Newsletter
Reliance posted a mixed quarter, with strong revenue growth but profits and margins under pressure.
Note: for the full financial year, Reliance delivered a record performance, with its highest-ever revenue, EBITDA, and profit.
By the numbers:
Reliance
- Revenue up 12.6% at ₹2.94 lakh crore vs ₹2.61 lakh crore YoY & up 10.9% vs ₹2.65 lakh crore QoQ
- Profit down 12.5% at ₹16,971 crore vs ₹19,407 crore YoY & down 9% vs ₹18,645 crore QoQ
- Margin 15% vs 16.8% YoY & vs 17.4% QoQ
Reliance Jio
- Revenue up 14.7% YoY
Retail
- Revenue up 11.8% YoY at ₹98,457 crore
O2C (oil-to-chemicals)
- Revenue up 12% at ₹1.85 lakh crore vs ₹1.65 lakh crore YoY & up vs ₹1.62 lakh crore QoQ
- EBITDA down 3.7% at ₹14,520 crore vs ₹15,080 crore YoY & down ~12% vs ₹16,507 crore QoQ
- Margin 7.9% vs 9.1% YoY & vs 10.2% QoQ
The analysis: this was a classic Reliance quarter with strong consumption strong & weak energy.
The biggest drag came from the O2C business, where refining margins softened globally. Even though revenues grew, profitability took a hit, pulling down overall margins.
At the same time, input costs spiked sharply as material costs jumped to ₹1.29 lakh crore, squeezing profitability across segments.
On the brighter side, Jio and Retail continued to deliver steady growth.
