Reliance Retail Ventures Ltd (RRVL) reported a year-on-year decrease in net profit of 14.1%, amounting to 2,805 crore rupees, for the first quarter of fiscal year 27.
Financial Performance and Management Comments
The company's CEO, Isha Ambani, noted that Reliance Retail demonstrated steady results in the first quarter of fiscal year 27, highlighting growth in key consumer segments. She emphasized that continuous investment in digital commerce business shows the transformative power of digital platforms, while expanding the customer base, having the widest network of stores, and growing omnichannel interaction capabilities allow the company to meet the daily needs of Indians.
Reliance Retail's Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) decreased by 1.8% to 5,935 crore rupees. During the reporting quarter, which ended in June, financial expenses increased by 34% year-on-year, reaching 793 crore rupees.
Growth Strategy and Operational Data
Chairman and Managing Director of Reliance Industries, Mukesh Ambani, stated that Reliance Retail showed steady growth this quarter, maintaining stability across all formats and consumption channels. He expressed confidence that the company's omnichannel presence continues to serve millions of Indian consumers and is well-positioned to benefit from long-term consumption growth in India.
During the post-results briefing, Reliance Industries CFO, Shrikant Venkataruri, reported that the company is focused on scaling its digital commerce business, which is supported by physical infrastructure, and plans to develop the digital business in the coming quarters.
The total operating revenue of the country's largest retailer reached 79,745 crore rupees, an 8.2% increase compared to last year. Gross revenue grew by 7.4% to 90,408 crore rupees. When adjusted for the separation of businesses by consumer brands, gross revenue increased by 11.6% year-on-year, demonstrating double-digit growth in the grocery, fashion, lifestyle, and consumer electronics segments.
Compared to the previous period, operating revenue declined by 8.7%, and net profit fell by 21.5%. During the quarter, the company opened 252 new stores, bringing the total number of stores to 20,169, with a total retail area of 78.4 million square feet.
Reliance Consumer Products Results
Reliance Consumer Products reported a gross revenue of 8,600 crore rupees for the April-June quarter, more than double the figure from last year. In the daily essentials category, led by the Independence brand, sales amounted to 3,200 crore rupees in the first quarter.
The company also reported that beverages under the Campa brand generated 2,900 crore rupees in revenue in the first quarter, accounting for over 50% of the financial year 26 sales in the first quarter and capturing a double-digit market share in key markets. The fast-moving consumer goods segment now has over 5,000 distributors and is present in more than 3 million points of sale.
Furthermore, the company is expanding its presence in international markets, planning product launches in Australia and African countries. Mukesh Ambani added that the consumer goods business is rapidly evolving, and the portfolio of FMCG brands is gaining real popularity among Indian consumers, and that RCPL (Reliance Consumer Products Ltd) has doubled its revenue compared to the previous year.
