GST cuts to accelerate consumer demand, says Isha Ambani

Isha Ambani

Recent reductions in goods and services tax (GST) rates are expected to spur consumer demand by lowering prices across key categories, Isha M. Ambani, executive director of Reliance Retail, said on Friday during the company second quarter results. .

“Reliance Retail delivered a strong performance during the quarter, led by our focus on operational excellence, continued investments in stores and digital platforms, and robust festive buying across consumption baskets. The GST rate changes will further accelerate consumption growth as consumers benefit from lower prices,” she said

The latest round of GST rate cuts, effective September 22, 2025, reduced taxes on a broad range of household items, consumer durables, and automobiles, in an effort to boost discretionary spending and provide relief to consumers ahead of the festive season.

The comments come amid a solid quarter for Reliance Retail Ventures Ltd (RRVL), driven by a combination of offline expansion and digital initiatives — including the scaling up of quick commerce operations and premium brand offerings.

For the quarter ended September 30, 2025 (Q2FY26), RRVL reported a net profit of Rs 3,457 crore, up from Rs 2,836 crore a year earlier. Consolidated gross revenue rose 18 percent year-on-year to Rs 90,018 crore, while revenue from operations increased 19 percent to Rs 79,128 crore from Rs 66,502 crore in the same period last year.

Quarterly EBITDA stood at Rs 6,816 crore, up 16.5 percent year-on-year, aided by higher revenues, an improved product mix, and stronger store-level efficiencies. During the quarter, the retailer opened 412 new stores, expanding its total network to 19,821 outlets spanning 77.8 million sq. ft of retail space.

Among segments, grocery and fashion & lifestyle posted growth of 23 percent and 22 percent, respectively, supported by festive demand. Consumer electronics grew 18 percent, benefiting from both GST rate reductions and new product launches.

Disclaimer: Moneycontrol is a part of the Network18 group. Network18 is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.