Reliance Retail Q1 Results: Profit Declines 14.2% to ₹2,806 Cr Despite Higher Revenue

Reliance Retail Ventures Ltd (RRVL) reported a 14.2% year-on-year decline in net profit for the first quarter of FY27, as higher investments in its digital commerce business and related infrastructure weighed on profitability, according to Reliance Industries' earnings statement.

The company's profit after tax (PAT) stood at ₹2,806 crore for the April-June quarter, compared with ₹3,271 crore in the same period last year, as per the company's financial results. Despite the drop in profit, Reliance Retail recorded steady growth in revenue during the quarter.

Gross revenue increased 7.4% year-on-year to ₹90,408 crore from ₹84,171 crore in the corresponding quarter of the previous financial year, according to the earnings statement.

Revenue from operations also rose 8.2% to ₹79,745 crore, compared with ₹73,720 crore a year earlier.

The company reported earnings before interest, tax, depreciation and amortisation (EBITDA) of ₹6,309 crore for the quarter.

Digital Commerce Spending Impacts Profitability

According to Reliance Industries, Reliance Retail's operating margins moderated by 80 basis points during the quarter. The company attributed the decline to continued investments in digital commerce and associated infrastructure, which increased fixed costs.

The company said these investments are aimed at strengthening its omni-channel capabilities, although they had an impact on profitability during the reporting period.

Commenting on the performance, Reliance Industries Chairman and Managing Director 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".

Store Expansion and Customer Base

According to the company's quarterly update, Reliance Retail continued expanding its physical footprint during the quarter by opening 252 new stores. This took its total store count to 20,169, with a retail area of 78.4 million sq ft.

The retailer also reported growth in its customer base. As per the company, registered customers reached 396 million during the quarter, marking a 10.6% increase compared with a year earlier.

Customer engagement also remained strong. According to the company's earnings statement, Reliance Retail recorded 568 million transactions during the first quarter of FY27, representing a 46% year-on-year increase, reflecting higher consumer activity across its retail formats and channels.