Archive · 21 Jul 2026
DMart Faces Pressure from Quick Commerce Growth
DMart is a big retail store chain in India.
It has been adding new stores, but its older stores in big cities are not doing as well because people are shopping more online.
Quick delivery services like Blinkit and Zepto are making it hard for DMart to compete.
DMart's online grocery service, DMart Ready, has even left some cities because it's not doing well.
Experts think the competition will stay strong, but they still believe DMart can grow in the long run by opening more stores and improving its products.
However, they also think DMart's profits might go down a bit in the next few years because of all the competition.
DMart added 85 stores in FY26 and plans to add 150 by FY28.
Same-store sales growth slowed to 5.5% in Q1FY27 from 10.8% in Q4FY26.
DMart Ready exited 14 cities in 15 months, now operating in 11 cities.
Revenue grew 15.1% year-on-year in Q1FY27, mainly from new store additions.
Analysts expect intense competition from quick commerce to persist, impacting margins.
- Who
- DMart, a retail chain in India
- What
- Facing pressure from quick commerce platforms like Blinkit and Zepto
- When
- Q1FY27 and future projections
- Where
- India, particularly metro and non-metro markets
- Why
- Intense competition from 10-minute delivery models and changing consumer preferences
Optimistic View
Cautious View
Long-term Prospects
Optimistic View
Analysts remain positive about DMart's long-term prospects due to steady store expansion and healthy like-for-like sales growth.
Cautious View
Brokerages expect intense competition from quick commerce to keep pressure on DMart's same-store sales and margins in the near term.
Digital Business Strategy
Optimistic View
DMart's measured approach to digital retail is seen as pragmatic, focusing on improving unit economics and home delivery efficiency.
Cautious View
The digital business is viewed as a defensive strategy to protect urban market share rather than a primary growth driver.
- Store Additions
- 85 stores added in FY26, expected to add 150 by FY28
- Quick Commerce Market Growth
- Expected to grow to $60 billion by FY31
- DMart Ready Exits
- Exited 14 cities in 15 months, now operates in 11 cities
- Revenue Growth
- 15.1% year-on-year in Q1FY27
- Same-Store Sales Growth
- Slowed to 5.5% in Q1FY27 from 10.8% in Q4FY26
- EBITDA Margin Projection
- Expected to decline to 7.4% in FY27 and 7% in FY28
- Non-Convertible Debentures
- Rs 10 billion worth of NCDs approved for store expansion