Reliance Consumer Products (RCPL), which owns the group’s FMCG business, more than doubled its total revenue during the quarter to Rs. 8,600 crore, though it did not disclose EBITDA or profit.
Addressing analysts in the earnings announcement, the management said that daily essentials under the Independence brand during the quarter grew at Rs. 3,200 crore in sales, while Campa-led Beverages generated sales of Rs. 2,900 crore was contributed.
On retail, Reliance said the grocery, fashion and consumer electronics businesses posted double-digit underlying growth, but operating margins remained under pressure for the third straight quarter as a rising share of e-commerce sales and investments in digital infrastructure pushed up fixed costs.
Isha M., Executive Director of Reliance Retail. Ambani said the company delivered a resilient performance in the first quarter with growth in key consumption baskets. “Our continued investment in digital commerce underscores the transformative power of our digital platform,” she said.
Reliance Retail’s total revenue rose 7.4% to Rs. 90,408 crores. Excluding the demerged FMCG business, total revenue growth stood at 11.6%. EBITDA margin remained unchanged at 7.9% sequentially, as against 8.7% in the year-ago quarter.
Management said retail margins are likely to remain under pressure in the next few quarters as Reliance continues to invest in expanding its e-commerce business, particularly fast-paced commerce.
“Our three-year objective in retail is to double EBITDA through growth and better economics. We are building the foundation of our e-commerce business and focusing on quality, not just volume. Return on capital and EBITDA will improve as the business matures. If the market doesn’t perform, we will pull back,” said Dinesh Tailja, Chief Financial Officer, Reliance Retail.
The company opened 252 stores during the quarter, taking its network to 20,169 stores spread over 78.4 million square feet.
Regarding the FMCG business, RCPL Executive Director Ketan Modi said Campa will enter Australia this month and Africa in the next quarter. He also said Reliance has converted its beverage joint venture with Socio into a majority-owned subsidiary and is setting up an edible oil plant in West Bengal.
Reliance Retail’s grocery e-commerce business, led by JioMart, reported 116% year-on-year growth in average daily orders, with online sales accounting for 13.4% of consumer grocery revenue.
Consumer Electronics revenue grew 16% YoY, aided by strong brand partnerships that ensured product availability despite global supply constraints.
The fashion business reported 4% revenue growth, driven by merchandise refreshes and store upgrades. E-commerce accounted for 27% of apparel and footwear sales, up 490 basis points from a year ago. Fashion quick-commerce platform Ajio Rush reported 136% quarter-on-quarter growth in orders, while the Shein app surpassed 30 million downloads.
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