Consolidated Reliance Retail Ventures Limited (RRVL) has released its financial results for the second quarter of FY25, reporting a revenue of ₹76,302 crore, which represents a marginal decline of 1.1% compared to ₹77,148 crore in the same period last year. The decrease is attributed to subdued demand in the Fashion and Lifestyle (F&L) sector and an ongoing focus on operational streamlining and margin improvement in its B2B business.
Despite the revenue dip, the company’s EBITDA rose slightly to ₹5,850 crore, a 0.3% increase from ₹5,830 crore in Q2 FY24. EBITDA from operations reached ₹5,675 crore, reflecting a 1.0% year-over-year growth, with an EBITDA margin from operations of 8.5%, up 40 basis points year-over-year.
Operational highlights include:
- New Store Openings: RRVL opened 464 new stores during the quarter, increasing its total store count to 18,946.
- Operational Area: The total area under operation expanded to 79.4 million square feet, up from 71.5 million square feet in the same quarter last year.
- Customer Footfall: The business recorded 297 million footfalls across its formats, a notable 14.2% increase compared to 260 million in Q2 FY24.
- Registered Customer Base: The number of registered customers grew to 327 million, a 16.4% increase from the previous year.
- Transactions: Total transactions increased by 8.9% year-over-year to 343 million.
The business remained focused on maintaining fashion newness in the stores which is helping its engagement with customers. Businesses benefited from various marketing initiatives during regional festivals like Onam, Ganesh Chaturthi and Pujo to drive footfalls and transactions.
- The Fashion and Lifestyle vertical has been scaling up new formats which continue to gain positive traction with customers. Youth-focused fashion retail format, Yousta, has crossed a milestone of 50 stores within its first year of launch.
- AJIO delivered steady performance as it expanded its product catalogue by over 25% Y-o-Y and added over 1.8 million new customers. AJIO has been strengthening its portfolio through new brand launches like ASOS, H&M, and Timberland, to name a few.
- Premium Brands business launched its first Armani Café to further strengthen its F&B portfolio. Hamleys format continues to do well and is undertaking a focused international expansion.
- Ajio Luxe delivered strong growth with the options count increasing by 28% Y-o-Y and the brand portfolio crossing 725 brands.
- The Jewellery business delivered growth led by improvement in ABV and the launch of 9 new collections during the period.
Isha M. Ambani, Executive Director, Reliance Retail Ventures Limited, said “Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership. We continue to strengthen our customer proposition with innovative products that span everyday essentials to premium offerings. By continuously enhancing our assortment and innovating across categories, we are creating a shopping experience that meets the evolving needs of our customers and reinforces our leadership in the retail space.”