DMart targets 15% annual store growth while prioritising profitable e-commerce

CEO Anshul Asawa says DMart will use technology and selective leasing to expand its 503-store network, while keeping DMart Ready focused on profitability across 11 cities amid quick-commerce competition.

— Source publishedTue, 28 Jul, 2026, 22:46 IST·First seen Tue, 28 Jul, 2026, 22:50 IST·Source Mint

What happened

DMart CEO Anshul Asawa outlined a technology-led growth plan while retaining the chain’s low-cost model. The retailer targets roughly 15% annual store

Key facts

  • June-quarter consolidated revenue: ₹18,794.5 crore, up 14.9% year-on-year
  • June-quarter net profit: ₹860.4 crore, up 11.3%
  • Mature-store growth: 5.5%, versus 10.8% in the previous quarter
  • Store count: 503
  • Target annual store additions: around 15%, potentially 20%
  • Implied annual additions at 15%: around 75 stores
  • Long-term leased stores: 68
  • Stores added in the past year: 85, including 15 on long-term leases
  • DMart Ready cities: 11 after exiting 7 cities
  • DMart Ready pickup points: around 160
  • DMart Ready delivery target: under 6 hours
  • Price discount target: around 20%
  • Gross-margin target: 20%
  • Volume-share target: nearly 20%
  • Avenue Supermarts shares closed 4.3% lower at ₹3,847.45

Why this matters

DMart’s focus on profitable omni-channel expansion across 11 cities may increase its appetite for technology, logistics, and regional capability partnerships rather than costly scale-driven acquisitions.

What to watch

  • Quarterly net store additions versus the implied 75-store annual run rate.
  • Management commentary on whether growth is tracking 15% or moving toward 20%.
  • DMart Ready city additions, order-frequency trends, delivery economics and stated profitability milestones.
  • Same-store sales growth and evidence of cannibalisation around newly opened locations.
  • Lease-versus-owned store mix, rent-to-sales trends and pre-opening cost growth.
  • Gross-margin and EBITDA-margin resilience amid quick-commerce promotions.
  • Quick-commerce expansion, dark-store density and grocery assortment depth in DMart's major urban markets.
  • Inventory turns, stock-out rates and working-capital movement as the store base expands.
  • Prioritise new stores in markets where distribution density can support both store replenishment and DMart Ready fulfilment.
  • Use selective leasing and smaller or differently configured formats to accelerate entry while limiting capital intensity.
  • Keep DMart Ready concentrated in 11 cities until contribution margins, repeat rates and picking productivity meet targets.
  • Deploy technology for catchment analysis, inventory allocation, demand forecasting and reduced stock-outs as the network scales.
  • Defend the core value proposition through supplier scale and private-label mix rather than broad quick-commerce-style discounting.
  • Test hyperlocal fulfilment options near high-performing stores where online grocery demand is incremental rather than cannibalistic.

Also reported by