PL capital notes that quick commerce platforms are reducing the price gap with DMart Ready, the online grocery and home essentials platform by retailer
Emphasising that DMart still has price advantage over peers, PL Capital expects the company to report sales growth of 14.5 per cent in the third quarter of the current financial year. The company is expected to see net profit (pat) growth of 10 per cent in Q3FY26, the report note.
The report adds that DMart’s earnings before interest, tax, depreciation and amortisation (Ebitda) is likely to report growth of 12.7 per cent in the recently concluded quarter. PL capital notes that quick commerce (QC) platforms are reducing the price gap with DMart Ready, the online grocery and home essentials platform by retailer.
DMart still has price advantage over peers, but the price gap has reduced by 100 to 500 basis points. The price gap has vanished in personal care and zepto has even lower prices than DMart Ready, the report points out.
“We believe availability of cheap gig workers, closeness to last mile delivery, instant service, strong cash position and reducing price gap with Modern retail and ecommerce does pose a shadow on the growth prospects of non-quick commerce players in the industry,” the report notes.
PL Capital believes that rising clout of quick commerce industry in groceries will prevent any meaningful margin recovery for both modern trade and ecommerce players like DMart. “We believe lower cost dark stores (versus modern trade) and higher inventory turns will enable superior return on capital employed for quick commerce players over medium term,” it highlights.
The report states that PL Capital analysed eight products in foods across major online/ quick commerce platforms. These included tea, atta, rice, noodles, sugar, refined oil, honey among other products. The gap between prices of DMart Ready and other quick commerce platforms for similar products is coming down between August 2025 and December 2025, it highlights.
