Reliance Industries' Q4 Profit Rises 2%, Chinese Supply Hurt O2C Margins

Mukesh Ambani-led Reliance Industries reported a 2.41% year-on-year (YoY) increase in consolidated net profit for the March quarter of FY25, at Rs 19,407 crore, compared to Rs 18,951 crore in the same period last year.

The company’s revenue from operations for Q4FY25 rose nearly 10% YoY to Rs 2,64,573 crore, up from Rs 2,40,715 crore in Q4FY24.

Earnings before interest, taxes, depreciation and amortisation (EBITDA) for the quarter stood at Rs 48,737 crore, marking a 3.6% YoY increase from Rs 47,050 crore. However, the EBITDA margin declined to 16.9%, down 90 basis points from 17.8% in the year-ago quarter.

In an investor presentation, the company noted that margins in the oil-to-chemicals (O2C) business faced "significant pressure" due to new supplies from China amid a weak demand environment.

Reliance’s O2C segment posted a 15.4% YoY rise in Q4FY25 revenue to Rs 1,64,613 crore, driven by higher volumes and improved domestic placement. However, EBITDA fell 10% to Rs 15,080 crore due to weaker transportation fuel margins and lower polyester chain profitability.

“Transportation fuel cracks remained weak due to persistent geopolitical and trade disturbances, new refinery additions, lower demand from China, and higher inventory levels in Singapore,” the company said.

The company noted that transportation fuel cracks saw a significant decline in FY25 due to a combination of oversupply and softening demand. Singapore Gasoline 92 RON cracks averaged $6.9 per barrel, down $4.6 YoY, primarily due to increased supply from new refineries in Africa, Asia Pacific, and the Middle East. This was compounded by slower demand growth in China, driven by the rise of electric vehicles, and high inventory levels in Singapore, as suppliers avoided the Red Sea, which remains under threat due to attacks by Yemen’s Houthis.

Reliance’s Oil & Gas segment saw a marginal 0.4% decline in revenue to Rs 6,440 crore in Q4FY25, impacted by lower gas production and reduced oil offtake from the KGD6 field, despite higher gas price realisation and increased coal-bed methane (CBM) output.

Reliance BP Mobility Ltd (Jio-bp) also expanded its retail network to 1,916 fuel outlets in Q4FY25, significantly outperforming the industry in sales growth across key fuel categories.

First Indian Company to Cross Rs 10 Lakh Crore Net Worth

Reliance Industries closed FY25 by becoming the first Indian company to cross a net worth of Rs 10 lakh crore. The conglomerate reported record consolidated revenue of Rs 10,71,174 crore for the year, a 7.1% increase driven by its retail and telecom businesses. Annual consolidated EBITDA rose 2.9% YoY to Rs 1,83,422 crore, supported by strong contributions from consumer-facing verticals. Net profit, including share of profit/loss from associates and JVs, also grew 2.9% to Rs 81,309 crore. Capital expenditure for the year stood at Rs 1,31,107 crore, while net debt inched up slightly to Rs 1,17,083 crore.

“FY25 has been a challenging year for the global business environment, with weak macroeconomic conditions and a shifting geopolitical landscape," said Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries.

RIL’s board recommended a dividend of Rs 5.50 per equity share for FY25. In addition to the dividend, the board approved raising Rs 25,000 crore through bonds in one or more tranches.

Jio and Retail Segments Drive Growth

Reliance’s consumer businesses continued to perform strongly in Q4FY25. Jio Platforms posted an 18.5% YoY rise in EBITDA to Rs 17,016 crore and a 25.7% increase in net profit to Rs 7,022 crore.

The telecom giant added 6.1 million subscribers during the quarter, bringing its total user base to 488.2 million, including 191 million True5G users. Its ARPU rose to Rs 206.2, supported by a better subscriber mix and tariff hikes, while average data usage per user surged to 33.6 GB per month.

Meanwhile, Isha Ambani-led Reliance Retail reported a 15.7% YoY increase in revenue to Rs 88,620 crore and a 14.3% rise in EBITDA to Rs 6,711 crore. The business added 1,089 new stores, taking the total to 19,340 outlets and expanding operational area to over 77 million sq. ft. Its registered customer base grew to 349 million, with transaction volumes up 16.1% YoY.