Avenue Supermarts has approved a ₹500 crore investment in its online grocery arm, DMart Ready, to support digital operations. While the online unit reported a 17% revenue jump to ₹4,094 crore in FY26, net losses widened to ₹307 crore. Investors are tracking whether the company’s new strategy to focus on 11 key cities can drive profitability amid intense competition from quick-commerce players.
Avenue Supermarts, the operator of the DMart retail chain, has approved a fresh investment of up to ₹500 crore into its online grocery subsidiary, Avenue E-Commerce, which operates the DMart Ready platform. The decision, finalized at the company's annual general meeting held on August 19, 2026, aims to provide capital for infrastructure and working capital needs.
This investment highlights the company's ongoing effort to build its digital presence, but it also reflects a period of financial pressure for the online arm. For the fiscal year 2026, DMart Ready reported revenue of ₹4,094 crore, a 17% increase from the previous year. Despite this growth in sales, the unit’s losses deepened to ₹307 crore, compared to ₹247 crore in FY25.
To address this, management is shifting its approach. The company is narrowing its operational focus to 11 key cities that account for the vast majority of its online business. The goal of this targeted strategy is to optimize resources and demonstrate a clear path to profitability in a sustainable e-commerce model, rather than spreading thin across too many locations.
For investors, the broader context remains challenging. The retail sector, particularly grocery, is facing significant pressure from the rapid rise of quick-commerce platforms that offer very fast delivery times. At the same time, Avenue Supermarts continues to spend heavily on its physical business, having opened 85 new stores in FY26 to reach a total of 500 outlets. This rapid physical expansion, combined with the losses in the online arm, places pressure on the company's consolidated margins and cash flow.
Avenue Supermarts' share price closed at ₹3,960 on August 20, 2026. Looking ahead, investors are likely to watch whether the strategy of focusing on 11 core cities helps the online arm reduce its burn rate and improve unit-level economics, while also tracking how the company manages the cost of its aggressive physical store rollout alongside its digital investments.