Isha M. Ambani, Executive Director, Reliance Retail Ventures Ltd
Reliance Retail said its digital-commerce expansion in FY27 will be funded from existing profits as it scales dark stores, JioMart and its own online channels, with the company targeting improved margins and cash generation over the next two years through higher order density, better inventory turns and a richer own-brand mix.Digital commerce accounted for 13.4% of Grocery B2C revenue and 27.3% of Apparel and Footwear revenue in Q1 FY27, while JioMart serviced about 5,500 pin codes and connected more than 2,500 Digital and Fashion & Lifestyle stores to two-hour delivery.“Our continued investment in digital commerce underscores the transformative power of our digital platforms,” Isha M. Ambani, Executive Director, Reliance Retail Ventures Ltd, said in the company’s media release.Disciplined scale-up“FY27 is basically laying the foundation and scaling the business with discipline,” management said in the post-earnings conference call, describing the year as an investment phase rather than a push for growth at any cost.The retailer plans to increase dark-store coverage and improve availability, speed and reliability across online channels. But it said each market would be evaluated for a clear path to positive unit economics.“While we will grow quite quickly, we’ll also look at the quality of business, not just the volume,” the company said. Management will track customer quality, repeat rates, order frequency, basket size, own-brand mix, fulfilment cost, cancellations, contribution margin and working capital.“Wherever they don’t make sense, we’ll cut that down,” it said, referring to markets or investments that fail to meet internal operating targets.Margin and cash-flow targetReliance Retail said its online expansion would be “funded from existing profits”. It expects scale to drive higher-order density, better inventory turns, greater marketplace and advertising income, and a stronger own-brand mix. The benefits, it said, would “convert into value in terms of margins and cash generation over the next two years.”Digital commerce’s share of Grocery B2C revenue rose 160 basis points year-on-year, while its contribution to Apparel and Footwear revenue increased 490 basis points.Published on July 18, 2026
