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Informist, Thursday, Jul. 10, 2025

By Avishek Rakshit

KOLKATA – The opening of nine new stores during the June quarter, which took the total count of stores to 424, is expected to help retailer Avenue Supermarts Ltd. post decent revenue growth in the June quarter. However, like the past several quarters, the company may continue to face headwinds from e-commerce and quick commerce portals, which are likely to affect sales to some extent, brokerages cautioned.

Avenue Supermarts' net profit is expected to rise 7.7% on year to around INR 8.8 billion for the June quarter, according to the average of estimates by four brokerages. The average of estimates pegs the Apr-Jun revenue at INR 160.4 billion, up 17% on year. Sequentially, analysts estimate the profit to rise 41.2%, and revenue is seen up 10.2%.

The company, in a disclosure on Jul. 2, said its revenue for Apr-Jun is INR 159.3 billion, up 16.2% on year. The revenue declared by the company missed the average of brokerages' estimate for June quarter.

Avenue Supermarts will declare its June quarter results on Friday.

Antique Stock Broking Ltd. estimated the company's net profit at INR 9.6 billion, the highest, and Kotak Institutional Equities estimated it at INR 8.3 billion, the lowest. Kotak Institutional Equities estimated the highest revenue of INR 163.7 billion and Antique Stock Broking estimated it the lowest at INR 159.1 billion.

Avenue Supermarts had reported a net profit of INR 8.1 billion in the year-ago quarter, and its net profit in the March quarter was INR 6.2 billion. The company's revenue was INR 137.1 billion in the year-ago quarter and INR 144.6 billion in the quarter ended March. 

JM Financial said the company's revenue grew 16% on year on account of the new store additions. Sales per square feet, which is a common metric used in the retail industry to assess financial performance, may grow 2% on year to INR 9,200, JM Financial estimated.

Brokerage Nuvama Wealth Management Ltd. said the company is expected to report a gross margin of 14.4% with a negative bias. JM Financial said the company's earnings before interest, tax, depreciation, and amortisation margin may contract 40 basis points on year as employee costs and other expenses may remain high due to increased competition in the retail industry.

Avenue Supermarts is expected to report an EBITDA of INR 13.6 billion in the June quarter, according to the average of estimates from four brokerages. Antique Stock Broking estimated the highest EBITDA at INR 14.2 billion, while Nuvama Wealth Management estimated it the lowest at INR 13.1 billion.

At 1408 IST, shares of Avenue Supermarts traded 0.6% down at INR 4,166.10 on the National Stock Exchange.

Following are the Apr-Jun earnings estimates for Avenue Supermarts Industries based on reports from four brokerages in descending order of the estimate of net profit:

End

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

Edited by Tanima Banerjee

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