Reliance Retail, the retail arm of Reliance Industries (RIL), on Friday posted a 28.3% year-on-year rise in consolidated net profit to Rs 3,271 crore for the quarter ended June 30. Revenue rose 11.3% y-o-y to Rs 73,720 crore on store expansion and digital push, but missed Street expectations of Rs 87,800 crore for the period.
Earnings before interest, tax, depreciation and amortization (Ebitda) rose 10.9% y-o-y to Rs 6,044 crore, falling short of the projected Rs 6,700 crore. The Ebitda margin stood at 8.2%, unchanged from the quarter a year ago.
On a sequential basis, revenue, net profit and Ebitda fell 6.2%, 7.7% and 7.2% from Rs 78,622 crore, Rs 3,545 crore and Rs 6,510 reported in Q4FY25 respectively. While the company’s revenue in the June quarter was impacted by weak performance in the consumer electronics segment, especially in the AC category, due to unseasonal rains, the retailer expects a recovery in the upcoming quarters.
Fashion, grocery lead growth; FMCG set for demerger
In an earnings’ call on Friday, Dinesh Taluja, chief financial officer of Reliance Retail, said that growth was led by grocery and fashion. “As a retailer, we operate across consumption baskets, which gives us a competitive advantage and multiple growth options,” he told investors.
Reliance Retail executive director Isha Ambani said that the company had delivered a resilient performance during the quarter driven by its relentless focus on operational excellence, geographical expansion, and a sharper product portfolio.
The FMCG business delivered topline of Rs 4,400 crore in Q1, Taluja added, which was a growth of two times versus last year. “The retail and FMCG businesses maintain an arm’s length distance from each other. The FMCG business will be demerged from the retail unit in FY26 and will become a direct subsidiary of RIL,” Taluja said.
Despite the mixed performance, the retail business strengthened its footprint and customer engagement, after shutting 2,100 under performing stores in FY25. The company added 388 new stores in the June quarter, taking its total count to 19,592 and operational area to 77.6 million sq ft. While this was lower than the 81.3 million sq ft. in operational area reported a year ago, the retailer said that it had improved revenue per square foot for Q1, rising 16.6% year-on-year to Rs 10,846 from Rs 9,300 reported last year.
Total customer transactions surged 16.5% versus last year to 389 million, while the registered customer base grew to 358 million during the period, Taluja said.
JioMart, its e-commerce platform, saw a 68% quarter-on-quarter and 175% year-on-year growth in daily orders.
“Retail’s business performance has seen significant improvement across operating metrics. We are focusing on strengthening the portfolio of own FMCG brands, which resonate with the tastes of Indian consumers. Our retail business continues to enhance its ability to fulfill everyday as well as specialised needs of all customer cohorts, through a multi-channel approach,” Mukesh Ambani, CMD, RIL, said.
Shein downloads cross 2 million, Q-Com channel reports 2-fold growth
The new Shein India app, selling fast fashion, has crossed 2 million app downloads within six months of re-launch and now has over 20,000 live options, according to the latest earnings report from Reliance Industries, reports PTI.