A STUDY ON PROFITABILITY ANALYSIS OF RETAIL STORE USING RATIO ANALYSIS

  • Unique Paper ID: 199276
  • Volume: 12
  • Issue: 11
  • PageNo: 12039-12048
  • Abstract:
  • This article presents a comprehensive profitability analysis of Reliance Retail Limited, the largest organized retailer in India and a wholly-owned subsidiary of Reliance Industries Limited. Using financial ratio analysis as the primary methodology, the study evaluates five key profitability metrics — Gross Profit Ratio, Net Profit Ratio, Operating Profit Ratio, Return on Assets (ROA), and Return on Equity (ROE) — across three financial years (FY 2023–FY 2025). The research also integrates primary survey data collected from 57 respondents to examine customer perception, shopping behaviour, and brand engagement. Findings reveal that while Reliance Retail maintains a strong customer base and high brand awareness, its profitability indicators show a consistent declining trend, driven by rising operational costs and expanding asset base. The study concludes with strategic recommendations for cost optimization, digital transformation, and sustained shareholder value creation.

Copyright & License

Copyright © 2026 Authors retain the copyright of this article. This article is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

BibTeX

@article{199276,
        author = {Sachita N and Ms.Bhagyalakshmi J},
        title = {A STUDY ON PROFITABILITY ANALYSIS OF RETAIL STORE USING RATIO ANALYSIS},
        journal = {International Journal of Innovative Research in Technology},
        year = {2026},
        volume = {12},
        number = {11},
        pages = {12039-12048},
        issn = {2349-6002},
        url = {https://ijirt.org/article?manuscript=199276},
        abstract = {This article presents a comprehensive profitability analysis of Reliance Retail Limited, the largest organized retailer in India and a wholly-owned subsidiary of Reliance Industries Limited. Using financial ratio analysis as the primary methodology, the study evaluates five key profitability metrics — Gross Profit Ratio, Net Profit Ratio, Operating Profit Ratio, Return on Assets (ROA), and Return on Equity (ROE) — across three financial years (FY 2023–FY 2025). The research also integrates primary survey data collected from 57 respondents to examine customer perception, shopping behaviour, and brand engagement. Findings reveal that while Reliance Retail maintains a strong customer base and high brand awareness, its profitability indicators show a consistent declining trend, driven by rising operational costs and expanding asset base. The study concludes with strategic recommendations for cost optimization, digital transformation, and sustained shareholder value creation.},
        keywords = {},
        month = {April},
        }

Cite This Article

N, S., & J, M. (2026). A STUDY ON PROFITABILITY ANALYSIS OF RETAIL STORE USING RATIO ANALYSIS. International Journal of Innovative Research in Technology (IJIRT), 12(11), 12039–12048.

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