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Reliance Retail Ventures reported a decline in net profit for the first quarter of FY27 despite recording steady revenue growth and higher customer engagement. The company attributed the fall in profitability to continued investments in digital commerce and supporting infrastructure, which increased fixed costs and impacted margins. During the quarter, the retailer expanded its store network, added millions of new customers, and recorded a sharp rise in transactions, reflecting continued demand across its physical and digital retail formats.
Reliance Retail Ventures Ltd (RRVL), the retail arm of Reliance Industries Ltd (RIL), reported a 14.2 per cent year-on-year decline in profit after tax (PAT) to INR 2,806 crore for the April-June quarter of FY27. The decline came despite higher revenues, as the company continued investing in its digital commerce business and related infrastructure, which increased fixed costs and impacted margins.
The company reported gross revenue of INR 90,408 crore during the quarter, up 7.4 per cent from INR 84,171 crore reported in the corresponding quarter of the previous financial year.
Revenue from operations also increased 8.2 per cent to INR 79,745 crore, compared with INR 73,720 crore in the same period last year, reflecting continued growth across its retail formats.
Reliance Retail's earnings before interest, taxes, depreciation and amortisation (EBITDA) stood at INR 6,309 crore in the first quarter of FY27.
According to Reliance Industries, the company witnessed a margin moderation of 80 basis points during the quarter. It attributed the decline in margins to ongoing investments in digital commerce and associated infrastructure, which led to higher fixed costs as it continued expanding its omnichannel capabilities.
Reliance Industries Chairman and Managing Director Mukesh D. Ambani said that Reliance Retail delivered resilient growth during the quarter with steady performance across its various consumption formats and sales channels. He added that the company's omnichannel network continues to serve millions of consumers across India and is well positioned to benefit from the country's long-term consumption growth.
The retailer continued expanding its physical presence during the quarter by opening 252 new stores, taking its total store count to 20,169. Its total retail area also increased to 78.4 million square feet, reinforcing its position as India's largest organised retail network.
Reliance Retail also continued to strengthen its consumer base. Its registered customer base grew 10.6 per cent year-on-year to 396 million, making it one of the country's largest retail customer networks.
Customer engagement remained strong during the quarter, with the company recording 568 million transactions, an increase of 46 per cent compared with the year-ago period. The growth highlights continued traction across both offline stores and digital commerce platforms.
Reliance Retail has been consistently investing in expanding its omnichannel ecosystem over the past few years by strengthening digital platforms, supply chain infrastructure, logistics capabilities and technology integration. These investments have supported customer acquisition and transaction growth, although they have temporarily weighed on profitability as the company continues to build long-term scale.
Source PTI
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