Reliance Retail Q1 results: Quick-commerce spends drag PAT 14% YoY to Rs 2,806 crore; revenue rises 7%

Reliance Retail on Friday reported a 7.4% YoY rise in June quarter revenue to Rs 90,408 crore, while profit after tax fell 14.2% to Rs 2,806 crore due to higher spending and cash burn in its fast-growing quick commerce business.

The company's EBITDA margin moderated 80 bps to 7.9% due to the growing contribution of digital commerce in revenue and associated infrastructure investments increasing fixed costs.

Adjusted for the demerger of the Consumer Brands business, RRPL's gross revenue was up 11.6% YoY with double-digit underlying growth across grocery, fashion & lifestyle and consumer electronics consumption baskets.


Grocery digital commerce continued to scale rapidly with average daily orders up 116% YoY. During the quarter, the company opened 252 stores, taking the total store count to 20,169 and area to 78.4 million sq ft.

Also read: RIL Q1 Results: Revenue up 25% YoY; profit falls 22% YoY to Rs 20,946 cr due to one-time exceptional item
"Reliance Retail delivered resilient performance in Q1 FY27, with growth across the key consumption baskets. Our continued investment in digital commerce underscores the transformative power of our digital platforms. Our expanding customer base, widest store network, and growing omni-channel capabilities position us well to continue fulfilling every need, every dream, for every Indian, every day," Reliance Retail's Executive Director Isha Ambani said.

JioMart performance

Grocery Digital Commerce average daily orders were up 116% Y-o-Y. Digital channel share contributed 13.4% (+160 bps Y-o-Y) of Grocery B2C revenue. JioMart maintained growth momentum across key metrics with platform servicing ~5,500 pin codes with 2,500+ Digital and Fashion & Lifestyle stores connected to two-hour delivery.

Operating focus is repeat customers, order density, reliable availability, delivery cost and contribution margin and not orders alone. Active seller base grew 26% Y-o-Y, strengthening marketplace depth and breadth, the company said in a release.

Also read: Reliance Jio Q1 Results: IPO-bound telco’s net profit rises 9% YoY to Rs 7,764 crore; ARPU climbs to Rs 215.6

Retail plans

In an investor presentation, RRVL said it has a 3-year objective to double operating EBITDA through growth and better economics.

The plan is to scale the business online in FY27 by growing JioMart and omni-channel reach across platforms, expand dark stores and prove unit economics in each of the markets.

The strong foundation of FY27 will convert scale into higher EBITDA and cash generation in FY28 and FY29, when the focus will be on increasing repeat purchases, basket sizes and customer lifetime value, while expanding own brands, monetisation opportunities and marketplace income. Higher inventory turns and fulfilment density should support sustained growth in revenue, margins and cash generation.

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