The retail sector reported an EBITDA of ₹6,309 crore, down 1.1% from ₹6,381 crore in the corresponding period last year. Analysts anticipated EBITDA between ₹6,700 crore and ₹6,800 crore. The EBITDA margin shrank by 80 basis points to 7.9% from 8.7% a year earlier.
Profit after tax (PAT) saw a year-on-year decline of 14.2%, dropping to ₹2,806 crore from ₹3,271 crore in the same quarter last year.
Sequentially, gross revenue decreased by 8% from ₹98,232 crore in the March quarter, while EBITDA fell by 8.8% compared to ₹6,921 crore. PAT declined by 21.3% from ₹3,563 crore, with the EBITDA margin steady at 7.9% quarter-on-quarter.
In the March quarter, Reliance Retail recorded gross revenue of ₹98,232 crore, EBITDA of ₹6,921 crore, PAT of ₹3,563 crore, and an EBITDA margin of 7.9%. During this quarter, the company opened 333 new stores, increasing its total store count to 20,160, covering a retail area of 78.3 million square feet. Reliance Retail reported a growth in its registered customer base to 387 million, with total transactions rising to 1.93 billion.
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Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries, said, “Reliance Retail demonstrated strong growth this quarter, maintaining consistent performance across all consumer formats and channels. Our omni-channel strategy continues to cater to millions of Indian consumers, positioning us to benefit from India’s long-term consumption growth. The consumer products division is expanding rapidly, with our FMCG brand portfolio gaining significant traction among Indian consumers.”
Isha M. Ambani, Executive Director of Reliance Retail Ventures Limited, stated, “Reliance Retail showed robust performance in Q1 FY27, with growth across key consumption segments. Our ongoing investment in digital commerce highlights the transformative potential of our digital platforms. Our expanding customer base, extensive store network, and enhanced omni-channel capabilities enable us to meet every need, every dream, for every Indian, every day.”
Along with the quarterly results, Reliance Retail unveiled a three-year strategy to double its operating EBITDA through growth and enhanced unit economics. In FY27, the company aims to expand its online business by increasing JioMart’s omni-channel reach, improving availability, speed, and reliability, and strengthening unit economics across various markets while continuing to grow its dark store network.
In FY28 and FY29, the focus will transition to turning scale into value by boosting repeat purchases, increasing basket sizes and customer lifetime value, expanding proprietary brands, enhancing marketplace monetization, improving inventory turnover and fulfillment density, and compounding revenue, margins, and cash flows.
Analysts noted that the retail sector continues to exhibit strong growth, despite falling short of Street expectations for revenue and EBITDA. Gurmeet Chadha, Managing Partner & CIO at Complete Circle, remarked that Reliance’s consumer business remains on a promising growth trajectory, with newer brands like Campa Cola and Independence rapidly gaining traction.
“Campa Cola is nearing ₹5,000 crore, almost ₹4,800 crore. Independence is performing well too, with sales between ₹2,600-2,700 crore. Retail is indeed scaling up,” Chadha noted.
Chadha also mentioned that investors are focusing on the long-term consumer potential rather than just quarterly performance. He believes that Reliance Retail’s own brands are growing effectively, and the potential unlocking of value from the upcoming Jio IPO could serve as a catalyst for the stock.
