Reliance Retail flags margin rebound after 24% profit drop

Net profit declined 24.3% to ₹2,611 crore and EBITDA margin narrowed 120 basis points to 7.8% after digital-commerce investments, input-cost absorption and the festive calendar shift into Q3. Gross revenue rose 6.4% to ₹91,716 crore on an adjusted basis. JioMart digital commerce grew 42% year-on-year.

Shop-floor P&L feels it immediately: dark stores and hyper-local riders now pull inventory from the same network that once served only walk-ins, raising fulfilment cost per order until density improves. A kirana competing on 30-minute delivery already sees the price pressure.

Online growth is being fuelled partly by heavy spending on customer acquisition, coupons and discounts.

The spend helps JioMart scale against Blinkit and Zepto but squeezes near-term returns for franchise partners and private-label margins inside Reliance formats. Offline grocery and electronics still generate the cash that funds the online push.

Watch the December quarter festive numbers and any fresh dark-store count update in the next filing; margin guidance for FY28 will set the tone for capital allocation.