Reliance Industries Ltd (RIL), India's most valuable company by market capitalisation, reported a 25% fall in quarterly profit to Rs 23,196 crore for the first quarter of FY27, beating analysts' average estimate of Rs 18,550 crore, according to Business Today. The decline was primarily due to a one-off gain of Rs 8,924 crore from a stake sale in Asian Paints in the year-earlier quarter. Revenue rose 25% to Rs 3.1 lakh crore, lifted by strong performances at its oil-to-chemicals (O2C) and Jio digital services businesses. EBITDA climbed 10% to Rs 51,403 crore as expenses rose faster, up 27% to Rs 2.9 lakh crore.
O2C Division
The O2C division, which accounted for 33% of total operating profit, reported a 17% year-on-year rise in EBITDA to Rs 17,010 crore. Stronger transportation fuel and downstream margins, higher crude sourcing from Russia and Latin America, and lower-cost ethane feedstock drove the gain. However, higher crude, freight and insurance costs weighed on margins, as did losses from holding domestic fuel prices steady and the reintroduction of the special additional excise duty on diesel, petrol and aviation fuel.
Jio Digital Services
Jio posted a 16% rise in EBITDA to Rs 21,255 crore on strong revenue growth and a 150 basis point margin expansion. Average revenue per user (ARPU) rose 3% to Rs 216, helped by a better subscriber mix and seasonal gains, partly offset by broadband promotions. Jio, launched in 2016, had 533 million customers as of June 30 — the world's second-largest telecom operator by subscribers. Data traffic grew 27%, voice traffic 2%.
Retail and Other Segments
Retail EBITDA was broadly flat at Rs 6,309 crore, down 1% on higher digital commerce contribution and infrastructure costs, even as revenue grew 8%. Oil and gas EBITDA held steady at Rs 4,973 crore. EBITDA from smaller businesses, including media and consumer products, fell 28% to Rs 1,856 crore.
| Segment | Q1 EBITDA (Rs crore) | YoY Change |
|---|---|---|
| O2C | 17,010 | +17% |
| Jio | 21,255 | +16% |
| Retail | 6,309 | -1% |
| Oil & Gas | 4,973 | Flat |
| Smaller businesses | 1,856 | -28% |
| JioStar (entertainment) | 933 | +31% |
| Reliance Consumer Products | Not disclosed (revenue up 2% to Rs 8,600 crore) | — |
Financial Position and Capex
Reliance's cash balance of Rs 2.46 lakh crore comfortably covered net debt of Rs 1.22 lakh crore. As of June 30, the company had Rs 27,389 crore in non-convertible debentures, of which Rs 20,000 crore was backed by security over some of the company's movable assets. Capital expenditure totalled Rs 38,682 crore, funding in part its green energy build-out and consumer business expansion.
Management Outlook
Commenting on the results, Mukesh Ambani, chairman and managing director, said: "Reliance has made a steady start to FY27, with all businesses delivering strong operating performance despite continuing geopolitical tensions and volatile commodity markets. This makes me optimistic about the year ahead as we advance our new energy projects and the Jio IPO." The Jio IPO remains a key catalyst for the company, with preparations underway.
Sources:
