Reliance Retail Q2 FY25 Report: ₹2,935 Crore Profit, 464 New Stores, and 14% Growth in Footfalls

Reliance Retail Ventures Limited (RRVL) delivered a stellar performance in the second quarter of FY25, continuing to expand its presence and grow its revenue base. The company reported a net profit of ₹2,935 crore, marking a 20% growth compared to the previous quarter. This strong financial performance comes amidst increasing competition in the retail sector, but Reliance Retail's unique business model and strategy have allowed it to thrive. Its diversified approach, spanning both physical and digital channels, has enabled the company to meet the evolving needs of a wide customer base.

Over the quarter, Reliance Retail added 464 new stores, expanding its total number of outlets to 18,946 across the country. These stores operate on a vast scale, covering 79.4 million square feet of retail space. The company's robust retail network attracted more than 297 million footfalls during the quarter, reflecting a 14% year-on-year increase. This growth in foot traffic can be attributed to the company’s continuous efforts to enhance its product offerings and improve customer engagement, both in physical stores and online.

Reliance Retail has been investing heavily in technology and infrastructure, which has proven to be a key factor in its success. The company’s digital commerce initiatives, particularly through JioMart, have gained significant traction, contributing 17% to the company's overall revenue. This segment continues to witness substantial growth, especially in non-grocery categories. The average order value (AOV) on JioMart doubled year-on-year, driven by a wider range of products and an expanded seller base.

In addition to digital growth, Reliance Retail’s consumer electronics business saw a remarkable performance, with revenues increasing by 60% year-on-year. This surge was largely driven by the “Digital India” campaign, which promoted the company's extensive range of electronics products. Reliance has also expanded its network of digital electronics stores, which now surpasses 650 outlets across the country. The company’s service arm, resQ, which provides on-demand technical support for electronics, saw a 28% year-on-year increase in service volumes and expanded its presence to over 150 cities.

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On the grocery front, Reliance Retail has maintained steady growth through its Smart Bazaar and Smart store formats. Key categories like confectioneries, snacks, and fruits recorded significant year-on-year growth, with categories like apparel seeing a 49% increase. The grocery division continues to benefit from the company’s strategic focus on delivering value to customers through competitive pricing and product innovation.

One of the highlights of the quarter was Reliance’s impressive performance on Independence Day, where the company achieved its highest-ever single-day sales during the “Full Paisa Vasool Sale.” This event not only boosted revenue but also reinforced the company’s position as a leader in the Indian retail market.

Although the Fashion and Lifestyle segment faced some challenges due to weaker demand, Reliance Retail responded by launching new product innovations and customer engagement strategies. During the quarter, the company entered into exclusive partnerships, including one with Delta Galil, aimed at expanding its lingerie and activewear offerings. Additionally, the company introduced the popular ASOS brand in India, further diversifying its fashion portfolio.

AJIO, Reliance Retail’s online fashion platform, has also been performing well, adding 1.8 million new customers in Q2 FY25. The platform expanded its product catalogue by 25%, introducing new brands like H&M, Timberland, and ASOS, making it one of the most sought-after fashion destinations in India. Moreover, Reliance Retail's youth-centric brand, Yousta, crossed the 50-store mark within its first year of launch.

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In terms of operational performance, Reliance Retail’s EBITDA grew by 0.3% year-on-year to ₹5,850 crore. The company’s operational margins improved by 40 basis points to 8.5%, a testament to its efficiency in managing costs while expanding its business. The company has also maintained its focus on scaling its New Commerce initiatives, which have deepened its engagement with the trader and HoReCa (Hotels, Restaurants, and Caterers) segments.

Reliance Retail has positioned itself as a leader in the Indian retail sector, not only through its wide retail network but also through its ability to innovate and adapt to market trends. The company’s continued investments in technology and digital commerce platforms are laying the groundwork for future growth. With a registered customer base of over 327 million, Reliance Retail is one of the most preferred retailers in the country, and its market leadership is expected to strengthen further in the coming years.

[Disclaimer: This article provides information based on public data and is intended for informational purposes only. This content is not meant to serve as financial or investment advice.]