Reliance Retail registers net profit of Rs 2,935 crore in Q2

Reliance Retail Q2 FY25

Reliance Retail Ventures Limited (RRVL) on Monday reported a net profit of Rs 2,935 crore for the September quarter, up almost 20 percent from a quarter ago. The retail unit's revenue from operations rose to Rs 66,502 crore from Rs 66,260 crore in the preceding three months.

"The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base," said chairman and managing director Mukesh Ambani.

Reliance Retail saw a slight increase in EBITDA, which grew 0.3 percent year-on-year (YoY) to Rs 5,850 crore. EBITDA from operations rose by 1 percent to Rs 5,675 crore, with operational margins improving by 40 basis points to 8.5 percent, the company added.

"We are seeing strong growth in the first two weeks of October as the festival season has started. We expect this momentum to continue going on to Diwali. We are optimistic about growth picking up in the next couple of quarters," said Dinesh Taluja, chief financial officer, Reliance Retail in a virtual briefing after the second quarter results.

He added that this year RVVL touched a new high registering highest single-day sales on Independence day.

Depreciation for the quarter stood at Rs 1,420 crore, a 1.5 percent YoY increase, which the company attributed to accelerated depreciation on stores that were closed. During the quarter, Reliance Retail added 464 new stores, bringing the total store count to 18,946. As a result, the company now operates across 79.4 million square feet of retail space and recorded over 297 million footfalls in Q2 FY25, marking a 14 percent YoY increase.

Investments in technology 

"Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership. We continue to strengthen our customer proposition with innovative products that span everyday essentials to premium offerings," said Isha M. Ambani, Executive Director of Reliance Retail Ventures, in a statement.

"By continuously enhancing our assortment and innovating across categories, we are creating a shopping experience that meets the evolving needs of our customers and reinforces our leadership in the retail space," she further said.

The company stated that its continued focus on scaling up its Digital Commerce and New Commerce initiatives led to these channels contributing 17 percent to overall revenue. Reliance Retail’s registered customer base also grew to 327 million, making it one of the most preferred retailers in the country, the company added.

JioMart, the company’s e-commerce platform, reported strong growth in non-grocery categories, with the average order value (AOV) doubling YoY. The seller base expanded by 46 percent, while the product range increased by 13 percent, offering customers a wider selection of products, RRVL said.

Growth momentum continues 

In the consumer electronics business, Reliance’s digital electronics stores continued to perform well, with the network surpassing 650 outlets across the country. The "Digital India" campaign, which promoted consumer electronics, drove a 60 percent YoY revenue increase, the company said. Meanwhile, resQ, the company's on-demand service, saw service volumes increase by 28 percent YoY and expanded its presence to 150 cities, it added.

The Fashion and Lifestyle segment faced challenges due to weaker demand, but the company said it focused on product innovation and customer engagement. During the quarter, Reliance Retail launched exclusive partnerships, including one with Delta Galil to expand its lingerie and activewear offerings, and introduced the ASOS brand in India, the company noted.

AJIO, the company’s fashion e-commerce platform, added 1.8 million new customers while expanding its product catalogue by 25 percent. The platform also introduced new brands like H&M, Timberland, and ASOS. Additionally, the company’s youth-centric fashion brand, Yousta, crossed 50 stores within its first year of launch, according to the company.

The grocery division delivered steady growth, driven by the Smart Bazaar and Smart store formats. Key categories like confectioneries and snacks saw 30 percent YoY growth, fruits grew by 26 percent, and apparel by 49 percent, the company stated. Reliance also achieved its highest-ever single-day sales on Independence Day, driven by the "Full Paisa Vasool Sale."

The Grocery New Commerce business continued its growth, particularly in the Metro format, which deepened engagement with the trader and HoReCa (Hotels, Restaurants, and Caterers) segments. Various marketing campaigns, such as "Freedom Sales" and "Mehangai Se Azadi," also contributed to the growth, the company added.

Taluja also shared the expansion of premium formats like Fresh Signature, a supermarket offering a broad range of kitchen essentials – including local ethnic snacks & foods. "Even beyond top 10 cities we are seeing traction in our premium formats, which shows that people have purchasing power, and more and more customers are looking to spend and purchase premium products," he said.

JioMart, the company’s quick commerce vertical, continued to scale during the quarter, serving customers through its own store network, with significant growth in non-grocery categories, particularly consumer electronics, the company said. The platform's AOV doubled YoY, supported by an expanded seller base and broader product offerings, the company noted.

Taluja added that JioMart scaled up hyper-local deliveries through an exclusive network of stores. "We already have existing infrastructure, through which we deliver pretty quickly, without any incremental fixed cost, which gives us a big advantage over our peers," he said.