Some Keen Observations on DMart 
Recently, I visited a towel vendor who supplies to DMart. Since I’m in the same business, I asked about the pricing. He told me that DMart buys the towels at ₹170 and sells them for ₹249.
As an investor, this caught my attention. A quick mental calculation shows that DMart is earning a gross margin of 35–40% on a fast-moving, non-fashion-sensitive product like towels! These are restocked every 30 to 45 days, so there’s no dead stock, and minimal risk. If they’re earning this kind of margin on such safe items, that’s excellent.
But towels are just one example.
Over the past few months, I’ve visited four different DMart stores in four different cities, and my observation is clear: DMart is evolving.
They’re no longer just about low prices—they’re now tapping into style and fashion.
For instance, I went to the jeans section. Earlier, they had only one style. Then came two. Now they offer four to five different fits, catering to different customer preferences. That’s a significant shift.
What’s more, they’ve started displaying fashion trend guides in the store. Since there’s no sales assistance and customers shop on their own, this kind of self-guided education is really smart. It empowers the buyer.
Another key point: I checked with several vendors supplying to DMart. Most of them are contract manufacturers—not your usual retail suppliers. And this matters.
Traditional vendors who supply to local retailers (like MBOs) deal with things like 60-day credit terms and product returns, which increases their cost. Naturally, they need higher margins to stay afloat.
DMart, on the other hand, pays vendors within 7 days and rarely returns goods. This means vendors can operate with lower margins, and DMart gets a cost advantage by cutting out middlemen. They’re sourcing directly and efficiently.
Finally, something unexpected:
At one of the DMart stores, I noticed an Audi and a few premium SUVs like the Harrier and Fortuner parked outside.
That surprised me.
I used to think upper-middle-class consumers avoided DMart because of its “cheap” image. But that perception seems to be changing. People are beginning to accept that DMart can offer good quality at fair prices—and they’re shopping accordingly.
I believe this evolution is a smart, strategic shift for DMart. They’re managing costs, expanding into fashion, and slowly reshaping their customer base.
Disclaimer: DMart is one of my top holdings.
