Reliance Industries (RIL) on Friday posted a sharp rise in its net profit for the April-June quarter, driven by a one-time gain from the sale of its stake in Asian Paints and continued momentum in consumer-facing businesses. However, revenue from its core oil-to-chemicals segment edged lower due to maintenance-related disruptions.
Net profit jumped 78% year-on-year to Rs 26,994 crore, beating Bloomberg’s estimate of Rs 20,059 crore. The gain included Rs 8,924 crore from divesting its 3.7% stake in Asian Paints, which Reliance fully exited in June. Even after excluding the investment gain, recurring profit rose by 19.4% from a year earlier. Because of the stake sale in Asian Paints, other income saw a a huge jump of 28% year-on-year at Rs 15,119 crore.
Revenue from operations rose 5.3% to Rs 2.49 lakh crore, led by strong performance in retail and digital services. Consolidated Ebitda increased 10% to Rs 42,905 crore, slightly below estimates of Rs 44,474 crore.
Chairman and managing director Mukesh Ambani said, “Reliance has begun FY26 with a robust, all-round operational and financial performance. Consolidated Ebitda for Q1 FY26 improved strongly from a year-ago period, despite significant volatility in global macros”. He added that, Reliance is committed to contribute to India’s growth through inclusive growth, technological innovation and leading energy transformation. “The performance of our businesses and growth initiatives gives me confidence that Reliance will continue its stellar track record of doubling every 4-5 years,” Ambani said.
Oil-to-Chemicals business sees minor dip amid maintenance
The oil-to-chemicals business, which remains the largest contributor to group revenue, reported a 1.3% decline in turnover to Rs 1.55 lakh crore. This was due to lower crude prices and a partial shutdown at the 663,000 barrels-a-day Jamnagar refinery for maintenance in April. However, segment Ebitda rose 11% to Rs 14,511 crore, helped by stronger domestic fuel retail margins and improved cracks in transportation fuels. Lower volumes and weaker polyester chain margins partly offset these gains. The fuel retail network, operated by Reliance BP Mobility, expanded to 1,991 outlets, outpacing industry growth.
Oil and gas revenues declined 1.2% to Rs 6,103 crore, while segment Ebitda fell 4.1% to Rs 4,996 crore. The drop was attributed to lower production from the KG-D6 block, softer coal bed methane prices, and maintenance-related costs.
The outlook for Reliance’s fuels export business could be impacted by the European Union’s move to tighten sanctions on Russia, including measures aimed at restricting imports of refined fuels made from Russian crude. Reliance is among the country’s top buyers of Russian oil and a key exporter of diesel to Europe, according to data from analytics firm Kpler.
Retail and digital services continue strong growth
Retail and digital services continued to post strong growth. The wireless business saw steady subscriber additions, supporting plans for a future listing.
Capital expenditure during the quarter was Rs 29,887 crore, with investments focused on scaling up the company’s new energy platform. Reliance aims to make this ecosystem fully operational over the next four to six quarters. Net debt stood at Rs 1.18 lakh crore as of June 30, up marginally from the end of March. The company’s depreciation went up by 1.8% Y-o-Y to Rs 13,842 crore and finance costs increased by 19% Y-o-Y to Rs 7,036 crore, largely due to operationalisation of 5G spectrum assets.
On Friday, RIL shares closed down 0.02% at Rs 1,476.85 on the BSE. The results were announced after market hours.
