DMart Expands Store Network with Two New Locations in Telangana and Andhra Pradesh

Avenue Supermarts Limited (DMart) continues its rapid growth, opening two new stores in Telangana and Andhra Pradesh on March 24, 2026. These latest additions bring the company's total store count across India to 469, reinforcing its strategy to broaden its physical retail presence and market reach in key regions.

What Happened

Avenue Supermarts Limited, the operator of the DMart retail chain, announced the opening of two new stores on March 24, 2026. One store is located in Telangana and the other in Andhra Pradesh. These new outlets increase DMart's total store count nationwide to 469.

Why It Matters

These store openings demonstrate DMart's commitment to expanding its physical footprint. The move is intended to enhance market access and make its affordable products more readily available to consumers in these areas.

Background

Avenue Supermarts has consistently pursued an aggressive store expansion strategy, typically aiming to add 15-20% more stores annually. This approach prioritizes building a vast physical network, often by owning store properties to manage long-term rental costs. The company had planned to open approximately 50 new stores in FY26, with a strategic focus on regions like North India.

Recent expansion activity shows a fast pace of openings. In March 2026 alone, DMart announced multiple openings. Before these latest two, the company opened 8 stores on March 8, reaching a total of 461, and 2 more on March 12, bringing the count to 463. Earlier in February, new stores also opened in Telangana and Tamil Nadu, illustrating ongoing growth.

Impact of New Stores

Increased Market Access: DMart's growing store network in Telangana and Andhra Pradesh will make its products more accessible to a larger customer base in these regions.
Enhanced Brand Presence: The expansion strengthens DMart's position as a leading value retailer in the Indian market.
Operational Growth: Adding new stores tests and enhances the company's capacity to manage a larger, more complex retail operation.
Revenue Potential: More stores translate directly into opportunities for increased sales volume and revenue.

Risks to Watch

Avenue Supermarts recently received a ₹1 Lakh penalty for a Food Safety and Standards Act violation concerning a substandard product sold in one of its stores.

Competitive Landscape

DMart faces intense competition from major players like Reliance Retail, which operates thousands of outlets and is aggressively expanding. Online competitors such as JioMart, BigBasket, and quick-commerce platforms like Blinkit and Zepto are also challenging DMart's market share by offering convenience and rapid delivery. While DMart focuses on value and its physical store presence, these rivals are leveraging digital channels and speed to attract consumer attention.

Recent Financials

In the third quarter of FY26, DMart reported consolidated net profit rose 18.3% year-on-year to ₹856 crore. Consolidated revenue from operations grew 13.3% year-on-year to ₹18,101 crore during the same period. The company added 10 stores during Q3 FY26, bringing its total to 442 stores as of December 31, 2025.

Future Focus

DMart's expansion plans will be closely monitored, especially the pace and locations of future store additions to gauge its progress against targets. The company's ability to achieve strong same-store sales growth (SSSG) – a measure of sales from existing stores – will be key, amid increasing competition and evolving consumer preferences. Profitability trends, including margins like earnings before interest, taxes, depreciation, and amortization (EBITDA) and profit after tax (PAT), are also important to watch, as they have faced pressure from rising costs and competition. Attention will be on how DMart adapts its strategy in response to aggressive rivals like Reliance Retail and the growth of quick-commerce platforms. The performance of DMart Ready, its e-commerce arm, in the competitive online grocery market will also offer insights.