RIL Q4 profit falls 9% QoQ even as revenue rises; energy drag offsets Jio, retail growth

Reliance Industries Ltd reported a sequential decline in profit for the March quarter even as revenue rose, with weakness in its energy businesses offsetting continued strength in Jio and retail operations.

The company’s consolidated net profit fell 8.98% quarter-on-quarter to ₹16,971 crore, while revenue increased 10.8% to ₹2,98,621 crore. EBITDA declined 4.1% QoQ to ₹44,141 crore, with margins contracting to 14.78% from 17.08% in the previous quarter.

On a year-on-year basis, however, revenue rose 12.9% to ₹3,25,290 crore, while profit after tax stood at ₹20,589 crore, down 8.9%, reflecting pressure from the energy segment.

Energy drag offsets consumer strength

RIL’s performance during the quarter was shaped by a divergence between its consumer-facing and energy businesses.

The oil-to-chemicals (O2C) segment saw EBITDA decline 3.7% year-on-year to ₹14,520 crore, while the oil and gas segment reported a sharper 18.1% drop to ₹4,195 crore, weighed down by lower volumes and weaker prices.

The company said the energy business faced multiple headwinds, including rising crude premiums, elevated logistics costs and lower availability of advantaged crude.

By contrast, consumer businesses remained resilient. Digital services EBITDA rose 16% YoY, while retail posted a 3% increase, helping cushion the overall impact of energy weakness.

Jio continues to lead growth

Reliance Jio remained the strongest contributor to earnings growth in the quarter.

Jio Platforms reported EBITDA of ₹20,060 crore, up 17.9% year-on-year, driven by strong subscriber additions, improving ARPU and expansion in digital services.

The telecom arm’s subscriber base crossed 524 million, including 268 million 5G users, highlighting continued scale-up of its next-generation network.

Commenting on the performance, chairman and managing director Mukesh Ambani said, “Jio continues to transform India’s digital landscape… we are advancing steadily towards the listing of Jio Platforms. This will mark a defining milestone in its journey.”

He added that robust growth was driven by traction in mobility, home broadband and enterprise services.

Retail steady; consumption theme intact

Reliance Retail delivered steady growth during the quarter, with EBITDA rising 3.1% year-on-year to ₹6,921 crore, as the company continued to expand its store network and strengthen its omni-channel presence.

Ambani said, “Reliance Retail delivered steady growth through the year… India’s consumption story has many years of growth ahead of it, and our businesses are built to be at the centre of this opportunity.”

Macro headwinds weigh on performance

RIL flagged global macro pressures, particularly in the energy segment, as a key factor impacting performance.

Ambani said, “Through fiscal FY2025-26 we faced geopolitical disruptions, volatile energy prices and shifting global trade patterns.”

He also pointed to the impact of the ongoing West Asia conflict, noting that it has led to “unprecedented dislocation in global supply chains.”

The company added that higher finance costs and depreciation — partly due to the operationalisation of 5G spectrum assets — also weighed on profitability during the quarter.

Dividend announced

The board has recommended a dividend of ₹6 per equity share of face value ₹10 for FY26, subject to shareholder approval.

RIL said its diversified business model helped cushion global volatility, with consumer-facing segments continuing to drive growth even as energy businesses faced pressure.

The company also highlighted progress in its new energy business, with Ambani stating that “this business will emerge as a powerful growth engine for Reliance and a transformative contributor to India’s energy future.”

Shares of Reliance Industries ended 0.92% lower at ₹1,331 on the NSE on Friday. The stock is still up over 2% in the past year, outperforming the benchmark Nifty 50, which has declined over 2% during the same period.