Reliance Retail bets on JioMart scale to drive margins, growth
Reliance Retail plans disciplined expansion of JioMart’s dark-store network, betting on higher order density and private labels to improve margins as competition in quick commerce intensifies.
Bengaluru: 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, its finance head said on Friday.
JioMart is expected to see the benefit of scale play out in the form of higher margins and cash generation over the next two years, as it works on acquiring “high-quality customers” that will drive up purchase frequencies, Reliance Retail's chief financial officer (CFO) Dinesh Taluja said in Reliance Industries Ltd's (RIL) investor presentation for April-June (Q1) quarter of this financial year.
“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,” Taluja added.
JioMart’s average daily orders surged 116% year-on-year in the June quarter, while active seller base grew 26% compared to the year-ago period. The digital share of grocery B2C (business-to-consumer) revenue grew by a nominal 13.4% year-on-year (y-o-y), RIL's investor presentation showed.
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.
However, increased investments in scaling digital commerce led to a decline in Reliance Retail’s Ebitda (earnings before interest, taxes, depreciation and amortisation) margin to 7.9% in the June quarter, from 8.7% a year earlier.
Reliance Retail said it will adopt a cautious expansion strategy. “We will look at various metrics like order density in each dark store, repeat rates, fulfillment costs, and contribution margins. We have defined targets for each of these and will evaluate on the go. Wherever they don’t make sense, we will cut down, so growth will be disciplined,” Taluja noted.
As density improves and the business delivers productivity gains, inventory turns will improve and monetisation will begin to kick in. That, in turn, should drive healthy returns on capital from these investments, Taluja said.
“This year, online growth will be a focus but it will be quite measured. Growth will be funded from existing profits and the absolute numbers will grow,” Taluja said, speaking of Reliance Retail’s digital commerce strategy.
In FY27, Reliance Retail will also focus on improving JioMart’s availability, speed, and reliability, the company added. Investments will be concentrated in micro-markets with “clear path to positive economics”, according to the presentation.
Mint reported in April how JioMart is using its extensive network of physical stores to enable two-hour deliveries, while broadening its focus to higher-value categories such as electronics and fashion, breaking away from the industry’s fixation on delivery within minutes.
JioMart's commentary comes as competition in quick commerce intensifies, with companies racing to expand in the fast-growing segment.
Flipkart has been scaling up its Minutes service, while Amazon has expanded Amazon Now to more cities as it seeks to challenge the incumbent players. Meanwhile, Zepto is preparing for an initial public offering (IPO), joining a growing list of new-age companies tapping the public markets.
Blinkit led the quick commerce market in 2025 with a 47% share, followed by Zepto at 24% and Swiggy Instamart at 22%, according to estimates by market research firm Datum Intelligence. Other players, including Flipkart Minutes, Amazon Now, JioMart, and BigBasket, together accounted for the remaining 7%, highlighting the significant ground newer entrants still have to cover to gain scale.
About the Author
Sowmya Ramasubramanian
Sowmya is a senior correspondent covering retail, FMCG, corporate strategy, and consumer technology, with a focus on how companies navigate demand, competition, and shifting consumption patterns across both urban and emerging markets. She reports on business decisions through both breaking news and long-form stories.<br><br>An alumna of the Asian College of Journalism, she has reported on a range of consumer-facing industries, including e-commerce, healthcare, and startups. Her work focuses on understanding how companies grow, compete, and adapt in a changing economic environment, as well as how broader trends translate into everyday consumption and business outcomes.<br><br>She is particularly interested in how business decisions show up in everyday consumer experiences, and often looks at trends through the lens of how they play out on the ground.<br><br>Prior to her current role, Sowmya was part of the editorial team at YourStory, where she covered startups and entrepreneurship. She has also worked on longform stories at The Morning Context and reported on technology at The Hindu in Chennai, gaining experience across different formats and newsrooms.<br><br>Her reporting aims to be accurate and accessible, with an emphasis on context and careful sourcing. She is particularly interested in stories that sit at the intersection of business strategy and consumer behaviour.<br><br>Based in Bengaluru and always curious about evolving consumption trends, she is often exploring new coffee and kombucha spots, both as a personal interest and a way to observe how consumer preferences are taking shape on the ground.
Source: Livemint — Companies
