Reliance Q1 Results: Profit Rises 39% On Other Income Jump; Jio ARPU Rises To Rs 208.8

As the day comes to an end here are the key takeaways from the Reliance Industries Q1 Results:

• Highest Ever Profit

• Ebitda Below Estimates

• Oil and Gas, O2C Revenue Fall

• Reliance Industries Debt Declines

• Reliance Jio Grew Due To Subscriber Addition And Tariff Hike

• Reliance Retail Saw Sharpest Sequential Decline In Five Quarters

The digital services arm delivered in-line results, with revenue rising 2% quarter-on-quarter to Rs 30,882 crore and Ebitda growing 5% to Rs 16,690 crore. Ebitda margin expanded to 54%. Net profit rose marginally to Rs 6,711 crore.

Subscriber base hit 49.8 crore, the highest net addition in five quarters. ARPU rose 1.3% to Rs 208.8, reflecting the lingering impact of the tariff hike taken four quarters ago, though ARPU momentum appears to be slowing.

Retail business faced its sharpest sequential decline in five quarters, with revenue falling 5% and Ebitda also weakening. Margins remained flat for the third consecutive quarter, indicating rising pressures on profitability despite scale.

In its press release on Friday, the company also added that the Ebitda of Rs 42,905 crore is the highest ever quarterly Ebitda. However, the Ebitda has fallen 2% quarter-on-quarter and is below estimates due to the weak performance in all segments apart from Jio.

Ebitda margin, however, improved slightly to 17.6% from 16.8% in the previous quarter.

The conglomerates outstanding debt for the quarter declined to Rs 3.38 lakh crore, from the earlier Rs 3.48 lakh crore in the quarter ended March. However, it has increased from the Rs 3.05 lakh crore in the same quarter last year.

Net debt marginally increased to Rs 1,17,581 crore from Rs 1,17,083 crore in the previous quarter, as capital investments continued.