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How Radhakishan Damani, the Founder of DMart, is Using Technology to Scale Modern Retail

DMart is adding technology and data to its retail model, expanding stores, improving supply systems, and reshaping DMart Ready around stronger online demand and better economics.

Written By : Pardeep Sharma
Reviewed By : Achu Krishnan

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 built DMart around a simple strategy: keep prices low, control costs, and grow only when the store model makes financial sense. That model now faces a new test. Avenue Supermarts, the parent company of DMart, has more than 500 stores, while online grocery has changed customer expectations across India. DMart has added stronger technology and data systems to the retail model.

Technology Now Sits Closer to the Core Retail Model

CEO Anshul Asawa has made technology and data a clear part of the next phase. The company wants better use of data across categories, stores, and the supply chain. Asawa has said DMart plans to upgrade its technology and data stack so it can use information more effectively across categories, store operations, and category sales.

The scale of the physical business shows why this matters. DMart reached 500 stores in fiscal 2026 and had 503 stores by the first quarter of fiscal 2027. Fiscal 2026 revenue reached Rs. 66,968 Crore, while EBITDA stood at Rs. 5,255 Crore and profit after tax reached Rs. 3,224 Crore. 

The company added 85 stores in the year. A larger network creates more data, but it also creates more room for errors in stock control, supply, and store execution. Better systems can help keep those problems in check.

That approach reflects Damani's original discipline. DMart's own history says the company took eight years to reach its first 10 stores, which helped test profitability and scale before rapid expansion. Technology now adds a stronger information layer to that model.

DMart Ready Takes a More Careful Digital Path

Online grocery presents a different challenge. DMart Ready grew its revenue by 17% in fiscal 2026 to Rs. 4,093.61 Crore. Yet the online unit posted a loss of Rs. 306.53 Crore, up from Rs. 247.37 Crore a year earlier. Those figures show why digital growth alone does not define success for Avenue Supermarts.

The company strengthened home delivery across its markets, added eight fulfillment centers, and put more money into technology, customer interfaces, delivery speed, and order fulfillment. Its service footprint reached 18 cities in fiscal 2026. 

In the first quarter of fiscal 2027, DMart Ready exited seven cities and narrowed its focus to 11 key cities that contribute most of its online business. The strategy puts more weight on areas with stronger demand and gives the business more room to prove its economics before a wider rollout.

Avenue Supermarts has also approved up to Rs. 500 Crore of fresh investment in Avenue E-Commerce. That move could take cumulative investment in the online subsidiary to nearly Rs. 2,000 Crore. The decision shows that the company still sees a place for digital retail, even as losses remain a concern.

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Price Remains the Link Between Stores and Technology

DMart's technology plan makes more sense when viewed through its price strategy. A September 2026 Jefferies comparison of a 45-item grocery basket in Bengaluru found an average DMart Ready discount of 18.8%. Blinkit had 15.7%, while Swiggy Instamart had 13.7% in that basket. The figures show how digital tools can support the low-price position that defines DMart's physical stores.

That point separates DMart's digital path from a race for the fastest delivery. The company has placed more weight on sustainable online economics than on rapid geographic reach. Technology, in this model, serves the retail formula rather than replaces it. Data, fulfillment systems, and customer tools can help protect price discipline while DMart builds a larger store network.

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The Next Test is Store Productivity and Online Economics

Damani's influence remains visible in that balance. Avenue Supermarts has kept the low-cost store model at the center of its digital plan. The company has not treated digital commerce as a separate race for scale. Instead, Avenue Supermarts has put technology around the core business while it tests where online retail can make financial sense.

That makes DMart's technology story less about flashy digital features and more about control. If data can help protect low prices, improve store productivity, and make online grocery more efficient, technology can extend the business model that built DMart into one of India's largest retail chains.

FAQs

1. How is DMart using technology?

DMart is upgrading its technology and data systems to improve category decisions, store operations, supply chains, and customer service.

2. How many DMart stores does the company have?

DMart had 503 stores by the first quarter of fiscal 2027.

3. How did DMart Ready perform in fiscal 2026?

DMart Ready revenue rose 17% to Rs. 4,093.61 Crore, while its loss reached Rs. 306.53 Crore.

4. Why has DMart Ready reduced its city presence?

The company narrowed its focus to 11 key cities with stronger online demand and greater potential for sustainable economics.

5. How much fresh investment has Avenue Supermarts approved for online retail?

Avenue Supermarts approved up to Rs. 500 Crore of fresh investment in Avenue E-Commerce.

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