Mumbai: Reliance Industries Ltd. (RIL) reported a strong set of June quarter results, with its oil-to-chemicals (O2C) and oil & gas businesses driving earnings growth and offsetting weakness in the retail segment. The conglomerate’s consolidated net profit rose 23 per cent quarter-on-quarter to ₹20,946 crore, surpassing market expectations.
The company’s revenue increased 5 per cent to ₹3.09 lakh crore from ₹2.94 lakh crore in the previous quarter, while EBITDA climbed 8 per cent to ₹47,517 crore. EBITDA margin also improved to 15.4 per cent from 15 per cent.
O2C business leads earnings growth
Reliance’s O2C segment emerged as the biggest contributor to quarterly growth. EBITDA from the business rose 17 per cent to ₹17,010 crore, supported by stronger petrochemical spreads and improved gross refining margins at its SEZ refinery.
Segment revenue increased 9 per cent to ₹2.02 lakh crore, while margins expanded to 8.43 per cent from 7.85 per cent, reflecting healthy refining and petrochemical operations.
Oil and gas business exceeds expectations
The oil and gas exploration business also delivered robust performance, with EBITDA rising 19 per cent to ₹4,973 crore. Revenue from the segment grew 7 per cent to ₹6,298 crore, aided by stable production levels and lower operating costs.
Retail business records weakest quarterly performance
Reliance Retail remained the only weak spot during the quarter. Segment EBITDA declined 9 per cent to ₹6,309 crore, marking its sharpest sequential fall in five years. Revenue from the retail business also slipped 8 per cent due to softer consumer demand and continued investments in digital operations.
The retail arm’s net profit fell to ₹3,271 crore from ₹3,563 crore in the previous quarter.
Jio adds subscribers as ARPU improves
Reliance Jio delivered a steady performance, with net profit rising to ₹7,764 crore from ₹7,317 crore. Its subscriber base expanded to 533.3 million, while average revenue per user (ARPU) improved marginally to ₹215.6.
The company also reported a 5 per cent rise in data traffic to 69.4 billion GB during the quarter.
Strong balance sheet remains a positive
Reliance’s financial position strengthened further, with net debt reducing to ₹1.23 lakh crore from ₹1.25 lakh crore in the March quarter. Investors will now focus on management’s outlook for refining margins, retail demand, Jio’s growth, capital expenditure and the company’s new energy initiatives
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