India's DMart operator slides after reporting lower quarterly profit

Avenue Supermarts

14/07/2025 05:34

** Shares of Avenue Supermarts AVEU.NS, which operates DMart chain of supermarkets, fell 2.9% to 3,941.5 rupees

** Stock on track to log worst day in two months; set for nine straight sessions of losses

** Co, on Friday, reported first-quarter net profit of 7.73 billion rupees ($89.90 million), down from 7.74 billion rupees a year ago, hurt by higher operating costs and intense competition from quick-commerce players

** EBITDA margins at 7.9% vs 8.7% a year ago; AVEU says deflation in staples and non-food items hurt sales growth

** JP Morgan analysts say EBITDA margins missed estimates, on muted demand and intense competition; expect store additions and e-commerce capacity expansion to hit margins in near term

** Morgan Stanley analysts say AVUE's slow response to growing competition in the industry is starting to hurt business; see risks to topline growth

** AVEU up 11% so far in 2025

($1 = 85.9840 Indian rupees)

 (Reporting by Manvi Pant in Bengaluru)

 ((Manvi.Pant@thomsonreuters.com; +918447554364;))