Reliance Industries (RIL) on Friday beat estimates on all the fronts in its earnings for the January-March quarter driven by a recovery in its oil-to-chemicals (O2C) business and strong performance of digital and retail arms.
Net profit during the quarter 2.4% year-on-year to Rs 19,407 crore, exceeding Bloomberg’s consensus estimate of Rs 18,471 crore. The company’s revenue from operations increased by 10% to Rs 2.64 lakh crore, also ahead of expectations. Total expenditure rose in tandem, climbing 10% to Rs 2.4 lakh crore for the quarter.
RIL said that after becoming the first domestic company to surpass Rs 10 lakh crore in annual revenue and Rs 20 lakh crore in market capitalisation last year, it has crossed the Rs 10 lakh crore mark in networth as well.
The board approved a dividend of Rs 5.50 per equity share for FY25. Earnings before interest, taxes, depreciation and amortization (Ebitda) grew 3.1% year-on-year to Rs 43,832 crore, reflecting strong performance in telecom and retail segments despite mixed results from the energy businesses. Commenting on the company’s performance, chairman and managing director, Mukesh Ambani said, “FY25 has been a challenging year for the global business environment, with weak macro-economic conditions and a shifting geo-political landscape. Our focus on operational discipline, customer-centric innovation and fulfilling India’s growth requirements has helped Reliance deliver a steady financial performance during the year”.
Segment-wise, the O2C business saw a mixed quarter. While revenue for the segment rose 15% to Rs 1.64 lakh crore due to higher volumes and better domestic product placement, Ebitda declined 10% to Rs 15,080 crore. The company cited weak transportation fuel cracks and lower polyester chain margins as primary drags, partially mitigated by increased throughput, optimised feedstock costs, and stronger margins in polypropylene (PP) and polyvinyl chloride (PVC). Total throughput for the quarter rose 2.5% to 20.3 million metric tonnes (mmt).
Despite the volatility, Ambani emphasised the segment’s resilience. “The oil to chemicals business posted a resilient performance despite considerable volatility in energy markets. Significant demand-supply imbalances in downstream chemicals markets have led to multi-year low margins,” he said. Reliance is actively pursuing cost and operational optimisation to shore up margins.
In the oil and gas exploration and production business, revenue dipped slightly by 0.4% year-on-year to Rs 6,440 crore in the March quarter, while Ebitda fell 9% to Rs 5,123 crore. The decline was attributed to lower price realisations for gas and condensate, despite higher production volumes.
Finance costs rose 7% year-on-year to Rs 6,155 crore during the quarter due to higher average liabilities, while tax expenses increased by 1% to Rs 6,669 crore. Capital expenditure for the quarter stood at Rs 36,041 crore, reflecting continued investment across core and new energy businesses.
On Friday, RIL shares closed marginally lower at Rs 1,301 on NSE.