Advertisement
The Gulf conflict has disrupted global supply chains, pushed...
REITs have changed the way commercial real estate is owned a...
What does it take to preserve a real estate legacy while bui...
What really powers the cloud? Behind every Google search, A...
A lot of what defines a home isn’t visible at handover. I...
Avenue Supermarts, which operates the DMart retail chain, has approved an additional investment of up to INR 500 crore in its online grocery subsidiary Avenue E-Commerce Ltd, which operates the DMart Ready business. The investment was approved at the company’s annual general meeting held on August 20, as the subsidiary continues to expand its online operations despite widening losses. Avenue E-Commerce reported 17% revenue growth in FY26 to INR 4,094 crore, while its net loss increased to INR 307 crore. The latest funding could take total investment in the subsidiary to nearly INR 2,000 crore.
Avenue Supermarts Ltd (ASL), the parent company of DMart, has approved an additional investment of up to INR 500 crore in its online grocery subsidiary Avenue E-Commerce Ltd (AEL), which operates the DMart Ready platform. The approval was given at the company’s annual general meeting on August 20, as ASL continues to invest in its online grocery business despite higher losses reported by the subsidiary.
The latest investment will take the total capital deployed by Avenue Supermarts in Avenue E-Commerce to nearly INR 2,000 crore. This includes INR 350 crore invested in the subsidiary during FY26. The additional funding comes as the company continues to develop its online grocery operations alongside its physical DMart store network.
Avenue E-Commerce recorded 17% growth in revenue during FY26, reaching INR 4,094 crore. However, the subsidiary remained loss-making, with its net loss increasing to INR 307 crore during the financial year. Its EBITDA also declined by about 43%, resulting in a larger drag on the parent company’s consolidated operating performance.
The online business forms one of Avenue Supermarts’ key subsidiaries and is focused on grocery and related retail sales through DMart Ready. The company has been expanding the business while continuing to operate its large network of physical stores under the DMart brand.
Avenue Supermarts’ wider retail operations remained profitable during FY26. The company reported consolidated revenue of about INR 67,000 crore for the financial year, while consolidated profit after tax stood at INR 3,224 crore. It generated INR 4,168 crore in cash from operations during the year.
The company’s physical retail network also continued to expand. Avenue Supermarts added 85 stores during FY26, taking its retail business area to about 20.6 million sq ft by March 2026. The expansion of the store network provides the company with an established retail and supply-chain base that also supports its broader grocery operations.
The online grocery business, however, has faced higher operating costs as it scales. The FY26 results showed that while sales increased, profitability weakened, with the subsidiary’s loss reaching INR 307 crore. The latest capital commitment therefore provides additional funding for the continued development and operation of DMart Ready.
The company has also been focusing its online grocery operations on 11 key cities, according to reports on the latest investment decision. The strategy indicates a continued emphasis on building the digital grocery business in selected urban markets rather than relying solely on the expansion of its physical store network.
The additional investment comes amid rapid expansion in India’s online grocery market, where retailers are competing on delivery speed, product availability, pricing and fulfilment infrastructure. For Avenue Supermarts, the investment represents a continued commitment to building an e-commerce channel alongside its established offline retail model.
The latest approval allows Avenue Supermarts to provide further capital to Avenue E-Commerce as it works towards scaling DMart Ready and addressing the operating losses recorded by the subsidiary.
Advertisement
Facebook
Whatsapp
