Reliance Industries Q1 Earnings: Revenue Climbs 11.5%, Boosted by Telecom, Retail, and Oil & Gas Businesses

Reliance Industries Ltd (RIL) reported an 11.5 percent increase in revenue to Rs 2.58 lakh crore in the fiscal first quarter from a year ago, bolstered by contributions across segments.

Consolidated EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 2 percent from a year earlier to Rs 42,748 crore. The company’s net profit (pre minority) for the quarter ended June 30 dropped 4.5 percent to Rs 17,445 crore, primarily due to increased depreciation expenses.

RIL’s oil and gas business’s EBITDA surged by 30% due to higher production volume. Operating profits for Jio Platforms Ltd and Reliance Retail Ltd rose 11.6% and 10.5%, respectively.

The oil-to-chemicals (O2C) segment’s EBITDA declined 14.3 percent from a year earlier to Rs 13,093 crore due to lower transportation fuel cracks and downstream chemical margins. This downturn was partially mitigated by low feedstock costs and robust domestic demand. Sequentially, O2C EBITDA fell 22 percent due to a fall in fuel cracks amid subdued demand and increased supply, although it was cushioned by improved downstream chemical margins.

While energy market volatility continued to affect short-term earnings, the underlying business dynamics remained favourable. Factors such as geopolitics, weather conditions, operational outages, and new refining capacities also drove volatility.

Jio Platforms Ltd’s EBITDA increased to Rs 14,638 crore. Jio’s subscriber base rose to 489.7 million, with a net addition of 8 million users during the June quarter. The company also reported 130 million 5G users.

EBITDA of the oil and gas business rose to Rs 5,210 crore. The segment’s EBITDA margin stood at 84.3%. A 44 percent boost in gas production from the KG D6 field partly offset the impact of lower price realizations. The average production at KGD6 was reported at 28.7 MMSCMD of gas and approximately 21,640 barrels per day of condensate.

EBITDA for RIL’s retail business rose to ₹5,664 crore, with store area surpassing 80 million sq ft.

RIL’s capital expenditure for the quarter stood at Rs 28,785 crore, comfortably covered by a cash profit of Rs 33,757 crore. Net debt as of June 30 decreased to Rs 1.12 lakh crore, down from Rs 1.16 lakh crore as of March 31, 2024.