Reliance Industries (RIL) on Friday reported a mixed set of March quarter results, with revenue surpassing expectations but profitability coming under pressure amid weakness in its energy businesses. Consolidated revenue from operations rose to a record Rs 298,621 crore, up 12.9% year-on-year and marking the strongest growth in 13 quarters, compared with Bloomberg estimates of Rs 280,572 crore.
Net profit attributable to owners of the company stood at Rs 16,971 crore, marginally above estimates of Rs 16,943 crore but down 12.6% from a year earlier, making it the lowest in six quarters and the weakest year-on-year performance in 22 quarters.
Operating performance lagged estimates, reflecting margin pressure. Ebitda for the quarter came in at Rs 44,141 crore, below the estimated Rs 46,925 crore and broadly flat on a year-on-year basis. As a result, margins contracted, with higher depreciation and finance costs weighing on earnings. Higher crude-linked raw material costs, with cost of materials at Rs 128,985 crore, also weighed on margins.
Finance costs for the quarter rose 7% year-on-year to Rs 6,585 crore, while depreciation increased nearly 10% to Rs 14,808 crore, reflecting continued investments in telecom infrastructure, including 5G rollout, as well as expansion across retail and new energy businesses. The gap between revenue growth and operating profit underscores the impact of cost escalation and an adverse business mix during the quarter.
Geopolitical Friction
The oil-to-chemicals (O2C) segment remained the key drag on profitability. Segment revenue rose 12.4% year-on-year to Rs 184,944 crore in the quarter, but Ebitda declined 3.7% to Rs 14,520 crore, indicating margin compression. While revenues benefited from higher crude prices and improved domestic fuel sales, margins were affected by elevated feedstock costs, higher freight and insurance expenses, and policy-led interventions.
The company’s decision to hold retail fuel prices and the reintroduction of export duties limited margin capture. In addition, RIL diverted propane and butane to boost LPG output and prioritised gas supply from the KG-D6 basin to critical sectors, further impacting profitability.
Geopolitical factors amplified these pressures. The conflict in West Asia disrupted global supply chains and led to volatility in crude prices and product flows, increasing input costs and uncertainty. Higher premiums on physical crude, coupled with elevated logistics costs, constrained refining and petrochemical margins. The oil and gas segment also saw weakness, with revenue declining 8.9% year-on-year to Rs 5,867 crore and Ebitda falling 18.1% to Rs 4,195 crore during the quarter, further weighing on overall earnings.
Consumer Resilience
Consumer-facing businesses provided some support, though not enough to offset the drag from energy. Jio Platforms reported steady growth with revenue from operations rising 12.6% year-on-year to Rs 38,259 crore and Ebitda increasing 17.9% to Rs 20,060 crore. Reliance Retail also maintained momentum, with revenue from operations up 11.1% to Rs 87,344 crore and Ebitda rising 3.1% to Rs 6,921 crore, although margins remained under pressure due to continued investments. The relative resilience of these segments highlights the company’s ongoing shift towards consumer and digital businesses, even as energy remains a significant contributor to earnings volatility.
On the balance sheet front, capital expenditure during the quarter stood at Rs 40,560 crore, taking full-year capex to Rs 1.44 lakh crore, reflecting continued investments across telecom, retail and new energy. Net debt rose to Rs 1.25 lakh crore at the end of March, with net debt-to-Ebitda at 0.64 times, indicating a comfortable leverage position.
On a full-year basis, RIL’s performance remained robust. Revenue from operations rose 9.7% year-on-year to Rs 10,75,675 crore, while net profit attributable to owners increased 16% to Rs 80,775 crore, indicating sustained growth despite quarterly fluctuations. Commenting on the results, Chairman Mukesh Ambani said, “Through FY26 we faced geopolitical disruptions, volatile energy prices and shifting global trade patterns. These headwinds weighed on businesses across the world. India held its economic growth course through all this, as did Reliance. The breadth of our portfolio and strong domestic orientation helped navigate volatility in the external environment”.