RIL slips 3% after muted Q3FY2025 earnings, retail arm drags O2C's profitability
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Shares of Reliance Industries Limited slipped 3.33% to trade at ₹1,409.30 apiece in today's session after the company announced a muted Q3 earnings result. According to analysts, its consolidated EBITDA was flat on a quarter-to-quarter basis, hurt by a weaker performance of Reliance Retail (RRVL).
In the past month, the stock has declined by nearly 10% and has come down by 10.55% on a year-to-date basis.
The energy-to-telecom behemoth posted a 2.6% quarter-on-quarter (QoQ) rise in its consolidated net profit at ₹18,645 crore for Q3 FY26, compared to ₹18,165 crore in the preceding quarter. On a year-on-year (YoY) basis, consolidated Profit After Tax (PAT) grew by 1.6% to reach ₹22,290 crore.
The company's revenue from operations rose 4.1% QoQ to ₹269,496 crore, up from ₹258,898 crore in Q2 FY26.
Gross revenue for the quarter stood at ₹293,829 crore, marking a 10.0% growth YoY, primarily driven by robust momentum in digital services and the oil-to-chemicals (O2C) segment. Consolidated EBITDA for the quarter hit a record ₹50,932 crore, up 6.1% YoY.
As per a research note by Motilal Oswal Financial Services, RRVL’s revenue growth of 9% YoY was impacted by the festive season shifting to 2Q and the FMCG demerger, while operating EBITDA grew just 2% YoY, lower than analyst estimates due to accelerated investments in quick commerce, weaker traction in fashion and lifestyle, and the rollout of the new labour code.
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The report also stated that Reliance Jio delivered steady execution, posting nearly 3% QoQ growth in both revenue and EBITDA, with the timing and valuation of the Jio Platforms IPO remaining key monitorables. The O2C business saw EBITDA grow 15% YoY, supported by stronger product cracks, although E&P EBITDA declined on the back of lower KG-D6 gas output.
"Quarterly capex moderated to ₹338 billion, with spending spread across O2C, new energy, Jio and retail, while net debt edged down sequentially to ₹1.17 trillion. Reflecting slower retail growth and higher financing costs at RJio, FY26–28 EBITDA and PAT estimates have been trimmed by up to 3%, though consolidated EBITDA and PAT are still expected to grow at around 10% and nearly 7% CAGR over FY25–28," the report read.