Reliance’s quick commerce business has now started earning profits.Image Credit source: ai generated
Nowadays the habits of all of us have changed. Be it milk packets or snacks, instead of going to the shop, we prefer to pick up the phone and use apps that provide delivery within 10 minutes. But have you ever wondered how these companies earn money in the race to deliver goods so quickly? The truth is that reaching profit in the quick commerce market has been like chewing iron. But the claim made by Reliance Industries now has changed the equations of the market. Reliance has made it clear that its quick commerce and FMCG business has now started earning money. According to the Economic Times report, the company says that its quick commerce business is now earning profit on every order, which in business language is called ‘contribution margin positive’.
understand the mathematics of profit
Reliance started its quick commerce business in October 2024. In such a short time, the company has achieved what other companies have been struggling for years. Senior officials of the company said that their FMCG business, which has been started for three years, has now become profitable (EBITDA Positive).
Reliance Retail CFO Dinesh Taluja has explained the reason behind this. Actually, Reliance is the biggest player in grocery and grocery in India. Because of this, they buy most of the goods from FMCG companies. When you place such a big order in bulk, it is natural that you get the goods at cheaper rates. Reliance is getting the benefit of this ‘sourcing power’ in Quick Commerce, due to which their profits are increasing.
Real income from food items
Another big reason behind this success of Reliance is understanding the preferences of customers. Taluja said that the food and beverage (F&B) category has the highest margins. One out of every three orders coming on Reliance’s Quick Commerce is from this category.
Generally, wastage of food items in grocery stores is 30 to 35 percent, which reduces profits. But Reliance has curbed this wastage through its supply chain management. This is the reason why they are able to give good prices to the customers and are also earning huge profits. Also, the company is now delivering not only ration but also electronics and fashion items, due to which the scope of earning is increasing.
Where does Reliance stand compared to other players?
Reliance has about 3,000 outlets that are associated with Quick Commerce, out of which 800 are dark stores (where only delivery is done). The company says that they are using their already existing store network, which reduces their costs. Talking about the figures, in the quarter of December 2025, Reliance was receiving 16 lakh (1.6 million) orders every day. The number of orders has seen an increase of 53% quarter on quarter. The company aims to become India’s largest quick commerce player.
At present, the biggest players in this race, Blinkit and Swiggy, are still running in overall loss. Blinkit is making profits in some cities, but their expenses have increased due to expansion into new cities. Swiggy’s losses have also reduced, but they have not yet become completely profitable.