Reliance Retail reported a net profit of ₹2,805 crore for the April-June quarter of FY27, a decline of 14.1% year-on-year, according to an exchange filing on Friday. Revenue for the quarter increased by 7.4% year-on-year to ₹90,408 crore.
Digital Commerce Growth
The company operates across various sectors, including grocery, consumer electronics, fashion, lifestyle, and online commerce. Dinesh Taluja, chief financial officer of Reliance Retail, noted that
the number of transactions is growing much faster than revenue,
attributing this to the increasing contribution of digital commerce to overall revenues. The company’s EBITDA for the quarter was ₹6,309 crore, down 1.1% year-on-year, with an EBITDA margin of 7.9%, reflecting an 80 basis point decline due to planned investments in digital commerce.
FMCG Revenue Surge
Reliance Consumer Products Ltd, a subsidiary of Reliance Retail, saw its FMCG revenue double to ₹8,600 crore in the June quarter compared to the previous year. The overall revenue growth of 7.4% was supported by gains in major consumption categories, including grocery, fashion, and consumer electronics. The company also reported an 11.6% year-on-year revenue growth when adjusted for the demerger of its consumer brands business, which occurred in December 2025. Investors are advised to consider the potential for digital commerce growth against the current pressure on profit margins.
Related coverage: Reliance Q1 profit falls 22% YoY to ₹20,946 crore.
The decline in net profit and EBITDA margins could impact investor sentiment towards Reliance Retail, particularly in the consumer discretionary sector. Investors may react to the company's ability to leverage its digital investments for margin recovery. Watch for updates on Reliance Retail's digital strategy and its impact on future earnings in the upcoming quarterly reports.