Reliance Industries Ltd (RIL), helmed by Mukesh Ambani, unveiled its fiscal fourth quarter earnings report, showcasing a 2.4% profit growth despite challenges in its oil and petrochemical sectors. This growth was largely supported by strategic store rationalization in its retail arm and enhanced margins in the telecom division. The company recorded a consolidated profit of Rs 19,407 crore for the quarter, an increase from Rs 18,951 crore during the same period last year.

Strong Revenue Performance

In the latest quarter, RIL’s revenue from operations surged to Rs 2,64,573 crore, reflecting a 9.91% increase compared to Rs 2,40,715 crore in the fourth quarter of the previous fiscal year. The consolidated EBITDA also highlighted performance stability, reaching Rs 43,832 crore.

Annual Profit Stability

For the fiscal year, RIL’s profits hovered around Rs 69,648 crore, marking stability amid fluctuations. Notably, the conglomerate achieved a significant milestone by becoming the first entity to exceed a net worth of Rs 10 lakh crore in 2024-25. Previously, it was the pioneer to attain a market capitalization of Rs 20 lakh crore.

Telecom and Retail Growth

The telecom sector saw a substantial boost in profit, with Jio Platforms Ltd reporting a 26% increase to Rs 7,022 crore in Q4, and a 22% rise for the entire year at Rs 26,120 crore. The subscriber base grew to 488.2 million, up from 482.1 million in the previous quarter, highlighting increased engagement across key metrics such as data usage and average revenue per user.

In retail, Reliance Retail Ventures Ltd experienced a 29% year-on-year profit increase, totaling Rs 3,545 crore. The company expanded its footprint by opening 238 new stores, bringing the total to 19,340, although the operational area slightly decreased due to strategic store rationalization.

Challenges in Oil-to-Chemicals

Conversely, the oil-to-chemicals business faced headwinds, with pre-tax earnings declining due to reduced fuel cracks and polyester margins. The EBITDA for this segment dropped by 10% in Q4 to Rs 15,080 crore. Despite these challenges, RIL managed to offset some losses by increasing domestic fuel supply.

Fuel Retail Insights

In the fuel retail sector, RIL’s joint venture, Jio-bp, reported impressive growth, with diesel and petrol sales soaring by 24.4% and 25.4%, respectively. However, the oil and gas segment’s pre-tax profit fell by 8.6% to Rs 5,123 crore due to lower gas production from the KG-D6 fields.

Leadership Perspective

Mukesh D Ambani, Chairman and Managing Director of RIL, acknowledged the hurdles in the global business arena for FY25, citing weak macroeconomic conditions and evolving geopolitical dynamics. He emphasized the company’s commitment to operational excellence and innovation to meet India’s growth needs, which has enabled Reliance to achieve consistent financial results.

In summary, while RIL navigates various challenges, its strategic initiatives in telecom and retail have proven effective, contributing to a resilient financial performance.