Reliance Industries Q1 Results: Profit Up 39% On One-Time Gain; Margin Expands, But Misses Estimates

Reliance Industries reported a 39% quarter-on-quarter rise in consolidated net profit to Rs 26,994 crore for the June quarter, driven by a one-time gain from the sale of listed investments.

Net profit, which came in above street estimates of Rs 19,775 crore, included other income of Rs 8,924 crore from the sale of listed investments, including proceeds from Reliance's stake in Asian Paints.

Revenue, which came in in line with estimates, declined 7% sequentially to Rs 2.43 lakh crore from Rs 2.61 lakh crore. Revenue from other businesses fell 7% to Rs 18,470 crore from Rs 19,920 crore.

Reliance Industries Q1 Results (Consolidated, QoQ)

• Revenue down 7% to 2.43 lakh crore versus 2.61 lakh crore (Estimate: Rs 2.41 lakh crore)

• Ebitda down 2% to Rs 42,905 crore versus Rs 43,832 crore (Estimate: Rs 44,497 crore)

• Margin expanded 80 basis points to 17.6% versus 16.8% (Estimate: 18.4%)

• Profit up 39% to Rs 19,775 crore versus Rs 19,407 crore (Estimate: Rs 19,775 crore)

"During the quarter, energy markets encountered heightened uncertainty, with sharp fluctuations in crude prices," Chairman Mukesh Ambani said in a statement. "Natural decline in KGD6 gas production resulted in marginally lower Ebitda for Oil & Gas segment."

O2C Revenue Falls

Revenue from the oil-to-chemicals business declined 6% to Rs 1.55 lakh crore from Rs 1.65 lakh crore, mainly due to lower crude oil prices and reduced volumes caused by a planned maintenance shutdown. Segment revenues were partly supported by increased domestic placement of transportation fuels through Jio-bp. Ebitda for the segment fell due to the shutdown and likely inventory losses.

Oil and Gas Drops

Revenue from the oil and gas segment fell 5% quarter-on-quarter to Rs 6,103 crore from Rs 6,440 crore. On a year-on-year basis, revenue declined 1.2% due to lower KGD6 gas volumes from natural decline in production, lower realisations from coal bed methane (CBM) gas, and weaker crude price realisations.

This was partly offset by improved KGD6 gas prices, which averaged $9.97 per MMBTU in Q1 FY26 compared to $9.27 per MMBTU a year earlier. Average CBM gas prices were lower at $9.90 per MMBTU in the quarter. Average KGD6 production stood at 26.55 MMSCMD of gas and around 19,300 barrels per day of oil and condensate.

Retail Revenue Slips

Retail revenue declined 5% sequentially to Rs 84,172 crore from Rs 88,637 crore, marking the sharpest fall in five quarters. Ebitda for the segment was also lower, impacted by weaker sales. Retail Ebitda margin remained flat for the third straight quarter.

Digital Business Grows

Revenue from digital services rose 3% quarter-on-quarter to Rs 41,949 crore from Rs 40,861 crore. Growth was driven by continued subscriber additions and the full impact of a tariff hike taken four quarters ago. The company reported the highest subscriber additions in the last five quarters, although ARPU growth slowed as the impact of the tariff hike was fully priced in.

Capital Spending and Debt

Capital expenditure for the quarter ended June 30 stood at Rs 29,875 crore ($3.5 billion). Net debt rose slightly to Rs 1,17,581 crore from Rs 1,17,083 crore in the previous quarter.