India's Reliance Industries' Q1 profit up; retail, fashion fuel growth

Commenting on the results, Mukesh D Ambani, chairman and managing director, Reliance Industries Limited said: “Reliance has begun FY26 with a robust, all-round operational and financial performance. Consolidated EBITDA for 1Q FY26 improved strongly from a year-ago period, despite significant volatility in global macros.”

Reliance Retail Ventures Limited (RRVL), the conglomerate’s retail arm, posted quarterly revenue of ₹84,171 crore (~$9.76 billion), reflecting a year-on-year growth of 11.3 per cent. EBITDA rose 12.7 per cent to ₹6,381 crore, with EBITDA margins improving by 20 basis points to 8.7 per cent. Revenue from operations grew in tandem, supported by strong performance in grocery, fashion and lifestyle segments, the company said in its financial statement.

During the quarter, the company added 388 new stores, bringing the total retail footprint to 19,592 stores across 77.6 million square feet. The registered customer base rose to 358 million, marking a 13.3 per cent annual increase, while total transactions jumped 16.5 per cent year-on-year to 389 million.

The fashion and lifestyle segment stood out with robust growth, driven by new formats such as Gap, Azorte and Yousta, which registered a 59 per cent year-on-year rise and now collectively operate more than 170 stores. The company continued expanding its presence in non-apparel categories such as footwear, beauty and accessories.

Ajio, Reliance’s e-commerce fashion platform, saw notable improvements in customer engagement, with the revenue share from new users rising by 150 basis points year-on-year to 18 per cent, and average bill value increasing by 17 per cent. The platform expanded its catalogue by 44 per cent to over 2.6 million options, supported by the introduction of several new brands. Ajio Rush, a 4-hour delivery service launched in six cities, enhanced convenience and drove higher average order values and reduced returns.

Shein, which returned to India through a partnership with Reliance, gained strong traction with over 2 million app downloads and 20,000+ live products.

Premium offerings also gained momentum, with Ajio Luxe expanding its portfolio to 875 brands and Hamleys launching the Green Club, a sustainability initiative for children, while expanding into new geographies. The business also introduced the Mothercare Everyday range to further strengthen its kidswear offering, the statement added.

Isha M Ambani, executive director, Reliance Retail Ventures Limited, said “Reliance Retail delivered resilient performance during this quarter driven by our relentless focus on operational excellence, geographical expansion and sharper product portfolio. Our continued investments in cutting-edge technologies and differentiated product offerings have enabled us to serve our customers better and scale with agility.”

In the polyester segment, margins were impacted, with the chain margin declining to $446/MT from $489/MT in the same quarter last year. Paraxylene (PX) margins over naphtha dropped by 34 per cent due to oversupply, although margins for monoethylene glycol (MEG) improved from a low base, thanks to lower inventory levels at Chinese ports. Downstream polyester product margins remained stable, supported by soft input prices and improved global demand.

ALCHEMPro News Desk (KD)