DMart approves up to ₹500 crore more for DMart Ready as it narrows to 11 core cities

Avenue Supermarts’ new infusion takes cumulative investment in Avenue E-Commerce close to ₹2,000 crore. DMart Ready reported FY26 revenue growth of 17% to ₹4,094 crore, while losses widened to ₹307 crore; the business is consolidating after expanding its fulfilment network and city footprint.

— Source published Fri, 21 Aug, 2026, 09:57 IST · First seen Fri, 21 Aug, 2026, 09:57 IST · Source Outlook Business

What happened

DMart parent Avenue Supermarts approved up to ₹500 crore for loss-making DMart Ready, taking cumulative online investment near ₹2,000 crore. The e-grocery unit

Key facts

  • Up to ₹500 crore investment in Avenue E-Commerce
  • Nearly ₹2,000 crore cumulative investment in online arm
  • FY26 revenue ₹4,094 crore, up 17% from ₹3,502 crore
  • FY26 loss ₹307 crore versus ₹247 crore in FY25
  • 8 fulfilment centres added in FY26
  • Service footprint expanded to 18 cities before focus narrowed to 11 cities
  • Q1FY27 consolidated net profit ₹860.6 crore, up 11.3% YoY
  • Q1FY27 revenue ₹18,795 crore versus ₹16,360 crore
  • Q1FY27 EBITDA ₹1,499 crore, up 15.4%
  • EBITDA margin 8%; PAT margin 4.6%
  • 3 stores opened in June quarter, reaching 503 stores
  • Store count reached 507 after Navsari and Amravati openings
  • ₹200 crore commercial paper at 6.50% coupon for 90 days

Why this matters

DMart Ready’s retrenchment from seven cities may create partnership, acquisition, or asset-opportunity openings for regional grocers, last-mile platforms, and fulfilment operators in markets it exits.

What to watch

  • Quarterly DMart Ready revenue growth relative to the reported FY26 17% growth rate.
  • Loss trajectory after the ₹307 crore FY26 loss, especially losses as a percentage of e-grocery revenue.
  • Order density, average order value, repeat rates and delivery cost trends in the 11 core cities.
  • Evidence of fulfilment-centre closures, lease exits or redeployment from the seven discontinued cities.
  • Expansion of click-and-collect, store-linked fulfilment or common customer/loyalty programs with DMart stores.
  • Quick-commerce price gaps, delivery-fee changes and expansion by Blinkit, Zepto and Swiggy Instamart in DMart Ready's core catchments.
  • Whether Avenue Supermarts commits further capital once cumulative investment approaches ₹2,000 crore.
  • Shift capital expenditure from new-city launches toward dark-store/fulfilment productivity, inventory availability and delivery-route optimization in the 11 retained cities.
  • Increase integration between physical DMart stores and Ready through store-assisted fulfilment, click-and-collect, common loyalty data and localized assortment.
  • Target high-frequency value baskets, bulk purchases and planned weekly grocery orders where DMart's price credibility can offset slower delivery versus quick-commerce.
  • Rationalize underperforming fulfilment nodes and redirect customer-acquisition spend toward repeat users in dense residential catchments.
  • Use the strengthened balance sheet to improve private-label penetration and negotiate better supplier terms for online-specific pack sizes and promotions.

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