Reliance Retail Q3 results: Revenue rises 8% to Rs 97,605 crore amid festive demand

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Reliance Retail Ventures Ltd reported an 8 percent increase in quarterly revenue to Rs 97,605 crore from Rs 90,333 crore in the year-earlier period, reflecting steady growth in the retail arm of Reliance Industries. The sales reflect healthy demand momentum spurred by festive buying and GST impact.

Quarterly profit after tax rose 2.7 percent to Rs 3,551 crore from Rs 3,458 crore in the year earlier. The company's earnings before interest, taxes, depreciation, and amortisation (EBITDA) came in at 6,915 crore.

"Reliance Retail delivered a steady quarterly performance, serving millions of customers across their shopping needs. By prioritising trend-focused assortments and seamless omni-channel experiences, we continue to foster strong customer engagement and loyalty. As we navigate a shifting consumer landscape, we remain steadfast in our vision to redefine Indian retail through innovation and excellence," said Isha M. Ambani, Executive Director, Reliance Retail Ventures Ltd.

EBITDA margins stood at 8 percent, expanding 60 bps from a year earlier, amid costs incurred from one-time impact of the new labour code,  investments in the hyperlocal commerce business and festive offers and promotions, chief financial officer Dinesh Taluja said in a post-earnings call on January 16.

The business expanded its store network with 431 new store openings, taking the total store count to 19,979 and the area under operation to 78.1 million sq ft. The registered customer base grew to 378 million, up 11 percent from 338 million a year earlier.

Grocery and hyperlocal

Its grocery business, which operates Reliance Fresh, Smart Bazaar, Fresh Signature, 7-Eleven and online platforms like JioMart, saw consistent performance underpinned by an uptick in festive demand, the company said. Metro continued its steady performance, driven by an increase in customer footfalls and an expansion of wallet share, according to the company.

In grocery, big box continues to be the key driver of growth, where we are seeing pretty strong, healthy LFL growth in the business. The growth is quite broad-based," Taluja said.

Festive-led gifting categories recorded their highest-ever quarterly volumes, while staples, packaged foods and other everyday categories continued to post healthy momentum, the company said. RCPL is focusing on onboarding kiranas across its 200-plus stores and deepening wallet share through loyalty and engagement programmes.

Meanwhile, RCPL said its commerce network now spans more than 5,000 pin codes across more than 1,000 cities, served through over 3,000 stores, including a growing dark-store footprint, giving it the widest reach among quick-commerce players.

JioMart reported 53% Q-o-Q and 360%+ Y-o-Y growth in average daily orders for its 30-minute hyper-local delivery service, with one in four orders coming in from the food and beverages category, Taluja flagged, adding that this results in nearly double the transaction frequency compared with peers.

JioMart competes with other quick commerce companies such as Blinkit, Zepto, Instamart, and Flipkart Minutes. Continued addition of dark stores reduced the average delivery distance per order, the company said.

Fashion & Lifestyle, Jewels

The fashion and lifestyle unit, which houses brands including Reliance Trends, Azorte, and Yousta, among others, also reported a steady performance supported by festive demand and seasonal assortment execution, the company said.

Ajio delivered consistent growth throughout the period, driven by promotions and festive buying, resulting in an average basket value increase of 21% Y-o-Y, the company said.

"We have different offerings, and that is something no other competitor in the market can actually replicate because nobody has the kind of footprint that we have in terms of the performance," Taluja said. The company had recently commenced quick commerce services for fashion,  electronics and accessories in a move to deepen its online presence.

The jewels business recorded strong performance driven by festive and wedding-related demand, resulting in a 73 percent increase in average bill value from a year earlier, the company added. RCPL noted that the share of transactions involving gold exchange increased from 21% to 29%, reflecting an effort by buyers to limit cash outflows amid elevated prices.

"The gold prices have gone up substantially, which has reflected in the strong growth across the industry," Taluja said.

Consumer electronics

The digital stores for consumer electronics delivered strong performance during the festive quarter, driven by year-end campaigns and GST-led price resets for air conditioners and televisions, the company said. Performance across key categories saw double-digit growth, with laptops increasing by 46 percent, mobiles by 38 percent, TVs by 25 percent, and appliances by 19 percent.

The company highlighted the scale of its owned service and installation network, now spanning more than 1,600 cities, which allows it to offer same-day or next-day delivery and installation, a capability it said remains hard for competitors to replicate.

Its B2B business posted a record quarter, led by the highest-ever sales of mobile phones and televisions, the two largest categories in this segment.