Reliance Retail Q1 net profit down 14%; FMCG revenue doubles
Reliance Retail said it will focus on Jiomart as a key lever for growth in the next four quarters
Mumbai/Bengaluru: Reliance Retail, the retail arm of Reliance Industries Ltd, on Friday reported a net profit of ₹2,805 crore for the April-June quarter (Q1FY27), down 14.1% year-on-year, according to an exchange filing. Revenue rose 7.4% year-on-year to ₹90,408 crore in the quarter.
Reliance Retail operates across grocery, consumer electronics, fashion, lifestyle, and online commerce.
“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,” said Dinesh Taluja, chief financial officer of Reliance Retail, in the investor call.
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Reliance Retail reported a net profit of ₹2,805 crore for Q1FY27, which represents a decrease of 14.1% year-on-year.
The EBITDA margin declined by 80 basis points to 7.9% due to planned investments aimed at scaling digital commerce, which increased fixed costs.
The FMCG revenue of Reliance Consumer Products Ltd doubled to ₹8,600 crore in the June quarter from the previous year.
The overall revenue growth of 7.4% year-on-year was supported by the growth across major consumption baskets including grocery, fashion, and consumer electronics.
Investors should weigh the potential for digital commerce growth against the current pressure on profit margins, as consumer engagement and market share gains remain strong.
Ebitda, or earnings before interest, taxes, depreciation and amortization, stood at ₹ 6,309 crore, down 1.1% y-o-y. Ebitda margin was at 7.9%, down 80 basis points due to a planned investment in scaling digital commerce.
The company said it saw a 11.6% YoY overall revenue growth adjusted for demerger of consumer brands business. Reliance Industries officially demerged FMCG business into a direct subsidiary, New Reliance Consumer Products Ltd (New RCPL), in December, 2025.
“Going ahead, the key monitorable will be the pace at which these digital investments begin delivering operating leverage and margin expansion, as consumer engagement and market share gains remain firmly intact,” said consumer & midcaps analyst Sandeep Abhange at LKP Securities.
Retail business
The retail business added 252 new stores during the quarter, taking its total footprint to 20,169 stores. “ When we look at omni-channel customers, we are getting higher wallet share from omni-channel customers,” Taluja said. Omni-channel customers spend 2.7x compared to pure offline customers.
For the retail business, the company said that its three-year objective is to double operating Ebitda through growth and better economics. The company identified JioMart as its principal growth platform for the next four quarters.
“All the three major consumption baskets, whether it's grocery, fashion, or electronics, all three of those consumption baskets have grown in double digits,” Taluja said.
The consumer electronics segment reported a 16% like-for-like growth rate from a year ago. The quick fashion commerce platform Ajio Rush orders grew 136% q-o-q in the period.
The digital commerce business reported a major uptick in apparel and footwear sales. The segment now makes 27.3% digital sales, up 490 bps y-o-y.
Consumer business doubles
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, said Ketan Modi, chief operating officer of RCPL.
Its daily essentials brand Independence posted revenue of ₹3,200 crore in the first quarter.
The company's 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.
"We continue to get double-digit shares in all key markets," Modi said, adding that other FMCG categories, including home care, personal care, processed foods, confectionery and chocolates, also showed significant momentum during the quarter.
The company is also expanding its presence in South India following its acquisitions of 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 facility in West Bengal. The category grew 1.7 times from the year-ago period in the June quarter, Modi said.
In beverages, RCPL is now India's third-largest non-alcoholic ready-to-drink (NARTD) player and continues to command double-digit market shares across key markets, he said.
The company is also expanding its portfolio across categories under the SIL brand, including mayonnaise and vermicelli, while scaling up its Velvet brand and expanding into personal care through Glimmer. Biscuits and confectionery also recorded strong momentum during the quarter.
RCPL continues to invest in manufacturing and supply-chain infrastructure, including plans for a facility in West Bengal.
T he company has also completed the operational transition of brands including Toni & Guy, Brylcreem, Badedas and Matey following its acquisition of a majority stake in a joint venture. Sales of these brands have commenced in the UK, Europe and Australia, with an India launch being prepared.
RCPL has begun manufacturing Campa cans in Australia through its Goodness Group business and plans to launch the product in the market by the end of July, Modi said.
About the Authors
Neethi Lisa Rojan
Neethi Lisa Rojan is a senior correspondent focusing on the consumer goods and retail sector working from Mumbai for Mint since 2026. She has been a journalist for a little over two years with Moneycontrol and The Morning Context. She has covered the consumer and healthcare sectors in earlier roles. She was a double gold medallist during her bachelor’s from Mahatma Gandhi University Kerala and post-graduation from Pondicherry University. With a background in commerce and journalism, she brings a sharp analytical lens to stories on India’s fast-evolving consumer goods and retail sector.<br><br>With an academic background in business administration and a keen eye for financial statement analysis, she bridges the gap between corporate data and compelling narrative journalism. Her reporting is characterized by a focus on how evolving consumer behaviours and regulatory changes impact India's largest mass-market brands. She is a keen learner with diplomas in international business, human rights and journalism. She specialized in business journalism at the Asian College of Journalism, Chennai. When she is not looking into shopping carts, you can find her explaining the latest conspiracy theory.
Vaeshnavi Kasthuril
Vaeshnavi reports on the business of consumption from Bengaluru, tracking how India shops, eats, and clicks. As a correspondent with Mint’s consumer economy team, she covers sectors ranging from retail and food and beverage to the rapid rise of quick commerce. She is a 2025 graduate of the Asian College of Journalism’s Bloomberg Business and Finance programme. She joined the Mint newsroom in May 2025 and this is her first stint in journalism. She holds a bachelor's degree in accounting and finance from the University of Madras. Vaeshnavi loves storytelling and breaking down complex jargon and numbers to bring out insightful yet simple-to-understand narratives. She is a Malayali but has spent most of her life living in Chennai. During her school days, she was an avid debater and loved participating in anything that involved holding a mic and standing on stage talking to a room filled with people. A diehard SRK fan, she can be found vibing to Indie music and Bollywood songs in her free time. She is a self-confessed cold coffee addict who won’t let a day pass without one, and is always café-hopping in search of the city’s best brew.
Source: Livemint — Companies
