Reliance Retail Sees 16% Surge in Q4 Net Profit Driven by Consumer Spending Boost

Reliance Retail Ventures (RRVL), the retail division of Reliance Industries (RIL), has reported impressive financial results, showcasing a 29.1% increase in net profit, reaching Rs 3,545 crore for the quarter ending March 31, 2025 (Q4FY25). This surge in profitability can be attributed to heightened consumer spending driven by local festivals, aggressive promotional strategies, and the wedding season. The company’s operational EBITDA also saw a significant rise of 14.6%, totaling Rs 6,510 crore in the same quarter.

Strategic Growth and Operational Efficiency

Mukesh Ambani, the chairman of RIL, emphasized the retail segment’s robust growth, stating, "In FY25, we strategically recalibrated our store network to enhance operational efficiency and ensure long-term sustainability. Our expanded product offerings and improved user experience have significantly boosted customer engagement."

Impressive Revenue Figures

In Q4, Reliance Retail reported a 15.7% year-on-year increase in gross revenue, amounting to Rs 88,620 crore, while net revenue rose by 16.3% to Rs 78,622 crore. Although there was a slight sequential decline of 1.2% in net revenue, the company still managed a 2.5% increase in net profit.

FMCG Growth: The fast-moving consumer goods (FMCG) sector, under Reliance Consumer Products, achieved a remarkable Rs 11,450 crore in FY25, marking it as one of the fastest-growing FMCG companies in India. CFO Dinesh Taluja noted that this revenue milestone was reached in just the second year of operation.
Brand Performance: Reliance Retail anticipates that its consumer brands, including Campa and Independence, will surpass Rs 1,000 crore in turnover by the end of FY25, reflecting steady sales growth.

Expanding Store Network

During the latest quarter, Reliance Retail launched 1,085 new stores, bringing the total to 19,340 locations covering 77.4 million sq ft. For FY25, the company opened 2,659 stores and achieved a 7.9% year-on-year increase in gross revenue, totaling Rs 330,870 crore.

Focus on Digital Commerce

In the first quarter of the year, Reliance Retail also focused on enhancing its digital and new commerce platforms, which now contribute 18% to the company’s overall revenue. This shift towards digital channels is a crucial part of their growth strategy.

Isha Ambani, executive director of Reliance Retail Ventures, highlighted, "Our strong growth in revenue and profits is a result of improved efficiencies, innovative formats, a refined product mix, and ongoing investments in technology and customer experience. We are committed to shaping the future of retail with agility and purpose."

Consumer Electronics and Grocery Success

The consumer electronics segment maintained its growth trajectory, driven by a 26% year-on-year increase in average transaction value and a 200 basis point improvement in conversion rates during Q4. Additionally, the grocery division outperformed expectations, showcasing the strength of Reliance Retail’s diverse offerings.

Furthermore, the fashion brand Shein has been successfully integrated into the Reliance ecosystem, now available across the Ajio app, website, and shop-in-shop formats.

With these strategic moves and impressive financial performance, Reliance Retail continues to solidify its position as a leader in the Indian retail landscape.