Reliance Retail Q1 net profit fell 14% to ₹2,805 crore as digital investments squeezed margins. FMCG revenue doubled to ₹8,600 crore. Store count hit 20,169.
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Reliance Retail, the retail arm of Reliance Industries Ltd, reported a net profit of ₹2,805 crore for the April-June quarter, down 14.1% from a year earlier, according to an exchange filing. Revenue rose 7.4% to ₹90,408 crore.
EBITDA margin narrowed 80 basis points to 7.9% as the company spent heavily on scaling its digital commerce operations, which pushed up fixed costs. EBITDA stood at ₹6,309 crore, down 1.1% year-on-year.
“The number of transactions is growing much faster than revenue, and that's a function of the growing contribution of digital commerce in overall revenues,” said Dinesh Taluja, chief financial officer of Reliance Retail, on the investor call.
Adjusted for the demerger of the consumer brands business into a direct subsidiary, New Reliance Consumer Products Ltd, in December 2025, revenue grew 11.6% year-on-year.
FMCG revenue doubles
Reliance Consumer Products Ltd's FMCG business posted revenue of ₹8,600 crore in the June quarter, more than double from a year earlier, said Ketan Modi, chief operating officer of RCPL. Its daily essentials brand Independence generated ₹3,200 crore in the quarter.
The soft drinks business, led by the Campa brand, recorded gross sales of ₹2,900 crore, up more than 50% from a year ago. RCPL's beverage portfolio also includes Rasik, Independence and Brewhouse.
“We continue to get double-digit shares in all key markets,” Modi said, adding that home care, personal care, processed foods, confectionery and chocolates also showed strong momentum.
The company is expanding in South India after acquiring regional brands Mana and Udhayam. Edible oils grew 1.7 times from a year ago, and the company is exploring a facility in West Bengal. RCPL is now India's third-largest non-alcoholic ready-to-drink player, Modi said.
Store count and digital sales
Reliance Retail added 252 stores in the quarter, taking its total footprint to 20,169. Omni-channel customers spend 2.7 times more than pure offline customers, Taluja said. The digital commerce segment now accounts for 27.3% of sales, up 490 basis points year-on-year.
The consumer electronics segment reported 16% like-for-like growth. Quick fashion platform Ajio Rush saw orders grow 136% quarter-on-quarter.
Outlook
“Going ahead, the key monitorable will be the pace at which these digital investments begin delivering operating leverage and margin expansion, as consumer engagement and market share gains remain firmly intact,” said Sandeep Abhange, consumer and midcaps analyst at LKP Securities.
Reliance Retail has set a three-year target to double operating EBITDA through growth and better economics. It identified JioMart as its principal growth platform for the next four quarters.
RCPL has completed the operational transition of brands including Toni & Guy, Brylcreem, Badedas and Matey after acquiring a majority stake in a joint venture. Sales have started in the UK, Europe and Australia, with an India launch being prepared. The company has begun manufacturing Campa cans in Australia through its Goodness Group business and plans to launch there by the end of July, Modi said.
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