Whalesbook
Retail Segment Struggles Impact Overall Results
The sell-off was prompted by slower-than-anticipated growth in Reliance Retail Ventures Limited (RRVL). The retail arm's revenue grew 9% year-on-year, but operating EBITDA increased by only 2%, falling short of analyst expectations. This slowdown was attributed to accelerated investments in quick commerce, weaker traction in fashion and lifestyle segments, and the impact of rolling out new labor codes.
Other Segments Show Resilience
Meanwhile, other key segments demonstrated stronger performance. Reliance Jio reported steady execution, with nearly 3% quarter-on-quarter growth in both revenue and EBITDA. The oil-to-chemicals (O2C) business posted a notable 15% year-on-year EBITDA increase, bolstered by favorable product cracks. However, the exploration and production (E&P) segment experienced a decline in EBITDA due to reduced KG-D6 gas output.
Financials and Outlook
Consolidated EBITDA for the quarter reached a record ₹50,932 crore, up 6.1% year-on-year. Quarterly capital expenditure moderated to ₹338 billion, spread across O2C, new energy, Jio, and retail. Net debt edged down sequentially to ₹1.17 trillion. Reflecting slower retail growth and higher financing costs at RJio, EBITDA and PAT estimates for FY26–28 have been trimmed by up to 3%. Despite these adjustments, consolidated EBITDA and PAT are still expected to grow at around 10% and nearly 7% compound annual growth rate over FY25–28.