DMart Ready has exited seven cities, now operating in 11, as per CEO Vikram Dasu.
Avenue Supermarts posted 15.1% revenue growth and 12.8% profit growth in Q1FY27.
Company announced a management reshuffle involving two COO positions.
Avenue Supermarts, the operator of DMart, has scaled down its online grocery business, DMart Ready, discontinuing operations in seven cities during the June quarter. The move comes as competition from quick commerce players intensifies in India's grocery market.
CEO Vikram Dasu, in the company's Q1FY27 earnings statement, said, "We continue to deepen our focus in large metro cities while improving our model. During the quarter, we have discontinued our operations in seven cities which were marginal contributors. As of June 30, 2026, we operate in 11 cities." The company did not name the cities it exited or share a timeline for the closures.
4 July 2026
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The decision comes as Blinkit, Swiggy Instamart and Zepto continue to expand their operations across urban markets. DMart Ready has relied on scheduled deliveries and pickup services, following DMart's low-cost pricing model instead of offering deep discounts.
The pullback comes even as DMart founder Radhakishan Damani has increased his exposure to quick commerce. Earlier this year, Damani acquired a stake in Eternal, the parent company of Blinkit, through open market transactions.
Managing Director and CEO Anshul Asawa said stores older than two years posted growth of 5.5% during the quarter, down from 7.1% a year earlier. Growth at mature stores in large metros remained flat, while non-metro locations continued to perform well.
Avenue Supermarts reported standalone revenue of ₹18,343 crore for the quarter ended June 30, up 15.1% year-on-year. Net profit rose 12.8% to ₹936 crore, while EBITDA margin improved marginally to 8.3% from 8.2% a year earlier. The company added three stores during the quarter, taking its total store count to 503.
Company Announces Management Reshuffle
Notably, Avenue Supermarts also informed exchanges on July 11 that its board approved a management reshuffle involving two chief operating officer positions. Bhaskaran N has been re-appointed as whole-time director and chief operating officer for the term from October 17, 2026, to May 31, 2028, pending shareholder approval. He will continue to head retail operations.
Lalit Ahuja will join as COO and senior management personnel from July 13, bringing experience from companies including Philips India, General Mills, Dabur, Godrej Consumer Products, Mars and Apple.
Parvez Vandrewala, the outgoing COO, will move to head of centre of excellence from November 1, retaining his senior managerial personnel status.
