Reliance Retail Q2 results: Net profit rises 1.3% to ₹2,836 crore, adds 464 new stores during the quarter

MUMBAI: Reliance Retail Ventures Ltd, the retail arm of Reliance Industries Ltd, reported a net profit of ₹2,836 crore for the quarter ended September, reflecting a 1.3% year-on-year increase. In the same quarter last year, its profit stood at ₹2,800 crore.

Revenue from operations drops by 3.5% to ₹66,502 crore, compared to ₹68,937 crore in the corresponding period last year.

EBITDA for the quarter rose to ₹5,850 crore from ₹5,830 crore in the year-ago second quarter. Margins improved by 30 basis points to 0.3%.

The company attributed a rise in depreciation to an expanded asset base, driven by new store openings and enhanced supply chain infrastructure.

Reliance Retail continued its aggressive expansion, adding 464 new stores during the quarter, bringing the total store count to 18,946, covering 79.4 million sq ft.

“Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership. We continue to strengthen our customer proposition with innovative products that spans everyday essentials to premium offerings. By continuously enhancing our assortment and innovating across categories, we are creating a shopping experience that meets the evolving needs of our customers and reinforces our leadership in the retail space," said Isha Ambani, executive director, Reliance Retail.

Footfalls across all formats exceeded 297 million during the quarter, marking a 14% year-on-year growth. Digital commerce and new commerce businesses also grew, contributing 17% of total revenue.

“The retail segment continues to increase its consumer touchpoints and product offerings across physical and digital channels. The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base. The retail business continues to partner with renowned domestic as well as global players, expanding its basket of quality product offerings. The focus on strengthening our Retail operations will help us rapidly scale-up this business in the coming quarters and years and sustain our industry-leading growth momentum.,” added Mukesh D. Ambani, chairman and managing director of Reliance Industries.