Reliance Retail Ventures, the retail arm of Reliance Industries, reported a decline in its standalone net profit for the quarter ending March 2025. The company’s net profit fell by 11.53% to Rs 714 crore compared to Rs 807 crore in the corresponding quarter of the previous year. The decline in profit was attributed to increased operating expenses and higher tax provisions.
Despite the decline in net profit, Reliance Retail Ventures’ revenue from operations grew by 17.44% to Rs 45,436 crore in the quarter under review, compared to Rs 38,711 crore in the same quarter of the previous year. The growth in revenue was driven by strong sales across all its business segments, including grocery, electronics, and fashion.
The company’s operating expenses increased by 23.45% to Rs 42,633 crore in the quarter, primarily due to higher employee benefits expenses, rent, and marketing expenses. The higher operating expenses put pressure on the company’s profitability, leading to the decline in net profit.
Reliance Retail Ventures’ EBITDA (earnings before interest, tax, depreciation, and amortization) margin declined to 5.44% in the quarter compared to 6.23% in the corresponding quarter of the previous year. The company’s tax expenses also increased by 33.33% to Rs 333 crore in the quarter, which further dented its net profit.
In a statement, Reliance Retail Ventures said that the company’s performance was impacted by the challenging business environment and intense competition in the retail sector. However, the company remains optimistic about its growth prospects and is focused on expanding its presence across the country through its omnichannel retail model.
Reliance Retail Ventures has been aggressively expanding its physical store network and e-commerce platform, JioMart, to tap into the growing demand for online shopping. The company plans to continue investing in its digital transformation and expanding its product offerings to drive growth in the coming quarters.
Overall, while Reliance Retail Ventures’ net profit declined in the March 2025 quarter, the company’s revenue growth and expansion plans suggest that it is well-positioned for long-term growth. However, the company will need to manage its operating expenses and taxes more efficiently to improve its profitability and deliver better returns to its shareholders.