Reliance Retail Q1 results show steady growth; store rationalisation eases, digital scale-up in focus

Reliance Retail’s growth momentum remained intact in the first quarter of FY26, with revenue rising 11.3% year-on-year. The quarter marks a shift in strategy, with store closures slowing, core grocery categories maintaining double-digit growth, and JioMart expanding beyond metros, according to a report by Elara Securities.

The report highlights that Reliance Retail’s same-store sales growth (SSSG) came in at 8.4% YoY, driven by a 3.6% rise in store count. “The reduced pace of closures suggests that RRVL is set to grow on its refined store portfolio, with focus on store-level productivity,” says Karan Taurani, executive vice president of Elara Capital.

In grocery, key categories such as Fresh and Packaged Foods grew 15% and 13% respectively, while Home and Personal Care rose 5%. However, revenue per transaction fell 4.5% even as total transactions grew 16.5%, a signal that top-up purchases are shifting to quick commerce platforms.

"Similar to DMart, Reliance grocery stores in metros (~30% of RRVL revenue) may have been hit by quick commerce," says Taurani. "The scale of JioMart in these markets is nascent to capture channel growth. Addressing this will further ensure growth momentum."

Store churn, which had been a sore spot in FY25 with as much as 81% of newly opened stores shutting down, seems to be stabilising. In Q1FY26, the closure rate dropped to 35% of newly opened stores, with net store additions of 252. The total store count now stands at 19,592, up 3.6% YoY, as per the report.

The recalibration of store formats continues as well, with the average area per store now at 3,961 sqft, which is smaller than the five-quarter average of ~4,148 sqft, signalling an efficiency-oriented approach.

In parallel, JioMart continued its expansion, especially in non-metro regions, a territory less penetrated by established quick-commerce players. Daily hyperlocal orders rose 68% QoQ and 175% YoY, now covering over 4,290 pin codes and 1,000+ cities.

"The profitability of such moves beyond metro markets is the key monitorable," Taurani cautions.

In the Consumer Electronics vertical, bill values jumped 26% YoY, though AC sales were hit due to monsoon-related disruption. Fashion & Lifestyle also saw traction: AJIO’s average bill value and new customer revenue share rose 17% and 18% respectively. Emerging brands like GAP, Azorte, and Yousta grew 59% YoY, now operating over 170 stores.

Reliance Consumer Products Ltd (RCPL), which is being demerged from the retail business, posted revenue of ₹4,400 crore in the quarter, double that of a year ago. General trade continues to drive this growth, contributing 70% of RCPL sales.

While growth has held up, Reliance Retail will need to “cement its digital capabilities” to counter the growing influence of quick commerce in urban markets.