Reliance Retail Ventures Limited (RRVL), the retail arm of Reliance Industries, reported a 24.3% year-on-year decline in consolidated net profit to ₹2,611 crore for the second quarter of financial year 2026-27 (Q2 FY27). Revenue from operations increased 5.8% to ₹80,220 crore, compared with ₹75,836 crore in the corresponding quarter last year.
The results reflect a mixed performance for India’s largest retail business. While revenue continued to grow across its physical stores and digital channels, operating EBITDA declined and finance costs increased sharply. The company also said that the shift in the festive calendar to the December quarter affected its September-quarter performance. Reliance Retail is continuing to invest in digital commerce, quick delivery and its physical store network as it prepares for the important festive shopping period.
Key Takeaways
- Revenue from operations: ₹80,220 crore, up 5.8% year-on-year.
- Gross revenue: ₹91,716 crore, up 6.4% on an adjusted comparison basis.
- Net profit: ₹2,611 crore, down 24.3% year-on-year.
- Operating EBITDA: ₹5,886 crore, down 11.1%.
- Finance costs: ₹905 crore, up 53.9%.
- Store network: 19,947 stores across approximately 77.5 million square feet.
- Reliance Consumer Products: Gross revenue of ₹8,266 crore, around 1.6 times the year-ago level.
Reliance Retail Q2 FY27 Revenue Rises to ₹80,220 Crore
Reliance Retail recorded revenue from operations of ₹80,220 crore in Q2 FY27, representing 5.8% growth from ₹75,836 crore in Q2 FY26.
Its gross revenue increased 6.4% to ₹91,716 crore on a comparison adjusted for the demerger of the Consumer Brands business.
The distinction between these two revenue measures is important. Revenue from operations reflects the company’s reported operating income, while gross revenue is a broader business measure used in its performance reporting.
The company continued to serve customers through its extensive network of physical stores, digital platforms and business-to-business channels. Its business includes grocery, fashion and lifestyle, consumer electronics, and digital commerce.
However, revenue growth was relatively modest compared with the company’s scale. The September quarter also faced an unfavourable festive-calendar comparison, as some shopping activity shifted into Q3 FY27.
Net Profit Declines 24.3% to ₹2,611 Crore
Reliance Retail’s consolidated net profit declined to ₹2,611 crore in Q2 FY27 from ₹3,451 crore in the year-ago quarter.
The decline was accompanied by weaker operating earnings and higher financing costs.
The company’s EBITDA from operations fell 11.1% to ₹5,886 crore. EBITDA is a measure of operating earnings before interest, taxes, depreciation and amortisation. It helps assess how much the business earns from its operations before financing and certain accounting expenses.
Finance costs increased 53.9% to ₹905 crore during the quarter. Higher finance costs can reduce the amount of operating earnings that ultimately reaches the bottom line.
The combination of lower operating EBITDA and higher finance costs contributed to the pressure on reported profitability.
Reliance Retail Q2 Financial Performance: FY26 vs FY27
| Financial metric | Q2 FY26 | Q2 FY27 | Year-on-year change |
|---|---|---|---|
| Revenue from operations | ₹75,836 crore | ₹80,220 crore | +5.8% |
| Gross revenue | — | ₹91,716 crore | +6.4%* |
| Net profit | ₹3,451 crore | ₹2,611 crore | -24.3% |
| EBITDA from operations | — | ₹5,886 crore | -11.1% |
| Finance costs | — | ₹905 crore | +53.9% |
Gross revenue growth is reported on a comparison adjusted for the demerger of the Consumer Brands business. Dashes indicate figures not provided in the cited comparison.
The financial performance shows that the company’s revenue continued to expand, but operating earnings and net profit moved in the opposite direction.
Festive Calendar Shift Affects Quarterly Performance
Reliance Retail said its business performance was affected by the shift in the festive calendar to Q3 FY27.
Festive periods are particularly important for Indian retailers because consumer spending typically increases around occasions such as Diwali and other major celebrations. Categories including fashion, electronics, grocery and gifting can experience higher demand during these periods.
When the timing of festivals changes between financial years, sales can shift between quarters. This can affect year-on-year comparisons even when underlying consumer demand remains relatively healthy.
The company said consumer demand remained healthy across its physical and digital presence. However, the December quarter will be important in assessing whether festive spending translates into stronger revenue and operating performance.
Reliance Retail Opens 303 Stores, Network Reaches 19,947
Reliance Retail opened 303 stores during Q2 FY27. After accounting for closures of unproductive outlets, its total store count stood at 19,947 at the end of the quarter.
The company’s retail network covered approximately 77.5 million square feet.
The store openings and closures reflect an approach that combines expansion with portfolio optimisation. Rather than focusing only on adding locations, the company is also reviewing stores that do not meet its productivity expectations.
Its physical network remains a major advantage, supporting customer access, product availability, digital fulfilment and integration with online shopping channels.
The challenge is to ensure that new stores generate sufficient sales to justify rental, employee, inventory and operating costs.
Reliance Consumer Products Revenue Grows 1.6 Times
Reliance Consumer Products Limited (RCPL), Reliance’s fast-moving consumer goods business, reported gross revenue of ₹8,266 crore in Q2 FY27, approximately 1.6 times its year-ago level.
The company has been expanding its consumer brands across everyday essentials and beverages.
Its daily essentials category, led by the Independence brand, recorded sales of ₹7,000 crore during the first half of FY27.
In beverages, Campa and other brands crossed ₹5,250 crore in sales during H1 FY27. The company said this represented more than 90% of its FY26 sales in the category within six months. It also reported a double-digit market share in key markets.
These figures refer to Reliance Consumer Products’ business and should not be confused with Reliance Retail’s ₹80,220 crore quarterly revenue from operations. The consumer products business is an important part of Reliance’s broader consumer strategy.
Digital Commerce and B2B Remain Important Growth Priorities
Reliance Retail is developing a business model that combines physical stores with digital commerce and B2B distribution.
Executive Director Isha Ambani said the company was building a future-ready retail business by integrating its store network with digital convenience, technology and consumer insights. She also described digital commerce and B2B channels as growing parts of the business.
These channels provide opportunities to reach customers beyond traditional store locations. They also require investments in technology, warehouses, logistics and fulfilment infrastructure.
Quick-commerce operations are another important part of the changing retail landscape. Faster delivery can improve customer convenience, but it also requires efficient inventory management and delivery networks.
The company will need to balance investment in these channels with operating margins and returns.
The Bigger Picture
Reliance Retail’s Q2 FY27 results highlight the difference between revenue growth and profitable growth. The company increased revenue from operations by 5.8%, but operating EBITDA fell 11.1% and net profit declined 24.3%. Higher finance costs added to the pressure, while the festive-calendar shift affected the quarterly comparison.
The company continues to benefit from its large physical network, digital platforms and growing consumer products portfolio. Its next challenge is to improve operating efficiency while investing in new retail formats and fulfilment channels. The December quarter will offer a clearer indication of festive demand and whether stronger sales can translate into improved earnings.
Looking Ahead
Reliance Retail is entering the festive quarter with nearly 20,000 stores and an expanding presence across digital commerce and B2B channels. Its management expects these channels, alongside its established physical business, to support its long-term retail strategy. The performance of grocery, fashion, lifestyle and consumer electronics will be important to watch.
Investors and industry observers will focus on revenue growth, operating EBITDA, finance costs, store productivity and the contribution of digital commerce. The company’s ability to improve margins while continuing to expand will determine whether its scale translates into stronger profitability in the coming quarters.
Frequently Asked Questions
1. What was Reliance Retail’s revenue in Q2 FY27?
Reliance Retail reported revenue from operations of ₹80,220 crore in Q2 FY27, up 5.8% from ₹75,836 crore in Q2 FY26.
2. How much did Reliance Retail’s profit decline?
Its consolidated net profit fell 24.3% year-on-year to ₹2,611 crore in Q2 FY27, compared with ₹3,451 crore in the corresponding quarter last year.
3. Why did Reliance Retail’s profit fall?
The decline came alongside an 11.1% fall in operating EBITDA and a 53.9% increase in finance costs to ₹905 crore. The company also cited the shift in the festive calendar to Q3.
4. How many stores does Reliance Retail operate?
Reliance Retail had 19,947 stores across approximately 77.5 million square feet at the end of Q2 FY27.
5. What was Reliance Consumer Products’ Q2 FY27 revenue?
Reliance Consumer Products reported gross revenue of ₹8,266 crore in Q2 FY27, approximately 1.6 times its year-ago level.
6. Who leads Reliance Retail?
Reliance Retail Ventures is part of Reliance Industries. Isha Ambani is its executive director, while Mukesh Ambani is chairman and managing director of Reliance Industries.
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