Reliance Retail is counting on its quick commerce platform JioMart to drive growth over the next four quarters, the company said in its Q1FY27 investor presentation, but is eyeing scale with operating discipline.
The company will focus on improving JioMart’s availability, speed, and reliability in FY27 across grocery, electronics and fashion. Investments will be concentrated in micro-markets with a clear path to “positive economics”, it added.
Operational Calibration
The focus on improving operating performance comes as Reliance Retail’s Ebitda margins slip for the fourth straight quarter thanks to planned investments into JioMart. Since the September quarter of FY26, Reliance Retail’s margins have steadily slipped by 10-80 basis points. One basis point is one-hundredth of a percentage point.
“We will look at various metrics like order density in each dark store, repeat rates, fulfillment costs, and contribution margins. We have defined targets for each of these and will evaluate on the go. Wherever they don’t make sense, we will cut down, so growth will be disciplined,” Dinesh Taluja, Reliance Retail’s chief financial officer, said.
Network Metrics
JioMart operates across 5,500 pin codes in India, with more than 2,500 digital, fashion and lifestyle stores connected to its two-hour delivery network. Its average daily orders surged 116% year-on-year in the June quarter, while its active seller base grew 26% compared to the year-ago period. The digital share of grocery B2C (business-to-consumer) revenue grew by 13.4% in Q1, up 610 basis points versus the same period last year.
While expansion of this network will continue through FY27, Reliance Retail is hoping to double operating Ebitda in three years on the back of a sustainable business model.
“Online growth will be funded from existing profits and the absolute numbers will grow,” Taluja said. As density improves and the business delivers productivity gains, inventory turns will improve and monetisation will begin to kick in. This should drive healthy returns on capital from these investments, he added.
JioMart’s focus on profitability comes as competition in quick commerce grows, with companies racing to expand in the market.
Blinkit led the quick commerce market in 2025 with a 47% share, followed by Zepto at 24% and Swiggy Instamart at 22%, according to market research firm Datum Intelligence. Other players, including Flipkart Minutes, Amazon Now, JioMart, and BigBasket, together accounted for the remaining 7%, pointing to the ground that newer entrants still have to cover to gain scale.