Reliance Retail Q3 Results: Digital Commerce Contribution Steady, Campa Turnover To Top Rs 1,000 Crore

Reliance Retail Ventures Ltd.'s consolidated net profit rose 10% and revenue increased 7% year-on-year in the third quarter of the current financial year.

The net profit of the Isha Ambani-led retail giant climbed to Rs 3,458 crore in the quarter ended Dec. 31, 2024, as per the results declared by the company on Thursday. In the corresponding quarter of the previous fiscal, it stood at Rs 3,145 crore.

The company's top line rose to Rs 79,595 crore, as compared to Rs 74,373 crore in the same quarter of fiscal 2024.

Reliance Retail's operating profit, or the earnings before interest, tax depreciation and amortisation rose 9% to Rs 6,828 crore, whereas its margin against the top line expanded by 20 basis points in the same period to 8.6%.

RRVL Q3 FY25 Highlights (Consolidated, YoY)

• Net Profit rose 10% to Rs 3,458 crore versus Rs 3,145 crore.

• Revenue increased 7% to Rs 79,595 crore versus 74,373 crore.

• Ebitda rose 9% to Rs 6,828 crore versus Rs 6,238 crore.

• Margin expanded 20 basis points to 8.6% versus 8.4%.

The business opened 779 new stores, with the total reaching 19,102 and recorded footfalls of nearly 30 crore, which translated to a 5% year-on-year growth.

"The focus on scaling up digital commerce and new commerce continued with these channels contributing to 18% of total revenue," the retailer said in a press release.

However, the company's chief financial officer, Dinesh Taluja, in a post-earnings presentation, indicated that the share of digital and new commerce segments in the revenue pie did not expand or contract much, but "remains steady."

The CFO also said that while there was broad-based growth across categories, the "star" was the grocery business. He added that the company's online grocery business was benefiting from an already existing infrastructure and network.

Meanwhile, JioMart's product range diversification led to the seller base increasing by 33% on the year, with the hyperlocal proposition being operated across 4,000 pin codes as of Dec. 31.

On the consumer brands front, Reliance Retail said that in some states, the Campa brand has over 10% market share in the sparkling beverages category. It did not mention the states in question.

Reliance had acquired soft drink brand Campa in 2022, and launched fast-moving consumer goods brand Independence in the same year. Now, it expects both brands to exceed a turnover of Rs 1,000 crore each in the current fiscal.

Taluja, in the post-earnings presentation, said that the company should see healthy growth for its consumer brands business in coming quarters.

"Reliance Retail delivered strong performance during the quarter, led by festive buying across consumption baskets," said Isha Ambani, executive director, Reliance Retail.

Shares of Reliance Retail's parent company, Reliance Industries, closed 1.31% higher at Rs 1,268.70 apiece on the BSE, compared to a 0.42% advance in the benchmark Sensex.