Reliance Industries, led billionaire Mukesh Ambani, has reported impressive financial results for the quarter ended 30th September. The company’s net profit saw a significant jump of 27% to ₹17,394 crore, while revenues rose 1% to ₹2.32 lakh crore. This outstanding performance surpassed market expectations across all three business segments.
The star performer of the quarter was Reliance Retail, which witnessed a sharp increase in revenues and income. The retail business reported a growth of 18.8% in revenues to ₹77,148 crore, with an operating margin of 8.4%. The food and grocery segment of Reliance Retail saw a remarkable surge of 33% in revenues. The quarterly EBITDA of the retail business jumped 32.2% to ₹5,820 crore.
Reliance Jio, another subsidiary of Reliance Industries, experienced a growth in revenues of 10.6% to ₹31,537 crore. This growth can be attributed to a 7.5% increase in the subscriber base and higher average revenue per user. The EBITDA for Jio also saw a rise of 12.6% to ₹13,528 crore.
The O2C segment, which had been struggling in previous quarters, showed signs of recovery in this period. The segment’s profitability was driven better gas price realization and a remarkable 66% growth in KGD6 gas volumes. Despite volatility in crude oil prices, the O2C business performed well. RIL’s operating income witnessed a significant jump of 30.2% to ₹44,867 crore.
Mukesh Ambani, Chairman and Managing Director of RIL, expressed his satisfaction with the company’s overall performance. He credited strong contributions from all business segments for delivering robust growth. Reliance Retail continued to expand both offline and online, while the O2C segment demonstrated resilience despite market volatility. Ambani also highlighted the growth in the oil and gas business, emphasizing its value in fueling India’s energy transition.
Although Reliance Industries’ shares have declined 14% this year due to underperformance in the O2C segment, the company’s consumer businesses have been instrumental in driving revenues. In the last fiscal year, the company’s consolidated revenues stood at ₹9,74,864 crore, with the consumer segment contributing nearly half of the total revenues. However, the O2C segment has been consistently reporting weak numbers.
In the previous quarter, Reliance Industries reported consolidated revenue of ₹2.31 lakh crore, representing a 4.7% decline compared to the same period last year. This decline can be attributed to the underperformance of the O2C business. However, the strong growth in the consumer business helped mitigate this decline to a large extent. The company’s EBITDA for the quarter stood at ₹41,982 crore, indicating a 1.8% increase compared to the previous quarter and a 5.1% increase compared to the same period last year.