t listen to management speeches.
- EBITDA ₹4,543 Cr – up 10.8%, margin dropped to 7.9% (diet plan working too well).
- Store Count – 415 stores, because opening one every week is apparently a hobby.
- DMart Ready (E-Com) – losses widened, still not “Ready” for profits.
- Stock Reaction – bulls confused, bears hopeful.
The Story So Far
DMart’s journey is a Bollywood drama: from humble grocery giant to India’s retail darling. FY24 saw strong growth, and FY25 followed suit with revenue rocketing but profit growth slowing. Operating margins have been under pressure thanks to rising employee and other costs (inflation doesn’t spare retailers either).
Meanwhile, DMart Ready continues to burn cash like a Diwali cracker factory, but management insists it’s an investment in the future. Investors nod, while secretly checking e-commerce burn rates.
Management’s Key Commentary
- On Store Expansion: “Cluster strategy continues.”
Translation: We’ll keep opening stores till we run out of cities.* - On Margins: “Slight decline due to higher expenses.”
Translation: Discounts for customers, pain for us.* - On E-Commerce Losses: “We’re focused on long-term value.”
Translation: Expect losses for a while—maybe forever.* - On Growth: “Demand remains resilient.”
Because Indians will never stop buying cheap atta. - On Costs: “Other expenses grew 25%.”
Because everything is expensive—except what we sell.
Numbers Decoded – What the Financials Whisper
| Metric | FY25 | YoY Change | What It’s Really Saying |
|---|---|---|---|
| Revenue – The Magnet | ₹57,790 Cr | ▲16.7% | People still crowd DMart aisles like it’s a festival. |
| EBITDA – The Slimmed Hero | ₹4,543 Cr | ▲10.8% | Grew, but margins shrank. |
| PAT – The Survivior | ₹2,927 Cr | ▲8.6% | Profit grew slower than store count. |
| EBITDA Margin – The Dieter | 7.9% | ▼42 bps | Shrinking faster than my patience with e-commerce losses. |
Analyst Questions That Spilled the Tea
- Analyst: “Why are margins falling?”
Management: “Cost pressures and strategic investments.”
Translation: Expenses are out of control, but we’ll call it strategy.* - Analyst: “When will DMart Ready turn profitable?”
Management: “We’re building for the long term.”
Translation: Don’t hold your breath.* - Analyst: “What’s the expansion plan?”
Management: “We’ll continue cluster expansion.”
Translation: More stores, more rent, more hope.*
Guidance & Outlook – Crystal Ball Section
Management sees continued revenue growth, aggressive store expansion, and steady consumer demand. They’re betting big on cluster strategy and believe e-commerce losses are a temporary evil.
Outlook: Top line strong, margins meh, DMart Ready still a black hole.
Risks & Red Flags
- Margin Pressure – expenses growing faster than sales.
- E-Commerce Losses – Avenue E-Commerce reported -₹247 Cr PBT.
- Competition – Reliance Retail and Amazon lurking.
- Execution Risk – too many stores too fast could backfire.
Market Reaction & Investor Sentiment
Investors love growth, but hate shrinking margins. Stock likely to wobble—bulls chanting “growth!”, bears chanting “margin erosion!”. Traders just playing both sides.
EduInvesting Take – Our No-BS Analysis
DMart is still the god of offline retail, with unmatched cost control and scale. However, rising expenses and falling margins are red flags investors can’t ignore. The e-commerce segment is bleeding cash with no turnaround in sight, while competitors like JioMart wait to pounce.
For long-term investors, DMart remains a solid grocery bet—but don’t expect margins to magically bounce back overnight.
Conclusion – The Final Roast
DMart’s FY25-26 pitch was a mix of revenue fireworks, margin shrinkage, and e-commerce pain. The company is opening stores like there’s no tomorrow, but profits are growing slower than the store count. Next year? Expect more stores, more sales, and hopefully fewer excuses.
Written by EduInvesting Team
Data sourced from: Company concall transcripts, investor presentations, and filings.
SEO Tags: Avenue Supermarts, DMart Q1FY26 concall decoded, earnings call analysis, EduInvesting humour finance, DMart results insights
