Reliance Retail Ventures Limited reported a 24.3 per cent year-on-year drop in net profit to ₹2,611 crore for the second quarter of 2026-27, weighed down by higher operating costs, finance charges, and a shift in the festive calendar. Revenue from operations rose 5.8 per cent to ₹80,220 crore, while gross revenue climbed 6.4 per cent to ₹91,716 crore after adjustments for the demerger of its consumer brands business, Livemint reported.
Costs, Margins, and the Festive Shift
The profitability contraction reflects a confluence of headwinds during the July–September quarter. Earnings before interest, taxes, depreciation, and amortisation (EBITDA) from operations slipped 11.1 per cent to ₹5,886 crore. The company took a one-time impairment charge of ₹108 crore following the complete discontinuation of its 7-Eleven stores in India by the end of September. Furthermore, finance costs surged 53.9 per cent year-on-year to ₹905 crore due to higher borrowings and interest rates.
Operational margins faced pressure from multiple fronts. Consumer price inflation stood at 5.5 per cent, food inflation reached 7.7 per cent in September, and a deficient monsoon across key agricultural states made rural demand uneven. At the same time, the rupee’s weakness raised the landed cost of imported electronics and fashion products. Adding to the top-line pacing, major festivals like Navratri and Diwali fell entirely within the third quarter this year, leaving the September quarter devoid of peak seasonal retail spikes.
Digital Expansion and Store Footprint Realignment
Despite margin compression, leadership emphasized long-term structural investments. Mukesh Ambani, chairman and managing director of Reliance Industries, noted that consumer demand remained healthy across formats. Isha Ambani, Executive Director, highlighted that the firm’s digital commerce and B2B channels are scaling rapidly, funded by the profits of offline business.
Digital commerce proved to be a primary growth engine. Grocery B2C online revenue jumped 42 per cent year-on-year, while JioMart expanded its network to more than 5,000 stores across over 1,000 cities. Physical operations underwent targeted consolidation as the company opened 303 stores but saw a net reduction of 222 outlets, bringing the total store count to 19,947 across 77.5 million square feet.
Consumer Products and Subsidiary Momentum
Reliance Consumer Products Ltd (RCPL) reported a 1.6-fold surge in quarterly gross revenue to ₹8,266 crore. First-half revenue for FY27 reached ₹16,900 crore, capturing roughly 80 per cent of the previous financial year’s total sales in just six months. The Independence daily essentials brand generated ₹7,000 crore in the first half, while the Campa beverage portfolio surpassed ₹5,250 crore, achieving over 90 per cent of the brand-led category’s sales for the whole of FY26 within the same six-month window.
Financial Performance and Operational Metrics
On a sequential basis, net profit declined 6.9 per cent from ₹2,805 crore in the June quarter. Gross revenue in the corresponding quarter of the previous financial year stood at ₹86,169 crore, while profit after tax in Q2FY26 was ₹3,451 crore. EBITDA before the one-time charge stood at ₹6,228 crore, giving an EBITDA margin of 7.8 per cent, down 120 basis points year-on-year. EBITDA after the one-time charge was ₹6,120 crore, compared with ₹6,810 crore in Q2FY26. Reliance Retail’s registered customer base crossed 400 million, marking 10 per cent year-on-year growth.
