This marks company’s second consecutive quarter of profit decline
MUMBAI: Reliance Industries Ltd (RIL), the largest corporate entity in the country, reported a 5.5 per cent fall in its consolidated profit to Rs 15,138 crore for the April – June quarter of the fiscal year 2025. Sequentially, the profit also slumped by 20.1 per cent compared to Q4 FY24, when the company recorded a net profit of Rs 18,951 crore.
The company’s revenue for the period was Rs 2.32 trillion, marking an 11.7 per cent increase compared to the year-ago period. However, this was a 2 per cent decline compared to the previous quarter (Q4 FY24), when the revenue stood at Rs 2.65 trillion.
Its standalone profit from the oil-to-chemical business (O2C) decreased by 32.5 per cent quarter-on-quarter and by 20.9 per cent year-on-year to Rs 7,611 crore. Revenue of Rs 1.30 trillion was down by 11.5 per cent quarter-on-quarter but increased by 5 per cent year-on-year.
This marks the company’s second consecutive quarter of profit decline, with net profit falling in three of the past five quarters. RIL’s Q1 FY25 earnings also fell short of Street estimates.
The company attributes the lackluster performance in the first quarter of the current fiscal year to weakness in its oil-to-chemicals (O2C) division and higher depreciation costs, which offset gains in the consumer (retail and telecom) and oil & gas upstream businesses.
Mukesh Ambani, Chairman and Managing Director of RIL, commented: “Consolidated EBITDA (earnings before interest, taxes, depreciation, and amortisation) for the quarter improved from a year ago, with strong contributions from the consumer and upstream businesses offsetting the weak O2C operating environment. Reliance’s resilient operating and financial performance in this quarter underscores the strength of its diverse portfolio of businesses.”
