Reliance Retail Q1 net profit down 14%; FMCG revenue doubles
Mumbai/Bengaluru: Reliance Retail, the retail arm of Reliance Industries Ltd, reported net profit on Friday ₹2,805 crore in the April-June quarter (Q27), down 14.1% year-on-year, according to stock exchange data. Revenues increased by 7.4 percent annually ₹90,408 crore in this quarter.
Reliance Retail operates in grocery, consumer electronics, fashion, lifestyle and online commerce.
“The number of transactions is growing much faster than revenue, and this is a function of the increasing contribution of digital commerce to overall revenues,” said Chief Financial Officer Dinesh Taluja. Reliance Retail at investor call.
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Reliance Retail reported net profit of ₹2,805 crore in Q1 FY27; this represents a 14.1% annual decline.
EBITDA margin decreased by 80 basis points to 7.9% due to planned investments to scale digital business, which increased fixed costs.
Reliance Consumer Products Ltd’s FMCG revenue doubled to ₹ 8,600 crore in the June quarter compared to the previous year.
Overall revenue growth of 7.4% annually; It was supported by growth in key consumption baskets such as grocery, fashion and consumer electronics.
While consumer engagement and market share gains remain strong, investors need to weigh the growth potential of digital commerce against the current pressure on profit margins.
EBITDA, i.e. earnings before interest, taxes, depreciation and amortization ₹ 6,309 crore, down 1.1% year-on-year. EBITDA margin decreased by 80 basis points to 7.9% due to planned investment in scaling digital business.
The company said it achieved overall revenue growth of 11.6% year-over-year, adjusted for the spin-off in its consumer brands business. Reliance Industries has officially demerged its FMCG business into its direct subsidiary, New Reliance Consumer Products Ltd (New). RCPL) in December 2025.
“Going forward, the pace at which these digital investments start delivering operating leverage and margin expansion will be the key factor to watch as consumer engagement and market share gains remain firmly intact,” said Sandeep Abhange, consumer and midstream company analyst at LKP Securities.
retail business
The retail industry added 252 new stores during the quarter, bringing its total footprint to 20,169 stores. “When we look at omni-channel customers, we get a higher share of wallet from omni-channel customers,” Taluja said. Omnichannel customers spend 2.7x compared to pure offline customers.
For the retail sector, the company said its three-year target is to double operating EBITDA through growth and better economics. The company has identified JioMart as its key growth platform for the next four quarters.
“All three major consumption baskets, be it grocery, fashion or electronics, showed double-digit growth,” Taluja said.
The consumer electronics segment reported a similar growth rate of 16% from a year ago. Fast fashion commerce platform Ajio Rush’s orders increased by 136% quarter on quarter during this period.
The digital commerce business reported a huge increase in clothing and footwear sales. The segment currently accounts for 27.3% digital sales, up 490 basis points from the previous year.
Consumer business doubles
Reliance Consumer Products Ltd (RCPL) The FMCG business reported revenue of: ₹8,600 crore in the June quarter of FY27, more than double the previous year, said Ketan Modi, chief operating officer of RCPL.
Daily essentials brand Independence announced the following revenue: ₹3,200 crore in the first quarter.
Gross sales were recorded in the company’s soft drinks business, led by the Campa brand. ₹2,900 crore in the quarter, an increase of over 50% over the previous year period. RCPL’s beverage portfolio also includes Rasik, Independence and Brewhouse, among others.
“We continue to capture double-digit shares in all key markets,” Modi said, adding that other FMCG categories, including home care, personal care, processed foods, confectionery and chocolate, also showed significant momentum in the quarter.
The company is also expanding its presence in South India by acquiring regional brands Mana and Udhayam. Edible oils have emerged as a key growth category, with the company seeing strong traction and exploring the possibility of setting up a plant in West Bengal. Modi said the category grew 1.7 times in the June quarter compared to the same period in the previous year.
In beverages, he said, RCPL is currently India’s third largest non-alcoholic ready-to-drink beverage (NARTD) player and continues to have double-digit market shares in key markets.
The company is also expanding its portfolio in categories including mayonnaise and noodles under the SIL brand, while growing its Velvet brand and expanding into personal care through Glimmer. Biscuits and confectionery also recorded strong momentum in the quarter.
RCPL continues to invest in manufacturing and supply chain infrastructure, including plans for a facility in West Bengal.
The company also completed the operational transition of the following brands: Toni & Guy, Brylcreem, Badedas and Matey after acquiring a majority stake in a joint venture. Sales of these brands have started in the UK, Europe and Australia and the India launch is also being prepared.
RCPL has started manufacturing Campa cans in Australia through its Goodness Group business and plans to launch the product by the end of July, Modi said.
