Reliance Industries Q2 Results: Profit shoots up 41% YoY to Rs 25,548 crore, revenue surges 29%

Mukesh Ambani-led Reliance Industries Ltd (RIL) on Friday reported a 41% year-on-year (YoY) growth in consolidated net profit (attributable to shareholders) to Rs 25,548 crore for the September quarter, compared with Rs 18,165 crore in the corresponding period last year, supported by a strong performance from its oil-to-chemicals and digital-services businesses.

Revenue from operations rose 29% to Rs 3.32 lakh crore from Rs 2.58 lakh crore a year ago.

The company's board has also passed an enabling resolution authorising the issuance of non-convertible debentures of up to Rs 15,000 crore in one or more tranches, on a private placement basis.


Also Read: Jio Platforms Q2 Results: Profit rises 14% YoY to Rs 8,389 crore; revenue up 11%

"During the second quarter, our businesses delivered a strong performance despite a complex operating environment. Commodity markets remained volatile while geopolitical tensions continued to weigh on global supply chains. Against this backdrop, the domestic orientation of our portfolio, combined with operational discipline and versatility of our integrated businesses, helped Reliance navigate external volatility effectively," said Mukesh Ambani, Chairman and MD, RIL.

On a sequential basis, profit increased 27% from Rs 23,196 crore in the June quarter, while revenue rose 6% from Rs 3.11 lakh crore.

EBITDA during the quarter climbed 15% from Rs 54,067 crore. However, the consolidated EBITDA margin contracted by 60 basis points to 17.2% from 17.8% a year ago, even as it improved from 15.9% in the preceding quarter.

Reliance O2C business

Reliance's O2C business emerged as the biggest driver of quarterly earnings growth, reporting a 68% YoY increase in EBITDA to a record Rs 25,203 crore from Rs 15,008 crore.

Segment revenue jumped 44% to Rs 2.31 lakh crore from Rs 1.6 lakh crore, supported by higher crude oil prices, stronger transportation fuel realisations and improved petrochemical margins.

On a sequential basis, O2C EBITDA surged 48.2% from Rs 17,010 crore, while revenue increased 14.8%. The segment's EBITDA margin expanded to 10.9% from 9.3% a year earlier.

Also Read: Reliance Retail Q2 Results: Net profit falls 24% YoY to Rs 2,611 crore; gross revenue rises 6%

Reliance said global refining margins strengthened sharply amid supply disruptions in the Middle East and Russia.

Diesel refining cracks rose 252% YoY to $65.8 per barrel, while jet fuel cracks increased 268% to $59.3 per barrel. Gasoline cracks nearly tripled to $24.9 per barrel.

Petrochemical profitability also improved, with polyester chain margins rising 33% to their highest levels in three years.

Refinery throughput recovered to 20.6 million tonnes from 18.1 million tonnes in the June quarter, following planned maintenance in the preceding period.

Higher freight costs, crude premiums and under-recoveries in domestic fuel retailing partially offset the improvement.

Jio Platforms (Digital services)

Jio Platforms reported a 14% YoY increase in profit after tax to Rs 8,387 crore from Rs 7,379 crore, supported by subscriber additions and higher average revenue per user (ARPU). Revenue from operations grew 11.4% to Rs 40,475 crore from Rs 36,332 crore.

EBITDA increased 16.6% to Rs 21,879 crore, while EBITDA margin expanded by 250 basis points to 54.1%. Jio added 91 lakh subscribers during the quarter, taking its total customer base to 54.24 crore from 53.33 crore at the end of June.

ARPU improved to Rs 218.8 per month from Rs 215.6 in the preceding quarter and Rs 211.4 a year earlier. The company's 5G subscriber base crossed 30 crore, while fixed broadband connections reached 3 crore.

Monthly data consumption per customer increased to 44.2 GB, compared with 38.7 GB a year earlier. The results marked Jio's first quarterly earnings announcement after its blockbuster stock market listing on October 28.

Oil and gas

Reliance's oil and gas exploration and production business reported a 2% YoY decline in EBITDA to Rs 4,901 crore from Rs 5,002 crore. Segment revenue slipped 0.6% to Rs 6,020 crore from Rs 6,058 crore. The EBITDA margin contracted to 81.4% from 82.6% a year earlier.

The company attributed the weaker performance to lower production and gas price realisations from its KG-D6 fields, alongside higher government levies.

Average KG-D6 gas realisation declined to $8.88 per million British thermal units (MMBtu) from $9.97 a year earlier. KG-D6 production fell 9% to 57.8 billion cubic feet equivalent, while coal-bed methane production increased 21.4%.

Higher condensate prices and favourable currency movements provided some support to the business.

JioStar

Reliance's media and entertainment business, JioStar, reported a 10% YoY increase in revenue from operations to Rs 6,806 crore from Rs 6,179 crore. However, EBITDA declined 13.6% to Rs 1,502 crore from Rs 1,738 crore.

Profit after tax fell 13% to Rs 1,147 crore from Rs 1,322 crore, reflecting pressure on profitability despite higher subscription and digital advertising revenue. The EBITDA margin contracted to 22.1% from 28.1% a year earlier.

JioHotstar recorded an average of around 44 crore monthly active users during the quarter, representing 10% year-on-year growth.

The streaming platform also expanded its international presence, launching JioHotstar-branded services in Singapore, the United Kingdom and Canada. Reliance said subscription revenue and digital entertainment advertising supported growth, although the broader advertising environment remained weak.

Other consolidated numbers

Reliance reported consolidated net debt of Rs 1.17 lakh crore at the end of September, declining from Rs 1.22 lakh crore in June. Outstanding debt stood at Rs 3.84 lakh crore, while cash and cash equivalents increased to Rs 2.67 lakh crore.

The net debt-to-annualised EBITDA ratio improved to 0.47 times from 0.57 times in the preceding quarter.

Capital expenditure stood at Rs 38,153 crore during the September quarter, with investments directed towards O2C, new energy projects and expansion of the company's consumer businesses.

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