Gross revenue climbed to Rs 91,716 crore even after accounting for the demerger of the Consumer Brands business and a postponed holiday shopping season. However, operating EBITDA contracted by 11.1% to Rs 5,886 crore, pulling operating margins down to 7.3%. Earnings were also dampened by an exceptional impairment charge of Rs 108 crore related to 7-Eleven. Overall transaction volumes nevertheless advanced by 7% across major retail categories.
Key points
Elevated interest rates and higher borrowings drove up finance costs, significantly dampe…: Elevated interest rates and higher borrowings drove up finance costs, significantly dampening overall quarterly profitability.
The retailer expanded its registered customer base by 10% year-on-year to surpass 400 mil…: The retailer expanded its registered customer base by 10% year-on-year to surpass 400 million shoppers.
Operating profits were squeezed as the business absorbed input-cost inflation and acceler…: Operating profits were squeezed as the business absorbed input-cost inflation and accelerated capital investments into digital commerce platforms.
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On a sequential basis, net profit declined 6.9% from Rs 2,805 crore reported in Q1FY27.
The company's gross revenue, however, increased 6.4% YoY to Rs 91,716 crore in Q2FY27, compared with Rs 86,169 crore in the year-ago period. The growth came despite the absence of major festive occasions during the quarter, with the festive calendar shifting to the December quarter.
Reliance Retail said its gross revenue growth was 6.4% after adjusting for the demerger of its Consumer Brands business.
EBITDA from operations declined 11.1% YoY to Rs 5,886 crore from Rs 6,624 crore in Q2FY26.
The EBITDA margin from operations contracted to 7.3% in Q2FY27 from 8.7% in the corresponding quarter last year.
The company reported EBITDA of Rs 6,228 crore before a one-time charge of Rs 108 crore, with the margin at 7.8%. The margin was down 120 basis points year-on-year, reflecting planned investments in digital commerce, input-cost inflation absorbed by the company for customers and the shift in the festive calendar.
EBITDA after the one-time charge stood at Rs 6,120 crore,…
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