DMart Ready, the online platform of grocery retailer DMart, has increased its focus on large metro markets, as competition from quick commerce intensifies. In the third quarter (Q3) of FY26, the retailers maintained its presence in 19 cities, after exiting six markets in the first half of FY26.
Analysts expect DMart Ready to cross Rs 4,000 crore in annual revenue at the end of FY26, after closing FY25 with sales of Rs 3,502 crore. Analysts at Nuvama say that DMart Ready is stabilising on the topline front, with Q3 revenue growth rate at around 20% now. This was lower in Q2 at about 16% in terms of revenue growth rate, according to industry estimates.
DMart Ready losses continue to widen
DMart Ready losses, however, have continued to widen, according to analysts, hovering in the region of Rs 14-26 crore (at the Ebitda level) in the last three quarters from Rs 10-11 crore a year ago. This is as DMart Ready focuses on driving faster delivery and convenience as rivals such as Blinkit, Zepto, and Swiggy Instamart up the ante in quick commerce.
Morgan Stanley says in its latest report that while DMart Ready has not increased its geographical presence in Q3, its focus on large cities bodes well, since acceptance of quick commerce is highest in these markets. While DMart offers affordable prices online, much like it does in its stores, deliveries are staggered, experts said. Most of its quick commerce rivals are faster in comparison, an area that DMart Ready may need to address to improve performance, experts said.
Market performance
Shares of Avenue Supermarts closed trade at Rs 3,833.45 apiece on Monday, up 0.75% versus the previous day’s close, after rising nearly 2% intra-day following a surprise beat on margins in Q3. Both gross and Ebitda margins rose 60 bps and 50 bps each in the quarter under review versus the previous year, prompting a thumbs-up from investors. One basis point is one-hundredth of a percentage point.
However, analysts at Goldman Sachs have cautioned that gross margin expansion is not sustainable in the long term as the retailer may not see sharp discounts it saw in Q3 to clear pre-GST inventory. “These are one-off margin gains as FMCG firms were looking to clear channel inventory,” the brokerage said.
On Saturday, the retailer had reported an 18.3% year-on-year rise in consolidated net profit for the third quarter (Q3) of the fiscal 2026 (FY26) to Rs 856 crore. The profit number came as the company reported its slowest like-for-like or same-store sales growth in Q3 at 5.6%. Consolidated revenue grew 13.3% year-on-year to Rs 18,101 core, with revenue growth partially impacted by deflation in staples, the company said.