Reliance Industries is aiming for an initial public offering (IPO) of its retail arm by 2028 while concentrating on profitable expansion and debt reduction. The company plans to add roughly 2,000 stores annually on a net basis, alongside closing underperforming outlets, to strengthen its market valuation ahead of the IPO.
In addition to improving store profitability, Reliance Retail is targeting growth in the fast-expanding quick commerce segment, particularly by opening more dark stores in the country’s top seven cities. The company currently handles about one million quick commerce transactions daily, with 90% of orders delivered in under 30 minutes. Many Smart Point grocery stores in major cities are being converted into dark stores to support this initiative.
Reliance Retail has also begun repaying debt as part of balance sheet restructuring in preparation for the IPO. Non-current borrowings dropped sharply to ₹20,464 crore in FY25 from ₹53,546 crore in FY24. Inter-corporate deposits from the parent company fell to ₹5,655 crore from ₹40,164 crore, with the remainder comprising bank loans.
An executive familiar with the plans said expansion will be carefully measured to ensure store profitability and improved valuations. “The telecom business IPO is the priority next year, and the retail IPO will follow two years later,” the executive noted.
The company has completed its major network correction, which involved closing non-profitable stores over the past two fiscal years. Going forward, closures will be part of regular operations, with a net addition of about 2,000 stores annually. After a peak of 2,844 net new stores in FY23, additions declined to 796 in FY24 and 504 in FY25 due to closures. As of the September quarter, Reliance Retail operated 19,821 outlets nationwide, including 412 new stores opened in the quarter. Gross revenue for the retail business grew 18% year-on-year to ₹90,018 crore, while profit after tax rose 17% to ₹3,439 crore.
As part of IPO preparation, Reliance Industries recently spun off the fast-moving consumer goods (FMCG) segment of Reliance Retail into a direct subsidiary, effective December.
