Reliance Industries Q4 Results: Margin Contracts Most In 10 Quarters

Reliance Industries Ltd.'s operating margin during the three months ended March contracted the most in 10 quarters, weighed down by its oil and gas business.

The oil-to-telecom conglomerate reported an operating margin of 16.8%, contracting 148 basis points from the preceding quarter, according to its notification to the exchanges on Friday. That was the biggest margin contraction since the second quarter of the financial year ending March 2023.

Revenue for the three months ended March missed analysts estimates. The company's consolidated bottom line rose 9% quarter-on-quarter to Rs 2.61 lakh crore. Analysts consensus forecast stood at Rs 3.02 lakh crore.

The oil-to-telecom conglomerate reported a profit of Rs 19,407 crore, an increase of 4.7% from the preceding quarter, according to its notification to the exchanges. The analysts had pegged the bottom line at Rs 18,471 crore.

Reliance Industries Q4 Results (Consolidated, QoQ)

• Revenue up 9% to Rs 2.61 lakh crore versus Rs 2.39 lakh crore. (Estimate: Rs 3.02 lakh crore)

• Ebitda up 0.1% to Rs 43,832 crore versus Rs 43,789 crore. (Estimate: Rs 43,365 crore)

• Margin contracted by 140 basis points to 16.8% versus 18.2% (Estimate: 14.3%).

• Profit up 4.7% to Rs 19,407 crore versus Rs 18,540 crore. (Estimate: Rs 18,471 crore).

Segment Margins Fall

The energy segment's Ebitda fell 8%, primarily due to weaker fuel cracks and pressure in the polyester chain deltas.

The oil-to-chemicals business declined 10% year-on-year, reflecting sustained margin weakness in a subdued demand environment. Annual margins saw a sharp decline, with fuel cracks down 36–41% and chemicals down 2–13%.

Reliance attributed this to a global demand slowdown coinciding with aggressive capacity additions from China.

Lower Production Adds

The oil and gas segment fell 8.6%, with KG D6 production down 10.8% from a year ago. The company noted continued weakness in production and pricing trends across the upstream and downstream energy value chain.

Outlook Remains Cautious

Reliance said its O2C business remains exposed to global energy market dynamics, and that tariff actions continue to pose challenges.

It expects global oil demand growth to slow to 0.7 million barrels per day, which could limit improvement in fuel demand and refining margins.

Crude oil prices are likely to remain range-bound as OPEC+ begins unwinding output cuts and US drilling activity gains pace.

Ahead of its quarterly results, shares of RIL closed 0.09% lower at Rs 1,300.40 apiece on the NSE, compared to a 0.86% fall in the benchmark Nifty 50. The stock has fallen by 10.93% in the last 12 months but risen 6.99% on year-to-date basis.