Reliance Retail Ventures Ltd. reported a weaker June quarter as higher investments in its digital business and lower sequential revenue weighed on profitability, even as customer additions, transactions and digital commerce continued to register strong growth.
The retail arm of Reliance Industries reported an 8% sequential decline in net profit to Rs 3,271 crore from Rs 3,563 crore in the March quarter.
Revenue declined 8% quarter-on-quarter to Rs 90,409 crore from Rs 98,457 crore, while Ebitda fell 9% to Rs 6,309 crore from Rs 6,921 crore. Ebitda margin contracted marginally to 6.98% from 7.03%, with the company attributing the weaker operating performance to lower revenue and higher investments in its digital business.
During the quarter, Reliance Retail opened 252 new stores, taking its total store count to 20,169, with a retail area of 78.4 million sq. ft. The registered customer base expanded 10.6% year-on-year to 396 million, while the business served 8.5% more unique customers across formats.
Customer engagement remained strong, with the company recording 568 million transactions during the quarter, up 46% year-on-year.
Digital commerce continued to gain traction. Grocery digital commerce average daily orders surged 116% year-on-year, while 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 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, Shein crossed 30 million app installs, and AJIO Luxe expanded its portfolio to more than 1,000 brands.
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.
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