Reliance Retail Q2 profit falls 24.5%, revenue up 6.4%
Reliance Retail, the arm of billionaire Mukesh Ambani-led Reliance Industries, on Friday reported a 24.5 per cent decline in profit after tax to ₹2,619 crore in the September quarter.
Its PAT was ₹3,469 crore in the year-ago period.
Its gross revenue rose 6.43 per cent to ₹91,716 crore from ₹86,169 crore a year earlier as the festive period shifted to the December quarter.
Revenue from operations of Reliance Retail Venture Ltd (RRVL) increased 5.78 per cent to ₹80,220 crore in the September quarter of FY27. It was ₹75,836 crore in the corresponding period of the last fiscal year.
"The business performance was impacted by the shift in the festive calendar to Q3," said Reliance Industries in its earnings statement.
Its EBITDA from Operations slipped 11.1 per cent to ₹5,886 crore in the September quarter of FY27 against ₹6,624 crore a year ago.
RRVL'S EBITDA before one-time impairment charge fell 8.6 per cent to ₹6,228 crore.
This was because of a moderation of 120 bps in margin due to the planned investment phase in Digital Commerce, input cost inflation absorbed for customers, and the festive shift to Q3, it said
During the quarter, Reliance Retail added 303 new stores in its sales network, with a net reduction of 222 stores after accounting for closure of unproductive stores.
RRVL's total store count rose slightly by 0.6 per cent to 19,947 as of September 30, from 19,821 a year ago.
However, its total retail area declined marginally by 0.4 per cent year-on-year to 77.5 million square feet from 77.8 million square feet in the year-ago period.
Its Chairman and Managing Director Mukesh Ambani said: "Reliance Retail had a steady quarter, with growth sustained across all formats and channels. Consumer demand stayed healthy, supported by our extensive physical and digital presence and our continued focus on serving the diverse needs of Indian consumers".
"Our consumer products business kept its growth momentum, with the FMCG brand portfolio gaining further ground among Indian consumers."
The business achieved 7 per cent growth in transactions in a quarter even with major festivals shifting to Q3, indicating strong customer engagement and continued growth, he added.
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