Mukesh Ambani-led Reliance Industries (RIL) is set to announce its Q1FY27 results today on July 17. Analysts are expecting Reliance Industries to post healthy earnings growth during the quarter despite volatility in global oil markets triggered by the West Asia conflict.
Here are 5 key factors to watch out for on Reliance Industries Q1 result.
1. Reliance Industries Q1 preview: Profit may slip, revenue and EBITDA expected to rise
Reliance Industries is expected to post revenue of Rs 2.99 lakh crore for the April-June quarter, up 17.3% from a year ago and 1.6% higher than the previous quarter. However, net profit is likely to fall 10.1% year-on-year(YoY) and 3.6% sequentially to Rs 19,851.5 crore, said Yes Securities.
Kotak Institutional Equities estimates the company’s consolidated EBITDA at Rs 46,500 crore, up 8.4% year-on-year and 5.4% sequentially. The growth is likely to be driven by its Oil-to-Chemicals (O2C) business, while the oil and gas segment may see a decline in earnings on a yearly basis despite sequential improvement.
2. RIL Q1 preview: O2C business likely to drive EBITDA growth
Kotak “We estimate O2C EBITDA to rise approximately 12% YoY and QoQ, driven by likely stronger earnings for the SEZ refinery (no impact of the windfall export tax), US ethane-based petchem and weaker rupee,” Kotak noted.
3. RIL Q1 expectations: West Asia conflict to weigh on oil and gas business
Q1FY27 was challenging for the oil and gas industry due to supply disruptions and sharp swings in crude oil prices following the West Asia conflict. However, Reliance’s diversified business model is expected to cushion the impact.
“We expect oil & gas segment EBITDA to decline 11.3% YoY and up 5.7% QoQ on a low base,” Kotak said.
4. Reliance Retail business likely to maintain double-digit growth
Reliance’s retail business is expected to continue delivering double-digit revenue growth.
“For RRL, we assume revenue growth of approximately 12% YoY, from 10.8% YoY reported in 4Q and EBITDA margins to be flat at 6.8% QoQ (down 38 bps YoY). We expect retail business EBITDA to rise approximately 5.6% YoY (down 1.3% QoQ).”
5. Reliance Jio: Higher ARPU, subscriber growth expected
Reliance Jio is expected to remain a key growth driver during the quarter. The brokerage expects the telecom business to benefit from higher average revenue per user (ARPU) and steady subscriber additions. Yes Securities expects “Telecom ARPU to increase to Rs 215.4 whereas the subscribers could stand at 531.6 million.”