Reliance Retail Ventures posted a net profit of ₹2,836 crore in Q2 of FY25, up 1.3 per cent on-year, though revenue from operations fell 3.5 per cent to ₹66,502 crore on subdued consumer demand, especially in the fashion and lifestyle segment.
EBITDA was flat at ₹5,675 crore, and the EBITDA margin rose a tepid 30 bps to 8.8 per cent in the quarter.
The company ended the quarter with 18,946 stores, up 1.6 per cent on-year, spread across 79.4 million square feet, an addition of 11 per cent. It added 464 new stores in the quarter. The company said it was scaling up its digital capabilities.
Apart from weak demand, the financials were also affected by its continued focus on streamlining operations and calibrated approach to B2B business to improve margins.
The focus on scaling up digital commerce and new commerce continued with these channels contributing to 17 per cent of total revenue. Its registered customer base grew to 327 million.
During the quarter, it entered into exclusive partnerships with Delta Galil to expand its presence in the lingerie and active wear categories and launched ASOS in India.
In the consumer electronics segment, digital stores maintained their growth momentum, led by strong growth in average bill value. The network of digital stores crossed 650 stores. The services business resQ, saw service volume grow 28 per cent. It introduced several new products under its own brand, even as it doubled its merchant base.
Formats such as Smart Bazaar and Smart Stores led the growth in grocery, with categories such as confectionaries, fruits and apparel seeing double digit growth.
JioMart is scaling up its quick commerce service through its own store network, the company said.
In the fashion and lifestyle segment, the company said it was trying to keep customers engaged by maintaining ‘newness’ in stores and various marketing initiatives around festivals.