Reliance Retail grows revenue and profitability with a strategic revamp

Reliance Retail, the retail arm of oil-to-telecom-to-retail conglomerate Reliance Industries, announced its fourth quarter results for the fiscal year 2025 in the after-market hours on Friday. The company reported an increase in revenue to ₹88,637 crore, up from ₹76,683 crore in the same quarter last year. This YoY growth highlights the continued expansion and robust performance of its retail business amid favourable market conditions.

In FY25, the business focused on a strategic recalibration of our store network, aimed at improving operational efficiencies and long-term sustainability, the company's statement to the stock exchanges said.

Retail business opened 1,089 new stores with total store count at 19,340 and total area under operation 77.4 million square feet. The company expanded hyper-local deliveries, launced Shein (an international women's fashion brand), and increased the number of vendors.

The launch of several new brands helped in delivering a 30% growth in sales of its own brands, the management said in an address post earnings.

Executive Director Isha Ambani credited the company's growth to improved efficiencies, innovative formats, a sharper product mix, and continued investments in technology and customer experience.

The company's earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter also saw a notable rise, reaching ₹6,711 crore, up 14.1% from a year earlier. However, it was less than the ₹6,840 crore EBITDA in the immediately preceding quarter ended December 2024.

The EBITDA margin remained 7.6%, unchanged from December 2024 and the same as March 2024.

"We were expecting a decline on a sequential basis (in Reliance Retail). From that perspective, the numbers look quite okay, so they are, again, better than expectations," Naveen Kulkarni of Axis Securities told CNBC-TV18.

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