Reliance Consumer Products Limited (RCPL), the fast-growing FMCG unit of Mukesh Ambani-led Reliance Industries (RIL), headed by Isha Ambani, has achieved a major financial milestone in the country's FMCG sector. The company's FMCG business has become EBITDA positive (working profit) for the first time since its inception.
The company management has indicated that after undergoing initial investment and aggressive market expansion, the business will see further improvement in profitability and operating margins in the coming quarters. Let us also tell you what kind of report has come out. First let us try to understand what it means to be EBITDA positive?
What does it mean to be EBITDA positive?
In financial matters, EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) reflects the actual operating/working profits of any company. In a sector like FMCG, where one has to spend heavily on advertising, distribution and heavy discounting in the initial years to penetrate the market, becoming EBITDA positive so soon shows that the business model of the company is now standing on its feet. This achievement proves that Reliance Consumer's revenue has now exceeded its daily operating expenses.
Big achievement for the company
Reliance Industries' FMCG (fast moving consumer goods) business has become EBITDA-positive for the first time. This is an important achievement for the company as it is rapidly expanding its consumer brand business. The management expects that profits will improve further with the completion of investments in the supply chain and increase in sales. FMCG business comes under Reliance Consumer Products Limited (RCPL), a subsidiary of Reliance Industries.
RCPL executive director Ketan Modi told analysts that although the company's main focus at present is on gaining market share, the business has already achieved 'break-even' at the EBITDA (earnings before interest, tax, depreciation and amortization) level. Answering analyst questions on Friday after the announcement of Reliance's first quarter results, Modi said that as we expand our scope and the entire supply chain is ready, EBITDA will improve. Right now our focus is on increasing market share.
The target is Rs 1 lakh crore
RCPL, which owns brands like Campa Cola, reported a net loss of Rs 125 crore during the first reporting period—four months ending March 2026—after the demerger in December. Gross revenue more than doubled to Rs 8,600 crore in the June quarter, although the company did not disclose EBITDA or net profit for the period.
Modi said that achieving leadership in all categories remains our target, because we have announced that our long-term target is to make this business worth Rs 1,00,000 crore in the financial year 2030. We are enhancing our capabilities and working towards achieving leadership. RCPL is investing Rs 30,000 crore to create supply chain and manufacturing infrastructure, of which Rs 10,000 crore has already been invested.
Expansion of dark stores
Apart from this, Dinesh Taluja, Chief Financial Officer of Reliance Retail, said that the company will continue to expand its network of 'dark stores' in the next 9-12 months to increase its market penetration while adopting a disciplined approach in terms of investment. He said that this expansion will not require much capital expenditure as most of the dark stores will be built inside existing brick-and-mortar outlets (physical stores). Taluja said Reliance Retail will remain “disciplined” in its dark store expansion. He said that we are seeing which markets are right, where there is a lot of demand and which markets are ready. Where our expectations regarding profits are not met, we will withdraw from those markets.
More than 100 percent growth in order volume
Despite being a relatively late entrant into e-commerce, Reliance has recorded over 100 per cent growth in order volumes in the last three-four quarters. Taluja said the growing contribution of online channels will accelerate overall revenue growth, even as investments in e-commerce and quick commerce will continue to impact margins in the near term. As of last quarter, online accounted for more than 13% of grocery sales and 27% of clothing and footwear sales.
Taluja said that even though there is short-term pressure on margins due to investment in e-commerce and quick commerce business, it will double the total EBITDA of the retail business in three years. Reliance Retail reported a decline in EBITDA margin for the third consecutive quarter, due to higher contribution of e-commerce in revenues and increase in fixed costs due to infrastructure investments related to it.
Taluja said that in today's world, there is no need to open multiple stores everywhere to serve customers. We can have a few stores and then deliver the goods to customers at their homes. There will be an increase in revenue and as the scale increases, the benefit of operating leverage will be available. This should increase positive EBITDA. He said that while opening a physical store (brick-and-mortar store) takes time, online business can be expanded much faster.
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