India’s Largest Retailer Prepares for IPO: Mukesh Ambani’s Big Plan

New Delhi: Reliance Industries, India’s second-largest industrial conglomerate, has begun preparations to take its retail arm, Reliance Retail, public by 2028. The company is also expected to launch the Reliance Jio IPO next year, marking two major listings in the next three years.

Focus on Profitable Expansion
Reliance Retail is concentrating on profit-driven growth ahead of its IPO. The company plans to open approximately 2,000 new stores annually while simultaneously reducing its debt to enhance valuation. A major priority is increasing its presence in the fast-growing quick commerce segment, particularly by expanding ‘dark stores’ in major cities.

Debt Reduction Efforts
According to the company’s annual report, Reliance Retail has significantly reduced its non-current borrowings, which fell to ₹20,464 crore in FY25 from ₹53,546 crore in FY24. Related-party loans were cut sharply to ₹5,655 crore from ₹40,164 crore. The remaining debt is primarily from banks.

Streamlining Loss-Making Outlets
The company has also rationalized its store network, closing loss-making outlets over the past two fiscal years. While store closures will continue as part of routine operations, net addition of 2,000 profitable stores per year is planned. This ensures the retail network remains profitable, supporting a higher company valuation ahead of the IPO.

Revenue and Profit Growth
As of the September quarter, Reliance Retail operated 19,821 outlets nationwide, adding 412 stores in the quarter. Total revenue increased 18% year-on-year to ₹90,018 crore, while net profit rose 17% to ₹3,439 crore.

Quick Commerce Push
Reliance Retail is increasingly focusing on the quick commerce segment, currently fulfilling 1 million orders daily, with 90% delivered within 30 minutes. To support this, the company is converting its Smart Point grocery stores into dark stores in major cities.

IPO Preparations
As part of IPO preparations, Reliance Group has restructured its FMCG business, making it a subsidiary of parent company Reliance Industries, ensuring cleaner financials and stronger valuation for investors.

Reliance Retail’s strategic expansion, debt rationalization, and quick commerce initiatives reflect Mukesh Ambani’s aim to maximize valuation and investor appeal ahead of one of India’s largest retail IPOs.