India’s retail battle is intensifying as Reliance Retail pushes aggressive expansion while DMart sticks to its low-cost, efficient model.
India’s two largest retail players, Avenue Supermarts (DMart) and Reliance Retail, are vying for long-term dominance in the country’s organized retail market.
DMart’s Focused Model
SEBI-registered analyst Rohit Mehta said DMart operates over 370 stores across India, following an “everyday low cost” strategy supported by a strong, debt-free balance sheet and consistent double-digit profit growth.
He cautioned that its limitation is a slower expansion pace compared to peers.
He highlighted that in the first quarter (Q1), DMart reported revenue of ₹16,359 crore, net profit of ₹772 crore, and an EBITDA margin of 7.9%.
The average store size is 40,000 square feet with annual footfalls of 34 crore. Mehta described DMart as “focused, efficient and profitable — but limited in scale.”
Reliance Retail’s Aggressive Expansion
Mehta said Reliance Retail is India’s largest retailer with over 18,700 stores across multiple formats, backed by Reliance’s financial strength and Jio ecosystem.
He noted the company’s aggressive expansion and acquisitions but pointed out that profit margins are lower due to its scale and diversification.
For Q1, Reliance Retail posted revenue of ₹84,171 crore, net profit of ₹3,271 crore, and an EBITDA margin of 8.5%. Its average store size is 4,000 square feet with 140 crore annual footfalls.
Key Differences and Valuation
According to Mehta, Reliance dominates in scale with 19,000+ stores compared to DMart’s 415, while DMart excels in low-cost efficiency and big-store formats.
Reliance employs about 207,000 people, against DMart’s 18,000. Strategically, Reliance follows diversification, whereas DMart focuses on core retail.
The analyst said DMart commands a premium valuation because of its consistent performance and strong balance sheet, while Reliance Retail was a “growth story”, as it is making larger bets on JioMart, mergers, and its digital commerce play.
Long-term Outlook
Mehta further said while Reliance is looking at scale, diversification and an omni-channel strategy, it has also faced some “legal challenges” in its bid to buy the assets of Future Group.
DMart, meanwhile, is sticking to its familiar playbook with a low-cost model, tight operations, and steady, measured expansion.
He added that since organized retail still accounts for only about 15% of India’s total market, there’s space for both companies to grow.
Who comes out ahead will depend on how well they adapt to changing consumer habits, handle competition, and navigate India’s complex retail landscape.
On Stocktwits, retail sentiment for both Reliance Retail and DMart was ‘neutral,’ with Reliance seeing ‘high’ message volume and DMart registering ‘normal’ activity.
While Reliance’s stock has risen 17% so far in 2025, DMart-parent Avenue Supermarkets’ stock has jumped 31.5% over the same period.
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