DMart is trimming its online grocery play. Avenue Supermarts, which runs DMart Ready, has scaled back operations in seven cities during the June quarter and now operates in 11 cities, according to the company’s Q1FY27 earnings statement. The move shows a sharper focus on larger metro markets and profitability as competition in quick commerce intensifies.
DMart narrows DMart Ready’s footprint
The company said the cities exited were ‘marginal contributors,’ but it did not name them or give a timeline for the closures. The online business has continued to rely on scheduled delivery and pickup services, staying closer to DMart’s low-price model rather than the heavy discounting used by quick-commerce rivals.
That positioning has become harder to defend as Blinkit, Swiggy, Instamart, and Zepto expand aggressively in urban markets. Their rapid-delivery model has changed consumer expectations for groceries and daily essentials, especially in big cities where speed has become a major selling point.
Competition pressure builds as the founder backs quick commerce
The strategic pullback comes even as DMart founder Radhakishan Damani has increased his exposure to the quick commerce space. Earlier this year, he bought a stake in Eternal, the parent of Blinkit, in open-market transactions, a move that underscores how strongly the rapid-delivery category has gained investor attention.
The shift in DMart Ready also comes alongside slower momentum in the core retail business. Stores older than two years grew 5.5% in the quarter, down from 7.1% a year earlier, while mature stores in large metros stayed flat.
Still, the company reported standalone revenue of Rs 18,343 crore, up 15.1% year-on-year, and net profit of Rs 936 crore, up 12.8% , with EBITDA margin improving slightly to 8.3%. DMart also added three stores during the quarter, taking its total store count to 503.
FAQs
What is DMart Ready?
DMart Ready is Avenue Supermarts’ online grocery delivery service that allows customers to order groceries and daily essentials through digital platforms.
Why is DMart Ready scaling back operations in seven cities?
DMart Ready has reduced its presence in seven cities considered marginal contributors, focusing on key markets and profitability.
What is quick commerce, and how is it impacting DMart?
Quick commerce refers to ultra-fast delivery services for groceries and essentials. Companies like Blinkit, Zepto, and Swiggy Instamart have increased competition in the online grocery market.
Is DMart Ready shutting down completely?
No, DMart Ready is not shutting down completely. The service continues to operate in 11 cities after reducing its footprint in some locations.
