Reliance Retail Ventures earnings rise 10% driven by JioMart and grocery business in Q3FY25

Accreditation Retail Ventures Ltd., the consumer arm of the Mukesh Ambani-led diversified Reliance Group, reported a 10% year-on-year increase in its profit after tax (PAT) for the quarter ending December 31, 2024. During this period Reliance Retail’s PAT reached Ventures (RRVL) Rs 3,458 crore, up from Rs 3,145 crore in the same quarter a year earlier.

Operating income also grew by 7% over the previous year, to Rs 79,595 crore from Rs 74,373 crore. This resulted in a 3.3% increase in revenue from operations to Rs 212,357 crore for the nine-month period between April and December 2024, up from Rs 205,469 crore reported in the same period the previous year.

“The retail sector delivered a strong performance, with noteworthy contribution from all formats. The business has ably benefited from higher consumption amid festive demand during the quarter,” Mukesh Ambani, Chairman and Managing Director, Reliance Industries, said in a statement.

In Q3 FY25, RRVL improved its earnings before interest, tax, depreciation and amortization (EBITDA) by 9.8% YoY to Rs 6,828 crore, up from Rs 6,238 crore. EBITDA margin remained at 8.6%, up 20 basis points from 8.4% in Q3FY2024, but declined 20 basis points sequentially. One basis point is equivalent to one hundredth of a percentage point.

Despite it being a festive quarter, footfall at Reliance’s retail outlets was down from the previous quarter. During the last quarter, the company recorded 296 million feet in its stores, a decrease from 297 million in the second quarter of the fiscal year 2025, while it increased by 5% on an annual basis from 282 million in the third quarter of the fiscal year 2024. .

According to Ambani, a superior understanding of customer needs and preferences has enabled Reliance Retail to serve a wide range of demographic profiles “with the right product, at the right time, through the right channel”. He added: “With customer-centric innovation at its core, the company continually seeks to enhance the shopping experience for its customers through its wide reach and ever-expanding product basket.”

While RRVL added 779 new stores to its portfolio, taking the total number of stores under its umbrella to 19,102, the area managed by the major retailer declined sequentially. In the third quarter, occupied area was 77.4 million square feet, down from 79.4 million square feet. In the second quarter but up from 72.9 million square feet. In the third quarter of fiscal year 2024.

According to the company, its grocery business grew at a healthy pace of 37% year over year led by the big box format. There was growth across categories, with general merchandise and value apparel growing 20% ​​year-on-year, premium personal care and cosmetics growing 16% year-on-year, while the Metro business achieved its highest ever festive sales. JioMart expanded product range with 33% YoY increase in seller base, while Milkbasket recorded 20% YoY growth in monthly active users and 24% YoY growth in GMV.

Consumer brands continued to grow across categories with nine-month FY25 revenue at Rs 8,000 crore. Campa & Independence – Two leading FMCG brands are gaining traction in the markets. According to the company, Campa has over 10% market share in the sparkling beverage category in select states. Sales of both brands are expected to cross Rs 1,000 crore each in FY25.

“Reliance Retail delivered a strong performance during the quarter led by festive purchasing across consumption hampers. Our focus on offering a wide range of products at attractive prices and value proposition continues to attract customers to our stores and digital platforms. We are creating through JioMart – express deliveries, scheduled deliveries coupled with Milkbasket subscription services, and a seamless shopping experience catering to diverse customers across all categories and demographics.”