Mon Jan 13 10:13:56 UTC 2025: ## DMart Shares Plunge After Weak Q3 Earnings, CEO Change Announced

**Mumbai, India** – Shares of Avenue Supermarts, the parent company of the popular retail chain DMart, plummeted over 5% at the market open today following a weaker-than-expected Q3 earnings report. The company reported a 4.9% increase in net profit to Rs 723.54 crore, but this fell short of analyst expectations due to lower-than-expected gross margins and increased retail costs. Revenue did rise by 17.6% to Rs 15,973 crore. The EBITDA margin also slipped from 8.3% to 7.6%.

Several brokerages downgraded their ratings and target prices for DMart. JPMorgan lowered its target price to Rs 4,150, citing higher-than-expected employee costs, while Morgan Stanley maintained its ‘underperform’ rating with a target price of Rs 3,260. Other firms like Nuvama Institutional Equities and Motilal Oswal also reduced their target prices, citing increased competition and pressure on margins. Despite the negative outlook from some analysts, Motilal Oswal maintained a ‘buy’ rating.

Adding to the negative sentiment, the company also announced that Managing Director and CEO Neville Noronha will step down in January 2026. Anshul Asawa, a veteran from Unilever, will succeed him. While some analysts expressed surprise at the CEO change, others viewed it as a significant development.

The decline in DMart’s share price reflects concerns about its ability to maintain growth and margins in a fiercely competitive market. The company’s management attributed the weak performance to increased discounting in the FMCG sector and rising competition from quick-commerce players. Investors will be closely watching DMart’s performance in the coming quarters.

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