e-commerce
Reliance Retail Q2 net profit climbs 1.3 per cent to Rs 2,836 crore
Mumbai: Reliance Retail Ventures Ltd has reported a modest increase in net profit for the second quarter of FY25, rising 1.3 per cent year-on-year to Rs 2,836 crore. However, the company faced a significant revenue decline of 3.5 per cent, with operating revenue falling to Rs 66,502 crore compared to Rs 68,937 crore in the same period last year.
The results reflect ongoing challenges in the retail sector, particularly due to subdued consumer demand in the fashion and lifestyle segments. Despite these hurdles, Reliance Retail’s EBITDA rose slightly to Rs 5,850 crore from Rs 5,830 crore in Q2 of the previous year, with margins improving by 30 basis points.
In a strategic move to bolster its market presence, Reliance Retail expanded aggressively by adding 464 new stores during the quarter, bringing its total to 18,946 across an operational area of 79.4 million square feet. Reliance Retail executive director, Isha Ambani emphasised the company’s commitment to innovation and customer engagement: “Reliance Retail continues to make investments in technology and infrastructure to build a strong foundation for future growth and maintain market leadership.”
During the quarter, Reliance Retail strengthened its portfolio by forging exclusive partnerships with Delta Galil to expand in lingerie and activewear, while launching ASOS in India. AJIO expanded its product catalogue by over 25 percent year-over-year, adding 1.8 million customers and introducing brands like H&M and Timberland. The youth-focused Yousta format surpassed 50 stores within a year, and Ajio Luxe saw a 28 percent increase in options, with its brand count exceeding 725.
JioMart’s growth extended across categories, with non-grocery segments, especially consumer electronics, driving a twofold increase in average order value. The jewellery segment launched nine new collections, contributing to higher average bill values, while the grocery business maintained steady growth, led by Smart Bazaar and Smart stores. The company also scaled up quick commerce through its store network, expanded the services business to 150 cities, and launched its first Armani Café as part of the premium brands initiative.
The merchant base for the company’s private label doubled, and the seller base grew by 46 percent, further expanding the product catalogue.
Foot traffic across all store formats surged by 14.2 per cent year-on-year, reaching over 297 million visits. The digital commerce segment also performed well, contributing 17 per cent of total revenue as Reliance Retail adapts to evolving consumer preferences.
Chairman Mukesh D. Ambani remarked on the company’s strategic direction: “The unique omni-channel retail model enables the business to service a wide range of requirements of a vast, heterogenous customer base.”
e-commerce
Flipkart rolls out 105 per cent bonus for 20,000 employees
Strong FY25 performance drives payouts even as layoffs and shifts unfold.
MUMBAI: In a year where belts were tightened and rewards loosened, Flipkart seems to be playing both offence and defence trimming roles on one hand while handing out a generous 105 per cent bonus on the other. The Walmart owned e commerce major has rolled out a 105 per cent bonus payout for 2025, covering nearly 20,000 employees, signalling a year of steady operational momentum even as the company navigates restructuring pressures. The payout, communicated internally by chief human resources officer Seema Nair, is tied to performance across key metrics including growth, operational efficiency, financial outcomes and people indicators, a combination that suggests the company is inching closer to its long stated goal of sustainable profitability.
Employees at SD level and below are set to receive their bonuses in March, while payouts for senior leadership, including vice presidents and senior vice presidents, will follow after the close of the performance cycle. The elevated 105 per cent multiplier stands out in a sector where cautious payouts have increasingly become the norm, pointing to what appears to be a relatively strong internal scorecard for FY25.
Yet, the announcement arrives with a noticeable contrast. Earlier this year, Flipkart reduced its workforce by around 300 roles as part of its annual performance review process. While officially framed as performance driven, the juxtaposition of layoffs alongside above target bonuses reflects a more nuanced balancing act, one that prioritises cost discipline while continuing to reward and retain high performing talent.
This dual approach is becoming increasingly common across the technology and e commerce landscape, where companies are navigating an uneven hiring environment while under pressure to deliver profitability. Rewarding top contributors, even amid selective workforce reductions, allows firms to maintain morale and retain critical talent without losing sight of financial prudence.
At the same time, Flipkart is also undergoing leadership shifts that hint at a broader strategic recalibration. Nishant Verman has been appointed senior vice president for corporate development and partnerships, while group chief financial officer Sriram Venkataraman is set to step down. Ravi Iyer will take on expanded responsibilities within the finance function, marking a reshuffle at the top as the company gears up for its next phase.
These changes come amid reports that Flipkart is planning to shift its holding structure back to India, a move widely interpreted as groundwork for a potential public listing. While timelines remain fluid, the combination of stronger financial discipline, leadership restructuring and employee incentivisation suggests a company preparing itself for greater scrutiny and scale.
For employees, the 105 per cent payout offers a welcome boost in what has otherwise been a period of adjustment. For Flipkart, it is a signal that even as it cuts where necessary, it is willing to spend where it counts. In the high stakes game of growth versus profitability, the company appears to be hedging its bets carefully, rewarding performance while reshaping itself for what could be its most defining chapter yet.
