Reliance Retail Q1 net profit down 14%; FMCG revenue doubles
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Reliance Retail reported a net profit of ₹2,805 crore for Q1FY27, down 14.1% year-on-year, despite a revenue increase of 7.4% to ₹90,408 crore. The decline in profit margins is attributed to investments in digital commerce, which are expected to enhance future growth. The company continues to see strong consumer engagement and plans to double operating EBITDA over the next three years, focusing on its JioMart platform.
Mumbai/Bengaluru: Reliance Retail, the retail arm of Reliance Industries Ltd, on Friday reported a net profit of ₹2,805 crore for the April-June quarter (Q1FY27), down 14.1% year-on-year, according to an exchange filing. Revenue rose 7.4% year-on-year to ₹90,408 crore in the quarter.
Reliance Retail operates across grocery, consumer electronics, fashion, lifestyle, and online commerce.
“The number of transactions is growing much faster than revenue, and that's a function of the growing contribution of digital commerce in overall revenues,” said Dinesh Taluja, chief financial officer of Reliance Retail, in the investor call.
Reliance Retail reported a net profit of ₹2,805 crore for Q1FY27, which represents a decrease of 14.1% year-on-year.
The EBITDA margin declined by 80 basis points to 7.9% due to planned investments aimed at scaling digital commerce, which increased fixed costs.
The FMCG revenue of Reliance Consumer Products Ltd doubled to ₹8,600 crore in the June quarter from the previous year.
The overall revenue growth of 7.4% year-on-year was supported by the growth across major consumption baskets including grocery, fashion, and consumer electronics.
Investors should weigh the potential for digital commerce growth against the current pressure on profit margins, as consumer engagement and market share gains remain strong.
Ebitda, or earnings before interest, taxes, depreciation and amortization, stood at ₹ 6,309 crore, down 1.1% y-o-y. Ebitda margin was at 7.9%, down 80 basis points due to a planned investment in scaling digital commerce.
The company said it saw a 11.6% YoY overall revenue growth adjusted for demerger of consumer brands business. Reliance Industries officially demerged FMCG business into a direct subsidiary, New Reliance Consumer Products Ltd (New RCPL), in December, 2025.
“Going ahead, the key monitorable will be the pace at which these digital investments begin delivering operating leverage and margin expansion, as consumer engagement and market share gains remain firmly intact,” said consumer & midcaps analyst Sandeep Abhange at LKP Securities.
The retail business added 252 new stores during the quarter, taking its total footprint to 20,169 stores. “ When we look at omni-channel customers, we are getting higher wallet share from omni-channel customers,” Taluja said. Omni-channel customers spend 2.7x compared to pure offline customers.
For the retail business, the company said that its three-year objective is to double operating Ebitda through growth and better economics. The company identified JioMart as its principal growth platform for the next four quarters.“All the three major consumption baskets, whether it's grocery, fashion, or electronics, all three of those consumption baskets have grown in double digits,” Taluja said.
The consumer electronics segment reported a 16% like-for-like growth rate from a year ago. The quick fashion commerce platform Ajio Rush orders grew 136% q-o-q in the period.
The digital commerce business reported a major uptick in apparel and footwear sales. The segment now makes 27.3% digital sales, up 490 bps y-o-y.
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