Avenue Supermarts (DMART) Investor update summary

Business Performance and Growth Outlook

• Revenue from operations grew 16.7% YoY to ₹57,790 crore (standalone) and 16.9% to ₹59,358 crore (consolidated) in FY25, with consistent revenue share across food, non-food, and general merchandise & apparel categories; Foods contributed over 57% of revenue.

• Like-for-like growth for mature stores was 8.4% in FY25, with revenue per sq ft at ₹33,896 and total retail business area at 17.2 million sq ft.

• EBITDA margin stood at 7.86% (standalone), PAT margin at 5.05%, and net cash from operations exceeded ₹3,700 crore.

• Return on net worth and capital employed moderated to 14.1% and 17.8% respectively, mainly due to accelerated property acquisitions and rising real estate costs.

• Inventory days improved to 29.2 in FY25, while payables days remained stable at 7.2.

Store and Operational Expansion

• Added 50 new stores in FY25, reaching a total of 415 stores, with plans to accelerate expansion, especially in North India, targeting 10-20% annual store base growth.

• Continues cluster-based expansion with significant presence in Maharashtra, Gujarat, Telangana, and Andhra Pradesh.

• Store ROI remains the key metric, with new stores expected to ramp up revenue over time.

• Willingness to take on reasonable debt to fund real estate acquisitions and accelerate expansion, while maintaining a conservative approach.

E-commerce and Subsidiary Performance

• DMart Ready pivoted to a home delivery-focused model, now operating in 25 cities, with a 20.8% sales growth to ₹3,502 crore and a loss of ₹247 crore in FY25.

• E-commerce growth is driven by increased fulfillment centers, focusing on value and efficiency; most orders are delivered within 12 hours.

• Investments in technology are robust and scalable, with no current tech limitations to e-commerce expansion.

• Avenue Food Plaza Private Limited grew sales by 27.9% to ₹226 crore but reported a loss of ₹3 crore.

• Align Retail Trades Private Limited saw sales rise 18.8% to ₹3,322 crore, with PAT up 13.1% to ₹38 crore.