New Delhi, May 30 -- Nearly the entire incremental profit growth at Reliance Retail in the last fiscal year stemmed from the conversion of an interest-bearing loan from its parent to a zero-coupon instrument that allows it to buy shares in the company, a Mint review of their financials showed. The conversion reduced the finance costs of the operating retail company, lifting its profit.

Reliance Retail Ltd (RRL) reported a profit of Rs.13,476 crore in FY26, which was Rs.3,503 crore more than the previous year. Meanwhile, the company's finance costs, or the interest it paid, declined by nearly the same amount, from Rs.4725 crore in FY25 to just Rs.1,510 crore.

Reliance Retail Ventures Ltd (RRVL), the holding company of RRL, converted Rs.4...