The retail business reported EBITDA of ₹6,309 crore, down 1.1% from ₹6,381 crore in the year-ago period. Analysts had estimated EBITDA between ₹6,700 crore and ₹6,800 crore. EBITDA margin contracted by 80 basis points to 7.9% from 8.7% a year ago.
Profit after tax (PAT) declined 14.2% year-on-year to ₹2,806 crore from ₹3,271 crore in the corresponding quarter last year.
On a sequential basis, gross revenue declined 8% from ₹98,232 crore reported in the March quarter, while EBITDA fell 8.8% from ₹6,921 crore. PAT declined 21.3% from ₹3,563 crore, while EBITDA margin remained unchanged at 7.9% quarter-on-quarter.
In the March quarter, Reliance Retail had reported gross revenue of ₹98,232 crore, EBITDA of ₹6,921 crore, PAT of ₹3,563 crore and an EBITDA margin of 7.9%. During the quarter, the company added 333 stores, taking its total store count to 20,160, with a retail footprint of 78.3 million square feet. Reliance Retail had said its registered customer base grew to 387 million, while total transactions increased to 1.93 billion.
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Commenting on the results, Chairman and Managing Director of Reliance Industries Mukesh D. Ambani said, “Reliance Retail delivered resilient growth this quarter, with steady performance across all consumption formats and channels. Our omni-channel presence continues to serve millions of Indian consumers and I am confident that it is well placed to benefit from India’s long term consumption growth.The consumer products business is growing rapidly with the portfolio of FMCG brands gaining real traction with Indian consumers.”
Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited, said, “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.”
Alongside the quarterly results, Reliance Retail outlined a three-year strategy aimed at doubling its operating EBITDA through growth and improved unit economics. In FY27, the company plans to scale its online business by expanding JioMart’s omni-channel reach, improving availability, speed and reliability, strengthening unit economics across markets, and continuing to expand its dark store network.
Over FY28 and FY29, the focus will shift to converting scale into value by increasing repeat purchases, basket sizes and customer lifetime value, expanding own brands and marketplace monetisation, improving inventory turns and fulfilment density, and compounding revenue, margins and cash flows.
Analysts said the retail business continued to show healthy growth despite missing Street estimates on revenue and EBITDA. Gurmeet Chadha, Managing Partner & CIO at Complete Circle, said Reliance’s consumer business remains on a strong growth trajectory, with newer brands such as Campa Cola and Independence scaling up rapidly.
“Campa Cola is already nearing ₹5,000 crore, almost ₹4,800 crore. Independence is another brand which is ₹2,600-2,700 crore. So, retail is scaling up,” Chadha said.
Chadha said investors are looking beyond the quarterly performance to the company’s long-term consumer opportunity. According to him, Reliance Retail’s own brands are scaling well, while value unlocking from the upcoming Jio IPO could act as a catalyst for the stock.
