Quick commerce rivals are coming after DMart's turf

Stressed Out

- Pallavi Pengonda

Avenue Supermarts Ltd, the DMart supermarket chain operator, saw its challenges mount in the March quarter (Q4FY25), resulting in worsening pressure on operating profit margin. The grocery retailer contended with heightened competition in the fast-moving consumer goods (FMCG) space, which eroded its gross margin; a surge in entry-level wages driven by a skilled labour shortage; and ongoing investments to enhance service levels.

Put together, these factors dragged down Avenue's standalone Ebitda margin to 6.8%, the lowest in the past ten quarters at least. The metric was down 80 basis points (bps) year-on-year in Q4, versus 53bps and 27bps drop in Q3 and Q2, respectively.