Reliance Q4 profit dips 13% as war-hit O2C drags, retail and Jio steady

Mumbai: Reliance Industries Ltd reported a 13% fall in profits in the January-March period due to pressure put by the US-Israel-Iran war on the company’s core oil-to-chemicals (O2C) segment, even as contributions from telecom and retail segments remained resilient.

The company’s oil refining business was suffering from rising crude oil prices due to the war and expensive shipping and insurance costs. Higher fuel cracks (the margins the company makes from refining crude oil) helped offset some of the impact of higher input costs.

Revenues from Reliance’s telecommunications and retail operations offset the decline in its core O2C business to deliver stable operating income at the consolidated level.

Mukesh Ambani, chairman and chief executive of Reliance Industries, said in a press release on Friday that the company has been facing geopolitical disruptions, volatile energy prices and changing global trade patterns throughout FY26.

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“These negativities have weighed on businesses around the world,” Ambani said. “India, like Reliance, has maintained its economic growth trajectory throughout all this. The breadth of our portfolio and strong domestic orientation have helped manage fluctuations in the external environment.”

India’s most valuable company reports consolidated profit ₹16,971 crore in Q4, slightly above consensus estimate ₹16,944 crore surveyed from six analysts Bloomberg. Consolidated revenue increased 13% YoY ₹2.99 trillion.

However, earnings before interest, tax, depreciation and amortization (EBITDA) decreased marginally. ₹48,588 crore.

Revenue from the O2C segment increased by 12% year-on-year, driven by higher fuel prices. ₹1.85 trillion. However, the segment’s EBITDA fell just under 4%. ₹14,520 crore.

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“The numbers are weaker than expected and the real disappointment has been the O2C segment,” said Harshraj Aggarwal, vice president-institutional equity research, Yes Securities. “Telecom and retail performance was more or less in line with expectations.”

The war in Iran is partly responsible for the poor performance of the O2C segment, Aggarwal said, adding that another possible reason could be the unavailability of distressed crude oil. Finally, he said that due to the war, Reliance diverted liquefied petroleum gas (LPG) to priority sectors instead of its chemicals business in the downstream sector, which further affected margins.

But there is a silver lining. Analysts at JP Morgan estimate that Reliance’s gross refining margins (GRM), the money the company makes from refining each barrel of oil, have risen to $40-50 due to war-related volatility, compared to the long-term average of $5-10, improving future earnings prospects.

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Rugged telecom and retail

Revenues from Reliance’s telecom and retail businesses remained strong. Jio, the country’s largest telecom company, added 9.1 million customers in the quarter, reaching 525.4 million subscribers. Reliance Retail added 181 stores to reach 20,160 stores.

Jio Platforms Ltd, the telecommunications and digital arm of the group, reported the following revenues: ₹38,259 crore in Q4, up 13% from last year. EBITDA increased by a healthy 18% ₹20,060 crore. EBITDA margins increased by 2.3 points to 52.4%

Average revenue per user (ARPU), a key metric in the telecom industry, increased by 4%. ₹214.

Ambani senior said the company is “moving steadily” towards the listing of Jio Platforms.

“Jio’s state-of-the-art connectivity and edge computing infrastructure make it the key gateway through which AI services reach Indian consumers, homes and businesses. This will continue Jio’s industry-leading growth in the years to come,” Reliance Jio Infocomm chairman Akash Ambani said in a press release.

Meanwhile, Reliance Retail’s revenue grew 11% YoY ₹87,344 crore, while EBITDA increased by 3% ₹6,921 crore. Net profit increased marginally ₹3,563 crore.

“The most significant change this year was structural. Hyper-local commerce orders increased more than four times compared to the previous year,” said Isha Ambani, Executive Director, Reliance Retail Ventures Limited. The company operates India’s largest hyper-local distribution network in grocery, electronics and fashion with over 3,100 stores in over 1,200 cities, he said.

For the full financial year, Reliance Industries reported a consolidated income statement: ₹10.8 trillion, an increase of almost a tenth. This year’s EBITDA was 13.4% higher ₹Consolidated profit increased by approximately 16% to 2.1 trillion. ₹80,775 crore.

Shares of the company closed 1.15% lower on the BSE on Friday. ₹1,327.65. Benchmark Sensex closed the session down 1.29%. The results were announced after Sunday time.