Whalesbook
Reliance Industries reported a marginal 1.66% year-on-year profit increase to ₹22,167 crore for the third quarter of fiscal year 2026. Consolidated revenue, however, saw a healthier 10% jump to ₹2.94 lakh crore, signaling growth across its diverse business verticals despite challenges in specific segments.
Mixed Quarter for Reliance
The conglomerate’s financial performance reflects a dynamic operational environment. While overall revenue expanded, the net profit growth remained subdued, primarily due to slower gains in its retail division and a dip in the oil and gas exploration segment.
O2C Margins Boost Profitability
The Oil to Chemical (O2C) segment emerged as a key performer, with revenue rising 8.4% year-on-year to ₹1.62 lakh crore. EBITDA in this segment climbed a robust 14.6% to ₹16,507 crore, driven by strong refining margins. Singapore gasoil cracks widened significantly, amplified by disruptions in Russian fuel supplies and sanctions impacting global markets.
Oil & Gas Segment Faces Headwinds
In contrast, Reliance’s oil and gas exploration business reported a revenue decline of 8.4% to ₹5,833 crore. This was attributed to lower volumes and reduced price realizations for its KG-D6 gas and condensate. Average prices for KG-D6 gas and CBM gas saw a slight decrease compared to the previous year.
Jio Platforms Sees ARPU Rise
Jio Platforms, the group's telecommunications and digital services arm, posted an 11.3% year-on-year increase in net profit to ₹7,629 crore. Revenue from operations grew 12.7% to ₹37,262 crore, supported by subscriber growth and a 5.1% rise in Average Revenue Per User (ARPU) to ₹213.7. The company provided no fresh update on a potential Jio IPO.
Retail Growth Moderates
Reliance Retail Ventures experienced an 8.1% year-on-year revenue increase, reaching ₹97,605 crore, boosted by festive and wedding season demand. However, EBITDA growth was more modest at 1.3%, indicating margin pressures influenced by factors such as the consumer products division demerger and GST rationalization.
Future Focus on AI and New Energy
Chairman and Managing Director Mukesh D. Ambani expressed confidence in Reliance entering a "new phase of value creation" with initiatives in Artificial Intelligence (AI) and New Energy. He stated that the company aims to play a pioneering role in these transformative technologies, delivering sustainable solutions globally.