Reliance Retail Ventures Ltd. reported a significant turnaround in its June quarter performance, with standalone net profit rising 20.21% sequentially to ₹232 crore from ₹193 crore in the previous quarter, according to latest reports from Business Standard. However, sales declined sharply by 78.69% to ₹1,044 crore from ₹4,898 crore in the year-ago quarter, with the company attributing the revenue decline to the demerger of the FMCG business last December. Operating profit margin improved to 14.27% from 3.29% in the previous quarter, demonstrating enhanced operational efficiency despite the revenue contraction. The retail arm of Reliance Industries had previously reported 7.4% revenue growth in Q1 FY27 with gross revenue of ₹90,408 crore for the quarter ended June 2026, which had exceeded analyst expectations. However, the company noted that overall revenue growth of 7.4% year-on-year was supported by growth across major consumption baskets including grocery, fashion, and consumer electronics.
The company's digital commerce segment showed strong momentum with grocery digital commerce continuing to scale rapidly. Grocery digital commerce average daily orders surged 116% year-on-year, demonstrating the success of the quick commerce strategy. JioMart expanded its reach to around 5,500 pin codes with over 2,500 digital and fashion stores connected to its two-hour delivery network. Digital channels contributed 13.4% of grocery B2C revenue, up 160 basis points from a year earlier. The active seller base grew 26% YoY, strengthening marketplace depth and breadth, with operating focus on repeat customers, order density, reliable availability, delivery cost and contribution margin rather than just order volumes. Unique customers served across retail formats grew 8.5% YoY, while 568 million transactions were recorded during the quarter, up 46.0% YoY, reflecting strong and growing customer engagement. As per CFO Dinesh Taluja, "The number of transactions is growing much faster than revenue, and that's a function of the growing contribution of digital commerce in overall revenues."
Reliance Retail is betting on its quick commerce arm JioMart as a lynchpin to drive sales in categories such as grocery and electronics over the next four quarters, as it looks to expand its dark-store network "aggressively" with a keen eye on unit economics. JioMart's service coverage now extends to over 5,500 pin codes with more than 2,500 digital, fashion and lifestyle stores connected to the two-hour delivery network. The company will adopt a cautious expansion strategy, focusing on various metrics like order density in each dark store, repeat rates, fulfillment costs, and contribution margins. As per CFO Dinesh Taluja, "Basket values grow over a period of time, so that will help improve the overall business and margins. In addition to that, we will look at the product mix, growing share of our own brands, increasing monetisation and marketplace income." The company will evaluate growth on the go and "wherever they don't make sense, we will cut down, so growth will be disciplined."
The consumer electronics business maintained strong momentum with like-for-like (LFL) revenue growth of 16% year-on-year. Growth was driven by categories such as air conditioners, laptops, mobile phones and small appliances, supported by strong brand partnerships and omnichannel initiatives. After-sales service brand ResQ posted 27% year-on-year revenue growth. The fashion and lifestyle segment also reported growth, with LFL sales rising 4% year-on-year. The contribution of own brands increased by 380 basis points, while digital commerce accounted for 27.3% of apparel and footwear revenue, up 490 basis points from a year ago. AJIO Rush recorded 136% quarter-on-quarter order growth, with the digital commerce business reporting a major uptick in apparel and footwear sales. Management noted that the last quarter was challenging for the broader electronics industry due to a global chip shortage and memory capacity constraints, but Reliance was able to mitigate the impact while other players faced significant challenges.
The grocery business sustained its growth momentum with 7% LFL growth, led by staples, dairy, frozen food and bakery products. The company said regional festivals and promotional campaigns continued to support customer spending, while omnichannel customers spent 2.7 times more than offline-only shoppers. The grocery digital commerce segment showed particularly strong performance with the surge in average daily orders, demonstrating the success of the company's omnichannel strategy and quick commerce initiatives. The rapid delivery arm Ajio Rush witnessed 136% sequential growth, reflecting strong performance across the company's omnichannel platforms. Analysts noted that "All the three major consumption baskets, whether it's grocery, fashion, or electronics, all three of those consumption baskets have grown in double digits," highlighting the broad-based nature of the company's growth across all key segments.
Reliance Consumer Products Ltd's (RCPL) FMCG business reported revenue of ₹8,600 crore in the June quarter of FY27, more than double from a year earlier, according to Ketan Modi, chief operating officer of RCPL. Its daily essentials brand Independence posted revenue of ₹3,200 crore in the first quarter. The soft drinks business, led by the Campa brand, recorded gross sales of ₹2,900 crore in the quarter, more than 50% higher than the year-ago period. RCPL's beverage portfolio also includes Rasik, Independence and Brewhouse and others, with the company now India's third-largest non-alcoholic ready-to-drink (NARTD) player and continuing to command double-digit market shares across key markets. The company is expanding its presence in South India following acquisitions of regional brands Mana and Udhayam, with edible oils emerging as a key growth category that grew 1.7 times from the year-ago period. The company has also completed operational transition of brands including Toni & Guy, Brylcreem, Badedas and Matey following its acquisition of a majority stake in a joint venture, with sales commencing in the UK, Europe and Australia.
Reliance Retail expanded its physical presence significantly during the quarter, opening 252 new stores to take its total network to 20,169 stores spanning 78.4 million sq ft. As per Reliance Retail executive director Isha M. Ambani, the company delivered resilient performance during the quarter, with growth across the key consumption baskets. Speaking on an analyst call, management emphasized their three-year objective in retail to double operating EBITDA through growth and better economics. CFO Dinesh Taluja stated that "We are building the foundation of our e-commerce business and are focused on quality, not just volumes. As the business matures, returns on capital, and EBITDA will improve." The company's continued investment in digital commerce underscores the transformative power of their digital platforms, with management noting that "wherever they don't make sense, we will pull back" in terms of expansion strategy. The management said retail margins are likely to remain under pressure over the next few quarters as the company continues to invest in expanding its e-commerce business, particularly quick commerce.
