DMart’s Slow Bet Could Eventually Pay Off

Quick commerce is reshaping retail, but DMart is refusing to join the 10-minute delivery race. DMart Ready has cut its presence from 24 cities in FY25-26 to 11 in Q1FY27, exiting weak markets. While Blinkit, Instamart and Zepto chase expansion, DMart is focusing on profitable clusters, carefully, a The online business remains loss-making. DMart Ready reported revenue of Rs 4,093.61 crore and a consolidated loss of Rs 306.53 crore in FY26, versus revenue of Rs 1,667.21 crore and a loss of about Rs 142 crore in FY22. Yet its PBT margin improved from -8.52% to -7.49%. DMart’s financial strength is a major advantage. In Q1FY27, consolidated EBITDA was Rs 1,527 crore, with an 8.3% margin, while PAT was Rs 936 crore, at a 5.1% margin. This gives it room to absorb online losses. Delivery economics favour DMart. For some quick-commerce players, delivery costs can equal 12-15% of a Rs 200 basket. DMart Ready’s estimated burden is only about 1.5% on a Rs 2,000 order. Its slower model suits planned, larger household purchases better than impulse buying. The bigger issue is its core business. DMart reached 503 stores and more than 20.7 million sq ft of retail space, with management targeting about 1,000 stores by 2030. However, older stores in large metros were flat in Q1FY27, while non-metros grew. This suggests quick commerce is challenging DMart. Valuation is another concern. DMart’s EV/EBITDA stood at 45.8x, while ROCE and ROE were 17.18% and 12.94%. The stock is expensive. For shareholders, the picture is mixed but potentially positive. Avoiding a costly delivery war can protect margins, while expansion can sustain growth. The risks are slower digital growth and metro market-share pressure. If DMart improves Ready’s margins without abandoning its value proposition, its “slow” strategy could create sustainable shareholder value.