Reliance Industries Limited (RIL), India’s largest private sector company, kicked off the financial year 2025-26 with an impressive performance in its first quarter (Q1) results, announced on July 18, 2025. Led by Chairman Mukesh Ambani, the conglomerate showcased robust growth across its diverse business segments, including retail, telecommunications, and oil-to-chemicals (O2C). The results have sparked significant interest among investors and market analysts, making it a trending topic. Here’s a breakdown of RIL’s Q1 performance and what it means for the company and its stakeholders.
Key Financial Highlights
For the quarter ending June 30, 2025, Reliance Industries reported a consolidated net profit of ₹26,994 crore, a remarkable 78% increase compared to ₹15,138 crore in the same quarter last year. This surge was driven by strong operational performance and a one-time gain of ₹8,924 crore from the sale of its stake in Asian Paints. Even without this exceptional gain, RIL’s profit grew by an impressive 25% year-on-year (YoY), surpassing market expectations.
The company’s revenue from operations rose by 5.3% to ₹2,48,660 crore, up from ₹2,36,217 crore in Q1 FY25. Additionally, RIL’s EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped by 35.7% to ₹58,024 crore, reflecting improved profitability. The EBITDA margin also saw a significant improvement, reaching 21.2%, up 460 basis points from 16.6% in the previous year’s Q1. These numbers highlight RIL’s ability to navigate a volatile global market while maintaining strong financial health.
Performance Across Business Segments
Reliance Retail: A Consumer Powerhouse
Reliance Retail, one of RIL’s key growth engines, delivered a stellar performance. The segment reported a revenue of ₹84,171 crore, an 11.3% increase from ₹75,615 crore in Q1 FY25. Profit after tax (PAT) for the retail arm surged by 28.3% to ₹3,271 crore, driven by rapid store expansion, a growing customer base of 358 million, and a focus on its own FMCG brands. JioMart, RIL’s e-commerce platform, saw a 175% YoY increase in daily orders, reflecting the success of its quick commerce strategy. Isha Ambani, Executive Director of Reliance Retail Ventures, emphasized the company’s commitment to operational excellence and innovative product offerings.
Jio Platforms: Leading the Digital Revolution
Jio Platforms, RIL’s telecommunications and digital services arm, continued to strengthen its market leadership. The segment reported a 25% YoY rise in net profit to ₹7,110 crore, with revenue climbing 19% to ₹41,054 crore. Jio added 9.9 million subscribers, pushing its 5G user base past 212 million. The average revenue per user (ARPU) improved to ₹208.70, driven by strong subscriber growth and increased data consumption. JioStar, the media arm, recorded ₹9,904 crore in revenue, boosted by a blockbuster IPL season and 1.04 billion downloads of the JioHotstar app on Android. Akash Ambani, Chairman of Reliance Jio Infocomm, highlighted Jio’s role in driving India’s digital transformation through affordable 5G and innovative services like JioGames Cloud.
Oil-to-Chemicals (O2C): Resilient Amid Challenges
The O2C segment, which includes refining and petrochemicals, saw a 10.8% YoY increase in EBITDA to ₹14,511 crore, supported by improved margins in domestic fuel retail and transportation fuel cracks. However, standalone net sales for this segment dropped by 10.44% to ₹1,16,341 crore due to lower crude oil prices and planned maintenance shutdowns. Despite these challenges, RIL’s ability to optimize its operations and capitalize on favorable market conditions ensured a solid contribution from O2C.
Oil and Gas: Steady but Impacted
The oil and gas exploration and production segment reported a revenue of ₹6,103 crore, down 1.2% YoY, primarily due to lower gas volumes from the KG-D6 block and weaker crude oil price realizations. However, improved gas prices at $9.97 per MMBTU helped offset some of these declines. RIL continues to focus on expanding exploration along India’s east coast to bolster this segment.
Strategic Moves and Future Outlook
Reliance Industries also announced plans to demerge its FMCG business under Reliance Retail to enhance growth and focus on building a strong portfolio of consumer brands. Mukesh Ambani reiterated the company’s ambitious goal of doubling its EBITDA every 4–5 years, driven by innovation, inclusive development, and energy transformation. The company’s capital expenditure for the quarter was ₹29,875 crore, reflecting ongoing investments in 5G infrastructure, retail expansion, and new energy initiatives.
RIL’s financial discipline was evident despite a 18.9% YoY increase in finance costs to ₹7,036 crore, largely due to the operationalization of 5G spectrum assets. The company’s ability to deliver strong results amid global economic volatility underscores its diversified portfolio and operational resilience.
Impact on Investors and Markets
Following the announcement, RIL’s share price showed resilience, closing at ₹1,476 on the National Stock Exchange on July 18, 2025. The stock has gained 20% year-to-date, outperforming Indian market benchmarks and adding $40 billion to RIL’s market value. The board also recommended a dividend of ₹9 per share, subject to shareholder approval, further boosting investor confidence.
Analysts are optimistic about RIL’s future, citing its strong performance in consumer businesses and strategic investments in digital and retail sectors. However, some noted that the O2C segment’s performance was softer than expected, though the one-time gain from the Asian Paints stake sale significantly bolstered the overall results.
Why It Matters
Reliance Industries’ Q1 FY26 results highlight its pivotal role in India’s economic landscape. With operations spanning energy, retail, telecommunications, and media, RIL continues to drive innovation and growth. The company’s focus on digital transformation, sustainable energy, and consumer-centric businesses positions it as a leader in India’s journey toward becoming a global economic powerhouse. For investors, employees, and consumers, RIL’s performance signals stability, ambition, and a commitment to delivering value.
As Reliance Industries continues to scale new heights, its Q1 results set a positive tone for FY26, reinforcing its reputation as a dynamic and forward-thinking conglomerate.
Last Updated on: Tuesday, July 22, 2025 7:21 pm by Rishi Akkaraju | Published by: Rishi Akkaraju on Saturday, July 19, 2025 3:35 pm | News Categories: Business
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