Reliance Retail plans 2028 IPO with expansion, debt cut
- ByStartupStory | December 16, 2025
Reliance Retail, India’s largest retail chain and a subsidiary of Reliance Industries Ltd (RIL), is gearing up for an initial public offering (IPO) by 2028 as part of a strategic push to unlock shareholder value while sustaining profitable growth. The company is balancing aggressive network expansion with a sharp focus on debt reduction and operational efficiency to prepare for the listing, which would follow the planned 2026 IPO of telecom arm Reliance Jio.
Store expansion and profitability drive
Reliance Retail currently operates nearly 19,821 outlets across various formats, including supermarkets, fashion stores, electronics chains, and digital platforms. The company plans to add around 2,000 stores annually on a net basis, prioritising profitable locations that contribute positively to the bottom line. This measured approach marks a shift from earlier aggressive growth phases, with net additions dropping from 2,844 stores in FY23 to 504 in FY25 after pruning loss-making outlets.
In the September 2025 quarter, Reliance Retail reported gross revenue of ₹90,018 crore and a profit of ₹3,439 crore, underscoring its scale and resilience. The expansion includes converting smart-point grocery outlets into dark stores to bolster quick commerce capabilities, where it now handles about one million orders daily, with 90% delivered within 30 minutes. This hybrid model leverages partnerships with over 20 lakh kirana stores alongside modern retail and digital channels.
Debt reduction and restructuring
Ahead of the IPO, Reliance Retail has undertaken significant balance-sheet cleanup, slashing non-current borrowings from ₹53,546 crore in FY24 to ₹20,464 crore in FY25. The sharp drop stems largely from reduced inter-corporate deposits from the parent company (down from ₹40,164 crore to ₹5,655 crore), with the remainder comprising bank loans. This deleveraging strengthens financial health and investor appeal.
The company has also completed a major internal restructuring effective December 1, 2025, carving out its FMCG brands portfolio into a new subsidiary, New Reliance Consumer Products Ltd (New RCPL). This composite scheme involving Reliance Retail Ltd, Reliance Retail Ventures Ltd, and RCPL streamlines operations and positions consumer products for independent growth.
IPO timeline and market context
The 2028 timeline aligns with RIL’s playbook of listing high-growth verticals sequentially—Jio first in 2026, followed by retail. Analysts view the IPO as a potential blockbuster, given Reliance Retail’s market leadership in a sector projected to reach trillions in value over the next decade, driven by rising incomes, urbanisation, and digital adoption.
The focus on profitability, debt discipline, and omni-channel scale positions Reliance Retail uniquely against quick-commerce rivals like Blinkit, Zepto, and Swiggy Instamart. With investments in technology, logistics, and sustainability, the listing could attract global capital eager to participate in India’s organised retail transformation while unlocking value for RIL shareholders.
Follow Startup Story
Related Posts
