MUMBAI: Reliance Industries Ltd (RIL) on Monday reported a consolidated revenue of Rs2.58 lakh crore for Q2 FY25, showcasing the strength of its diversified business portfolio.
RIL, India’s most valuable company reported a 5 per cent fall in the July-September quarter net profit as weak oil refining and petrochemical business hurt operational performance.
Its consolidated net profit fell to Rs16,563 crore or Rs24.48 per share in July-September – the second quarter of the current fiscal – compared to Rs17,394 crore or Rs25.71 a share in the same period a year back, according to a company statement.
While the company’s Oil to Chemicals (O2C) segment faced challenges, its digital services and new energy ventures showed robust growth, highlighting RIL’s strategic focus on the future.
Digital and telecom services
A significant driver of RIL’s performance was its digital arm, Jio Platforms Ltd (JPL), which posted a 17.8 per cent year-on-year EBITDA growth.
This growth was supported by a better subscriber mix, the scaling up of digital services, and revised telecom tariffs. Mukesh Ambani, Chairman and Managing Director, noted that “Growth in Digital Services was led by increased ARPU and improving customer engagement metrics,” and emphasised the growing success of the JioAirFiber offering, which is fueling momentum in the home broadband market.
Ambani further highlighted the broader impact of Jio, stating that its extensive services are helping to digitally empower not only urban areas but also villages and small businesses across India.
He pointed to Jio’s role in leading the adoption of innovative deep-tech solutions and AI on a national scale.
Upstream strength
Despite the overall revenue growth, the O2C segment experienced a sharp 23.7 per cent drop in EBITDA due to a decline in product margins and lower fuel cracks, which were down nearly 50 per cent year-on-year.
Downstream chemicals also faced headwinds from weak global demand and excess supply. However, Reliance benefited from favourable ethane cracking economics due to a sharp drop in ethane prices, cushioning some of the O2C weakness.
Meanwhile, RIL’s Oil and Gas business posted an 11 per cent rise in EBITDA, driven by sustained volume growth and one-time provisions related to the decommissioning of the Tapti field.
Retail Segment
Reliance Retail Ventures Ltd (RRVL) also maintained its growth trajectory, with a 30 basis point improvement in EBITDA margin.
The retail business continues to scale, expanding its consumer touchpoints across both physical and digital platforms. Ambani stressed the importance of the retail business’s unique omni-channel model in meeting the diverse needs of India’s vast customer base.
He emphasised that RIL’s partnerships with both domestic and global players are further strengthening its product portfolio.
Renewable Energy
Looking ahead, Ambani highlighted RIL’s progress in the green energy sector, with its first New Energy Giga-factory set to begin production of solar PV modules by the end of the year. He noted that the New Energy business, which spans solar, energy storage systems, green hydrogen, bio-energy, and wind, is set to play a significant role in the global transition to clean energy.
This diversification into renewable solutions underscores RIL’s commitment to becoming a key player in the sustainable energy space.
