Ten takeaways from Reliance results as conglomerate posts record Q2 for consumer businesses

Mukesh Ambani, Chairman and Managing Director, Reliance Industries (RIL)

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26 Aug, 2025 12:21

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Billionaire Mukesh Ambani-owned Reliance Industries on October 21 reported a record performance in consumer businesses which continued to scale new milestones every quarter, but its performance in the O2C (oil-to-chemical) business reflected subdued demand and weak margin environment across downstream chemical products.

Reliance registered a 0.2 percent year-on-year growth in consolidated profit at Rs 15,512 crore for the quarter ended September FY23, with cash profit growing 15.4 percent to Rs 27,614 crore for the same period.

Its other income during the quarter fell by 16.8 percent to Rs 3,514 crore YoY.

The gross revenue for the quarter at Rs 2.53 lakh crore was higher by 32.4 percent compared to year-ago period, while revenue from operations increased by 33.7 percent to Rs 2.32 lakh crore.

The increase of 32.4 percent in gross revenue was driven by higher realization in O2C business with sharp increase in energy prices. Revenue growth also reflects continued growth momentum across consumer businesses, the company said.

At the operating level, Reliance said EBITDA (excluding the impact of special additional excise duty related costs of Rs 4,039 crore) for the quarter was Rs 38,702 crore, a 27.8 percent growth over a year-ago period. EBITDA including the impact of special additional excise duty stood at Rs 34,663 crore, up 14.5 percent YoY.

The growth in EBITDA was driven by positive operating leverage and operational efficiencies in retail segment, higher gas price realization with increase in ceiling price, increase in ARPU and customer engagement in digital services segment.

Reliance said its finance cost increased by 19.2 percent to Rs 4,554 crore during the quarter YoY, due to higher loan balances and tightening of monetary policy by central banks.

It has an outstanding debt as of September 2022 of Rs 2.94 lakh crore or $36.2 billion, while the cash and cash equivalents were at Rs 2.01 lakh crore ($24.8 billion).

The capital expenditure for the quarter was Rs 32,534 crore and additionally, it incurred expenses of Rs 88,078 crore for acquisition of spectrum by RJIL.

Jio Platforms, which owns Jio, recorded a 26.9 percent year-on-year growth in profit at Rs 4,729 crore for the quarter ended September FY23, backed by strong topline and operating performance.

Revenue from operations for the quarter at Rs 24,275 crore for the quarter increased by 22.7 percent year-on-year aided by increase in average revenue per user (ARPU).

ARPU during the quarter at Rs 177.2 per subscriber per month grew at a healthy pace of 23.5 percent growth on YoY basis, while the data traffic increased by 22.7 percent YoY to 28.2 billion GB during the quarter.

Total customer base of Jio as of September FY23 stood at 427.6 million.

"We saw consistent net subscriber additions and higher engagement in digital services segment," said Mukesh Ambani, Chairman and Managing Director.

Jio Platforms registered a massive 29.2 percent year-on-year growth in EBITDA at Rs 12,011 crore driven by strong revenue growth and margin improvement. The margin at 49.5 percent expanded by 250 bps YoY due to increase in ARPU, which partly offset by inflationary pressure on operating costs.

Reliance Retail delivered record revenue and profits during the quarter led by broad-based growth across all consumer baskets, with revenue growing a massive 44.5 percent year-on-year to Rs 57,694 crore and profit increasing 36 percent YoY to Rs 2,305 crore.

The business expanded its physical store network with 795 new store openings, taking the total store count at the end of the quarter to 16,617 stores with an area of 54.5 million square feet, Reliance said.

Retail EBITDA from operations increased 75.9 percent YoY to Rs 4,286 crore in Q2FY23, with a 130 basis point margin improvement over the same time last year resulting from favourable mix, positive operating leverage and operational efficiencies.

As consumers returned to stores, Reliance Retail received over 180 million footfalls across formats and geographies in the quarter, a growth of 23 percent over pre-COVID period, the company said.

The oil to chemicals (O2C) business reported a 32.5 percent year-on-year growth in revenue at Rs 1.59 lakh crore, primarily on account of higher crude oil prices.

Crude oil benchmarks rose YoY due to recovering oil demand, aggressive production cuts announced by OPEC+, limited spare capacity and imminent European Union sanctions on Russian oil exports. Dated Brent crude averaged $100.9 a barrel in Q2FY23, rising by $27.4 a barrel YoY, but declined by $13 per barrel QoQ.

RIL's production meant for sale was lower by 3.6 percent YoY to 16.2 MMT with planned turnaround of primary and secondary units of SEZ refinery for maintenance & inspection.

"Performance of O2C business reflect subdued demand and weak margin environment across downstream chemical products. Transportation fuel margins were better than last year but significantly lower sequentially," Mukesh Ambani said.

He further said the segment performance was also impacted by the introduction of special additional excise duties during the quarter to ensure stable supply and lower volatility in the domestic market.

At the operating level, its EBITDA declined by 5.9 percent YoY to Rs 11,968 crore primarily on account of introduction of special additional excise duty on transportation fuels and lower polymer deltas, with margin falling by 310 bps YoY to 7.5 percent.

Exports (including deemed exports) from RIL's India operations increased by 57.5 percent to Rs 86,382 crore compared to year-ago period, mainly due to higher price realizations despite lower downstream product volumes.

"Domestic oil & gas business continued to deliver robust performance maintaining production at 19 MMSCMD levels in the KG D6 block, significantly enhancing energy security for the country. We are confident of commissioning MJ Fields by year-end," Mukesh Ambani said.

The oil & gas segment clocked a 134.4 percent YoY growth in revenue at Rs 3,853 crore led by higher production and improved gas price realization.

KG-D6 gas production during the quarter was at 41 BCF (RIL's share) against 39.2 BCF (billions of cubic feet) production in Q2FY22.

Average gas price realisation for KG-D6 increased sharply to $9.86 per metric million British thermal unit (MMBTU) during the quarter compared to $3.62 per MMBTU in Q2FY22, with raising of gas price ceiling by the Government of India for first half of FY23, Reliance said.

Oil & gas segment reported nearly 3 times YoY increase in EBITDA to Rs 3,171 crore for the quarter, with margin expanding by 12.6 percentage points to 82.3 percent.