Retail majors on distinct paths: Reliance surges, DMart resets

INDIA'S TOP TWO organised retailers — Reliance Retail and Avenue Supermarts — have reported contrasting numbers for the quarter ended March 31, 2025 (Q4FY25), reflecting the different strategies employed by the two companies.

- VIVEAT SUSAN PINTO

While a consumption uptick and store rationalisation helped Reliance Retail, which is the country's largest organised retailer, report double-digit growth in consolidated revenue, earnings before interest tax depreciation and amortisation (Ebitda) and net profit in Q4, Avenue Supermarts, the country's second-largest organised retailer, reported a surprise decline in consolidated net profit, amid higher FMCG competition, rising wage costs, and continued investments in service levels.

The company, which is best known for its DMart chain of stores, saw revenue rise 17% versus last year. Q4 Ebitda, however, increased 1.2% only versus last year, its lowest in five quarters.

Ebitda margins of Avenue Supermarts fell 100 basis points year-on-year to 6.4% in Q4, its lowest in five quarters. In contrast, Reliance Retail's Q4 Ebitda margins were within the 8.2-8.5% band it has been reporting for the last five quarters.