Hyderabad supermarket chain Ratnadeep Retail files ₹400 crore IPO papers

Ratnadeep Retail, the Hyderabad-based supermarket chain operating across Andhra Pradesh, Telangana and Karnataka, has filed a draft red herring prospectus with the Securities and Exchange Board of India. The proposed IPO combines a fresh issue of equity shares worth up to ₹400 crore with an offer for sale of up to 1,48,60,000 equity shares from promoter selling shareholders.

The company operates 190 stores under two formats: Ratnadeep supermarkets and National Mart, which includes Style Mart, a line focused on affordable fashion. That dual-format strategy gives it two customer segments from the same shelf space, though it also adds complexity in inventory management.

For the financial year ended March 2026, Ratnadeep reported revenue from operations of ₹2,223 crore and a profit after tax of ₹36.7 crore. That works out to a net margin of roughly 1.7%, a thin cushion for a retailer planning an aggressive expansion. The company proposes to spend ₹260 crore from the IPO proceeds on opening new stores. Another ₹40 crore will go toward repaying or prepaying existing loans. The balance will cover general corporate purposes.

The grocery retail segment in southern India has grown more crowded in recent years. Organized chains such as DMart and Reliance Retail compete for the same middle-class customer. Quick-commerce platforms like Zepto and Blinkit have pushed into Hyderabad and other cities, offering 10-minute delivery of staples. Ratnadeep's 1.7% net margin leaves limited room for store-level mistakes. Each new location will need to reach break-even quickly to avoid dragging on overall profitability.

Ratnadeep's geographic concentration in three states gives it distribution density that a pan-India chain would struggle to match at the same cost. That same concentration leaves it exposed to regional demand swings. The company did not specify a target store count or a timeline for the expansion in the DRHP filing.

The promoters of the company are Sandeep Agarwal, Manish Bhartiya, Mitesh Bhartiya, Yash Agarwal and Kavita Agarwal. They are selling a portion of their holdings through the OFS component, which gives some existing shareholders an early exit. Investors will gauge the listing price against the company's regional scale and thin margins when the price band is disclosed.

The DRHP did not include a price band or a target listing date. The company will update those details in subsequent filings. SEBI's review process now begins.