DMart founder Radhakishan Damani leverages tech to scale retail

Key Takeaways – 

• DMart is using technology and data to improve store operations, supply chains, and retail decisions.

• DMart Ready has grown its revenue but still faces losses, which has led to a more focused city strategy.

• Avenue Supermarts continues to invest in digital retail while keeping low prices and cost control at the center.

Radhakishan Damani established DMart around a straightforward approach: maintain low prices, manage expenses carefully, and expand only when the retail store framework makes economic sense. That model now faces a fresh challenge. Avenue Supermarts, the parent company of DMart, operates more than 500 stores, and online grocery shopping has shifted consumer expectations across India. To adapt, DMart has integrated more robust technology and data systems into its retail framework.

Technology Now Sits Closer to the Core Retail Model

Chief Executive Officer Anshul Asawa has integrated technology and data as a central component of the company’s next phase of growth. The organization aims to leverage data more effectively across diverse product categories, individual store locations, and the supply chain. Asawa noted that DMart intends to upgrade its technology and data infrastructure to utilize information more efficiently across merchandising, store execution, and category sales.

The sheer scale of the physical business highlights the necessity of these upgrades. DMart surpassed the 500-store milestone in fiscal 2026, operating 503 locations by the first quarter of fiscal 2027. During fiscal 2026, revenue reached Rs. 66,968 Crore, EBITDA was recorded at Rs. 5,255 Crore, and profit after tax climbed to Rs. 3,224 Crore. 

The firm opened 85 new stores during the year. While a broader network generates greater volumes of data, it simultaneously increases the potential for operational oversights in inventory management, supply chains, and store-level execution. Advanced systems help mitigate these risks.

This methodology mirrors Damani’s initial discipline. According to DMart’s corporate history, it took eight years to establish the first 10 stores, allowing the company to thoroughly evaluate profitability and scalability prior to rapid expansion. Technology currently serves as an enhanced informational layer supporting that proven model.

DMart Ready Takes a More Careful Digital Path

The digital grocery sector presents distinct obstacles. DMart Ready increased its revenue by 17% during fiscal 2026, totaling Rs. 4,093.61 Crore. Nonetheless, the online division reported a net loss of Rs. 306.53 Crore, widening from Rs. 247.37 Crore in the preceding year. These results demonstrate that digital expansion alone does not guarantee financial success for Avenue Supermarts.

To bolster its digital operations, the company expanded home delivery coverage across its operating regions, added eight fulfillment facilities, and increased capital allocation toward technology, user interfaces, delivery speed, and order fulfillment processes. Its operational footprint spanned 18 cities in fiscal 2026. 

By the first quarter of fiscal 2027, DMart Ready withdrew from seven cities, concentrating its efforts on 11 core urban centers that generate the majority of its e-commerce revenue. This revised strategy prioritizes high-demand markets, giving the business adequate space to validate its unit economics prior to any broader geographic rollout.

Additionally, Avenue Supermarts sanctioned up to Rs. 500 Crore in new capital for Avenue E-Commerce. This action brings total cumulative investments in the digital subsidiary to nearly Rs. 2,000 Crore, signaling that management remains committed to online retail despite ongoing financial losses.

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Price Remains the Link Between Stores and Technology

DMart’s technology strategy becomes clearer when examined through the lens of its pricing framework. A price check conducted by Jefferies in September 2026 evaluated a 45-item grocery basket in Bengaluru and revealed an average discount of 18.8% at DMart Ready. By comparison, Blinkit offered a 15.7% discount, while Swiggy Instamart provided 13.7% for the same basket. These findings illustrate how digital tools reinforce the value proposition that defines DMart’s brick-and-mortar storefronts.

This factor distinguishes DMart’s digital journey from a simple race for ultra-fast delivery times. The company prioritizes sustainable online unit economics over aggressive geographic expansion. Within this framework, technology serves and supports the retail strategy rather than overriding it. Data analytics, supply chain solutions, and customer-facing applications help safeguard price leadership while DMart continues to expand its physical footprint.

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The Next Test is Store Productivity and Online Economics

Damani’s enduring philosophy remains evident in this operational balance. Avenue Supermarts has maintained its low-cost physical store model at the heart of its digital strategy, avoiding a reactionary dash for online scale. Instead, the firm has positioned technology around its core enterprise to determine where digital commerce can achieve long-term viability.

Consequently, DMart’s technological evolution is less about adopting trendy digital features and more about tightening operational control. If data-driven insights can preserve low price points, enhance store-level productivity, and streamline digital grocery fulfillment, technology will successfully extend the foundational business model that built DMart into one of India’s leading retail chains.

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