Reliance Retail on Friday reported a nearly 22% year-on-year (y-o-y) growth in its net profit at Rs 3,457 crore in the September quarter (Q2) of FY26, driven by GST cuts and festive buying across categories. Net revenue increased 19% y-o-y to Rs 79,128 crore, though sequentially both profit and revenue grew in single digits, at 5.7% and 7.3% each, as the quarter did see GST-related disruptions and subdued buying before the introduction of new tax regime on September 22.
Earnings before interest, tax, depreciation and amortisation (Ebitda) stood at Rs 6,624 crore, up 16.7% y-o-y and 9.7% sequentially, with margins marginally down (10 basis points) at 8.4% versus a year ago in Q2. Sequentially, Ebitda margins were 8.2%; up 20 basis points. One basis point is one hundredth of a percentage point.
“Our focus on operational excellence, investments in stores and digital platforms, helped deliver a strong performance. GST rate changes will further accelerate consumption growth,” Isha Ambani, executive director, Reliance Retail Ventures, said.
The Reliance Consumer (RCPL) spin-off into a direct subsidiary of Reliance Industries (RIL) is under progress, and is awaiting a final order from the National Company Law Tribunal (NCLT), Dinesh Taluja, CFO, Reliance Retail said in a post-earnings call on Friday. The restructuring comes ahead of Reliance Retail’s likely IPO in the future. The re-organisation will see RCPL renamed as New Reliance Consumer Products (New RCPL), the company said.
In the September quarter, the fast-moving consumer goods (FMCG) business under RCPL reported gross revenue of Rs 5,400 crore. Its cola brand Campa sustained double-digit market share in key markets, with positive growth momentum across categories led by Campa and Independence, he said.
Reliance Retail also expanded its store footprint with 412 new store openings, taking the total store count to 19,821, with area under operation at 77.8 million sq ft, a decline of 2% versus the year-ago period. Reliance Retail’s registered customer base grew 12.8% y-o-y to 369 million, while the number of transactions grew 26.5% y-o-y to 434 million.
The retailer’s grocery business delivered 23% y-o-y growth, supported by festive buying and strong sales across core categories. Packaged foods grew 20%, staples 18%, and home and personal care 13%, while fruit and vegetable volumes surged 62% versus last year.
Reliance’s consumer electronics business grew 18% y-o-y, aided by the GST rate reduction on September 22, which spurred post-announcement buying, Taluja said.
Laptops saw a 37% rise in sales, mobiles 22%, and appliances 10% versus a year ago, led by pent-up demand, Taluja added. Digital stores maintained strong growth momentum through the festive build-up despite temporary demand pauses before the GST change, he said.
Premium food format Freshpik posted 35% like-for-like growth, while Metro Wholesale maintained its momentum with 20% growth in commodities and 15% growth across home care, hair care, and air care categories. JioMart, Taluja said, now covers 5,000 pin codes and more than 1,000 cities. The platform added 5.8 million new customers, marking a 120% q-o-q growth.
Daily orders grew 42% sequentially and over 200% y-o-y, as JioMart expanded its 30-minute quick delivery service to electronics and accessories across 10 cities.
Reliance Retail’s depreciation for Q2 rose 8.9% y-o-y to Rs 1,547 crore, while finance costs were steady at Rs 596 crore. Tax expenses in Q2 increased to Rs 1,216 crore from Rs 1,025 crore last year.
