Ratnadeep Retail IPO

Incorporated in February 1995, Ratnadeep Retail Limited is one of South India’s leading organized food and grocery retailers, operating a diversified retail network across Andhra Pradesh, Telangana, and Karnataka. The company offers over 30,000 SKUs across fresh produce, staples, FMCG, general merchandise, and apparel through its 190 stores under the Ratnadeep (Ratnadeep – Mindful Living and Ratnadeep Select) and National Mart formats. It also operates the RD Click online platform, providing home delivery services across eight cities in South India. The company follows an integrated dual-format retail model catering to a wide spectrum of customers, supported by an extensive sourcing and supply chain network comprising two warehouses, two collection centres, and an in-house fleet of 85 trucks. Ratnadeep also has a strong private label portfolio with 2,321 SKUs across fresh produce, staples, dry fruits, and other grocery categories.

Ratnadeep Retail Limited IPO Overview

Ratnadeep Retail Limited filed its Draft Red Herring Prospectus (DRHP) with SEBI on July 1, 2026, proposing a book-built IPO comprising a fresh issue of equity shares aggregating up to ₹4,000 million and an Offer for Sale (OFS) of up to 14,860,000 equity shares by the promoter selling shareholders. The company may also consider a pre-IPO placement of up to ₹800 million, which would reduce the fresh issue size accordingly. Key IPO details such as dates, price bands, and lot size are yet to be announced. The equity shares are proposed to be listed on BSE and NSE. Motilal Oswal Investment Advisors, Axis Capital, and DAM Capital Advisors are the book-running lead managers, with Kfin Technologies Ltd. as the registrar of the issue. The promoters participating in the OFS are Sandeep Agarwal, Manish Bhartiya, and Mitesh Bhartiya.

Ratnadeep Retail Limited Upcoming IPO Details

Category	Details
Issue Type	Book Built Issue IPO
Total Issue Size	Fresh Issue of ₹4,000 million + OFS of up to 14,860,000 shares
Fresh Issue	₹4,000 million
Offer for Sale (OFS)	Up to 14,860,000 equity shares
IPO Dates	TBA
Price Bands	TBA
Lot Size	TBA
Face Value	₹1 per share
Listing Exchange	BSE, NSE
Shareholding pre-issue	109,243,500 shares
Shareholding post-issue	TBA

Ratnadeep Retail Limited IPO Lots

Application	Lots	Shares	Amount
Retail (Min)	TBA	TBA	TBA
Retail (Max)	TBA	TBA	TBA
S-HNI (Min)	TBA	TBA	TBA
S-HNI (Max)	TBA	TBA	TBA
B-HNI (Min)	TBA	TBA	TBA

Ratnadeep Retail Limited IPO Reservation

Investor Category	Shares Offered
QIB Shares Offered	Not less than 75% of the Offer
Retail Shares Offered	Not more than 10% of the Offer
NII (HNI) Shares Offered	Not more than 15% of the Offer

Ratnadeep Retail Limited IPO Valuation Overview

KPI	Value
Earnings Per Share (EPS)	₹3.36
Price/Earnings (P/E) Ratio	TBD
Return on Net Worth (RoNW)	26.89%
Net Asset Value (NAV)	₹12.50
Return on Equity (RoE)	30.80%
Return on Capital Employed (RoCE)	17.82%
EBITDA Margin	5.01%
PAT Margin	1.65%
Debt to Equity Ratio	1.22

Objectives of the IPO Proceeds

The Net Proceeds are intended to be utilised as per the details provided below:

Particulars	Amount (₹ in million)
Repayment/prepayment of certain loan facilities	400.00
Setting up of new stores under Ratnadeep and National Mart formats	2,600.30
General corporate purposes*	[●]
Total Net Proceeds	[●]

*The amount to be utilised for general corporate purposes shall not exceed 25% of the Gross Proceeds.

Ratnadeep Retail Limited Financials (in ₹ million)

Particulars	31 Mar 2026	31 Mar 2025	31 Mar 2024
Assets	5,243.18	5,101.57	4,282.05
Revenue	22,231.43	19,877.22	16,800.37
Profit After Tax	367.01	(266.92)	158.38
Reserves and Surplus	1,270.35	1,002.76	1,266.05
Total Borrowings	1,688.28	2,010.06	1,276.86
Total Liabilities	3,863.59	4,098.27	3,015.46

Financial Status of Ratnadeep Retail Limited

Ratnadeep Retail Limited IPO Strengths

1. Leading South Indian Organized Retailer with Strong Regional Brand Equity

Ratnadeep Retail Limited has established itself as one of South India’s premier organized food and grocery retailers with a rich operating history spanning over three decades. The company’s long-standing presence across Andhra Pradesh, Telangana, and Karnataka has enabled it to build deep customer relationships, robust sourcing capabilities, and a nuanced understanding of local market dynamics. With 190 stores as of March 31, 2026, the company enjoys strong brand recall and customer trust in its core markets.

2. Integrated Dual-Format Retail Model

Ratnadeep Retail operates through a strategically differentiated dual-format model comprising Ratnadeep (neighbourhood supermarkets under ‘Ratnadeep – Mindful Living’ and premium food stores under ‘Ratnadeep Select’) and National Mart (value-led hypermarket format housing affordable fashion retailer Style Mart). This integrated approach enables the company to cater to a wide spectrum of customers ranging from premium and lifestyle-oriented consumers to value-conscious shoppers, thereby maximizing market coverage and revenue diversification.

3. Wide Product Portfolio with Strong Private Label Presence

The company offers a diversified product assortment of more than 30,000 SKUs across fresh produce, FMCG, staples, general merchandise, and apparel. Ratnadeep’s private label portfolio has grown significantly from 1,305 SKUs in Fiscal 2024 to 2,321 SKUs in Fiscal 2026, contributing approximately 28% of revenue from operations. This strong private label presence enables better margins, product differentiation, and enhanced customer loyalty.

4. Robust Sourcing, Supply Chain, and Warehousing Capabilities

Ratnadeep Retail’s operations are supported by strong execution capabilities across sourcing, supply chain, and merchandising. The company operates two warehouses with an aggregate area of 0.40 million square feet, two collection centres for direct farmer procurement, and an in-house logistics fleet of 85 trucks. This integrated infrastructure enables efficient inventory management, direct procurement at competitive prices, and consistent product availability across the store network.

5. Cluster-Based Store Expansion Driving Operating Leverage

The company follows a disciplined cluster-based expansion approach, deepening presence within existing markets before entering new geographies. This strategy drives multiple structural advantages including higher supply chain efficiency, improved inventory turns, better manpower utilization, and lower logistics costs. The company added 10 new stores in Fiscal 2026, taking the cumulative count to 190 stores.

6. Experienced Promoters and Senior Management Team

Ratnadeep Retail benefits from the extensive experience of its promoters and management team in the retail industry. Promoters Sandeep Agarwal, Manish Bhartiya, Mitesh Bhartiya, Yash Agarwal, and Kavita Agarwal bring over 25 years, 23 years, 7 years, 7 years, and 18 years of experience in the retail sector, respectively. This deep domain expertise provides strategic direction and operational excellence.

More About Ratnadeep Retail Limited

1. Company Overview

Ratnadeep Retail Limited, incorporated in February 1995, is a Hyderabad-based organized food, grocery, and value-fashion retailer with operations across Andhra Pradesh, Telangana, and Karnataka. The company has built a formidable presence in South India’s retail landscape through its customer-centric approach, diversified product offerings, and operational excellence.

2. Retail Formats

The company operates through two distinct retail formats:

A. Ratnadeep Format
Includes ‘Ratnadeep – Mindful Living’ neighbourhood supermarkets and ‘Ratnadeep Select’ premium food stores, catering to everyday grocery shoppers and premium consumers respectively.

B. National Mart Format
A value-led hypermarket chain that houses Style Mart, an affordable fashion retail offering, targeting value-conscious consumers.

3. Store Network and Expansion

As of March 31, 2026, Ratnadeep Retail operated 190 stores across 3 states and 13 cities. The company’s cluster-based expansion strategy has enabled it to build a concentrated presence in key markets, with 150 stores in Hyderabad and 13 stores in Bengaluru under the Ratnadeep format, and 5 stores in Hyderabad under the National Mart format.

4. Product Portfolio

The company offers over 30,000 SKUs across multiple categories:

A. FMCG products (52.50% of revenue)

B. Staples (25.73% of revenue)

C. Fresh produce including vegetables, fruits, dairy, and perishables (13.12% of revenue)

D. General merchandise and apparel (8.65% of revenue)

5. Private Label Strength

Ratnadeep has built a robust private label portfolio with 2,321 SKUs across brands including ‘Magic Garden’ (fresh produce), ‘Ratnadeep’ and ‘Gold’ (staples), ‘8TY 7VN’ (dry fruits and nuts), and ‘Fashio’ (apparel). Private label products contributed 28.23% of revenue from operations in Fiscal 2026.

6. Digital and Omni-Channel Presence

The company’s online platform “RD Click” complements its physical store network, operating across 8 cities including Bangalore, Hyderabad, Vijayawada, and Guntur. The platform processed 0.43 million orders in Fiscal 2026 with an average order value of approximately ₹529.

7. Workforce

As of March 31, 2026, Ratnadeep Retail employed 5,373 permanent employees across business operations, supply chain, merchandising, finance, human resources, IT, marketing, legal, and other corporate functions.

Industry Outlook

1. Indian Food and Grocery Retail Market

The Indian food and grocery retail market represents one of the largest and fastest-growing retail segments globally. India’s overall grocery market is projected to expand from approximately $658 billion to nearly $992 billion by FY30, growing at an impressive 8%+ CAGR. The Indian food retail market is currently valued at over $800 billion with a growth rate of 11% AGCR.

2. Growth Drivers

Several key factors are driving this robust growth trajectory:

A. Rising Disposable Incomes
Increasing household incomes and changing consumption patterns are driving demand for organized retail formats.

B. Shift in Consumer Preferences
Consumers are increasingly preferring convenience, particularly for packaged and ready-to-eat foods.

C. Urbanization and Demographic Dividend
Rapid urbanization and a young population are fueling demand for modern retail experiences.

D. Digital Adoption
India’s online retail market grew 21% year-on-year in FY26 to reach $79 billion.

3. Organized Retail Penetration

The organized retail segment in India is projected to grow at a CAGR of 14.1%, significantly outpacing the unorganized segment which is expected to expand at a CAGR of 9.1%. Organized retail is projected to account for approximately 25% of the total retail market by FY30, reaching INR 38,068 billion.

4. Hypermarket and Value Retail Segment

The Indian hypermarket market is projected to grow from US$30.05 billion in 2025 to US$43.63 billion by 2034, registering a CAGR of 4.23% during the forecast period. This growth is being driven by rising consumer demand and the rapid expansion of organised retail. Tier 2 and Tier 3 cities are emerging as key growth markets, with leading retailers aggressively expanding their presence to tap into increasing disposable incomes and evolving co

5. Kirana Store Dominance

Despite the growth of organized retail, kirana stores still account for approximately 91% of the grocery market, serving the high-frequency, low-average order value baskets that define everyday spending for low to middle-income households. This presents a significant opportunity for organized retailers to capture market share through superior value proposition, product quality, and shopping experience.

How Will Ratnadeep Retail Benefit

1. Capturing the Organized Retail Opportunity
With India’s organized retail segment projected to grow at 14.1% CAGR, Ratnadeep Retail is well-positioned to benefit from the structural shift from unorganized to organized retail.

2. Leveraging the Growing Grocery Market
The company stands to gain from India’s grocery market expansion from $658 billion to $992 billion by FY30, with its strong presence in high-frequency essential categories.

3. Expanding Through Cluster-Based Model
The disciplined cluster-based expansion approach enables Ratnadeep to achieve operating leverage, supply chain efficiencies, and improved store-level profitability as it scales its store network.

4. Benefiting from Tier 2/3 City Growth
With organized retail expanding rapidly in Tier 2 and Tier 3 cities, Ratnadeep’s focus on these high-growth markets positions it to capture emerging consumption demand.

5. Strengthening Private Label Margins
The growing private label portfolio (28.23% of revenue) allows Ratnadeep to enhance gross margins, differentiate offerings, and build customer loyalty in a competitive market.

6. Leveraging Omni-Channel Capabilities
The RD Click platform enables the company to capture the growing online grocery demand while leveraging its physical store network as fulfilment hubs.

7. Optimizing Supply Chain Efficiencies
The integrated sourcing, warehousing, and logistics capabilities provide cost advantages and ensure product freshness and availability, driving customer satisfaction and repeat purchases.

Peer Group Comparison

Name of Company	Face Value (₹)	Revenue (₹ in million)	EPS Basic (₹)	EPS Diluted (₹)	NAV (₹ per share)	P/E Ratio	RoNW (%)
Ratnadeep Retail Limited	1.00	22,231.43	3.36	3.36	12.50	N.A.	26.89
Peer Group
Avenue Supermarts Limited	10.00	88,207.44	5.65	5.65	45.63	92.04	12.14
Trent Limited	1.00	200,742.14	8.37	8.37	48.37	59.89	25.61
Spencers Retail Limited	5.00	17,999.98	(27.66)	(27.70)	N.M	N.M	N.M
Vishal Mega Mart Limited	10.00	129,063.21	1.81	1.79	15.86	65.34	11.32

Key Strategies for Ratnadeep Retail Limited

1. Strengthen Market Position in Food and Grocery Retail

Ratnadeep Retail Limited intends to leverage its operating history of over three decades and long-standing presence in South India to strengthen its market position. The company will focus on high-frequency, daily, and essential consumption categories that drive repeat purchases, customer loyalty, and stable cash flows. Ratnadeep also aims to deepen its assortment, strengthen sourcing capabilities, and enhance price competitiveness across markets while maintaining focus on freshness, quality, and consistency to build long-term customer trust.

2. Scale National Mart as a Large Long-Term Growth Engine

Ratnadeep Retail plans to scale the National Mart format across Tier 2, Tier 3, and high-growth consumption markets through a disciplined, value-led, and calibrated expansion strategy. The company introduced this format in December 2021 and has scaled it to 17 stores across 3 states as of March 31, 2026. From the Net Proceeds, Ratnadeep proposes to utilize ₹2,600.30 million towards fit-out and inventory costs for setting up 50 new stores, positioning National Mart as a key driver of future growth.

3. Scale Network Through Disciplined Cluster-Led Expansion

Ratnadeep Retail intends to continue expanding its store network through a disciplined cluster-led approach, deepening presence within existing markets before entering new geographies. This enables enhanced brand visibility, improved supply chain efficiencies, optimized inventory turns, and operating leverage. The company follows a rigorous approach to evaluating locations based on catchment potential, accessibility, competitive intensity, operating economics, and scalability.

4. Build a Strong Private Label Portfolio

Ratnadeep Retail aims to expand its private label portfolio across high-frequency and high-margin categories such as staples, fresh produce, packaged foods, home care, bakery products, general merchandise, and apparel. The strategy focuses on improving product quality, enhancing gross margins through private label offerings which typically deliver higher margins, and increasing customer loyalty through differentiated offerings across both value and premium segments.

5. Build an Integrated Omni-Channel Retail Ecosystem

Ratnadeep Retail is building capabilities to evolve into an integrated omni-channel retail platform over time. The “RD Click” platform, launched in April 2023, enables customers to place orders through a digital interface with doorstep delivery across 8 cities. The company’s expanding store footprint serves as the backbone of its omni-channel strategy, enabling stores to function as fulfilment hubs to enhance delivery capabilities.

6. Focus on Capital Efficiency, Operational Discipline, and Sustainable Growth

Ratnadeep Retail’s long-term objective is to build a scalable and capital-efficient retail platform driven by efficient execution and operating metrics. The company remains focused on improving return on capital employed (17.82% in FY26), inventory productivity, supply chain efficiency, and store-level profitability across formats. The strategy prioritizes sustainable growth over aggressive expansion with a sharp focus on unit economics and long-term value creation.