For Q4 FY26, Reliance Industries reported a 13% year-over-year drop in net profit, mostly as a result of deterioration in its main oil-to-chemicals (O2C) business, which was hurt by geopolitical tensions throughout the world.
The company’s revenue increased 13% year over year to ₹2.99 trillion, and it reported a consolidated profit of ₹16,971 crore, which was marginally over market forecasts.
The O2C industry was most negatively impacted by rising crude oil prices, increased shipping and insurance costs, and supply disruptions related to the ongoing conflict between the US, Israel, and Iran. Higher gasoline prices caused sector revenue to increase by 12% to ₹1.85 trillion, but margin pressure caused EBITDA to drop by almost 4% to ₹14,520 crore.
Improved gross refining margins (GRM), which skyrocketed to $40–50 per barrel despite unstable global conditions—much higher than the historical average of $5–10—partially mitigated these difficulties. However, other variables that affected profitability included the absence of cheap crude and the redirection of LPG supply to priority industries.
Positively, Reliance’s consumer-facing companies saw consistent growth. Jio Platforms maintained its outstanding performance, reaching over 525 million users during the quarter with the addition of 9.1 million subscribers. EBITDA increased by 18%, revenue increased by 13% to ₹38,259 crore, and margins increased to 52.4%. Additionally, average revenue per user (ARPU) increased by 4% to ₹214.
Reliance Retail also demonstrated resiliency, with revenue increasing 11% year over year to ₹87,344 crore. By adding 181 new locations, the corporation increased its overall number of outlets to almost 20,000. The retail segment’s net profit increased slightly to ₹3,563 crore.
Overall, the energy industry continues to confront short-term challenges due to global uncertainties, even as telecom and retail offered stability. Analysts are nonetheless cautious, pointing out that stabilizing crude prices and reducing geopolitical tensions are necessary for a turnaround in O2C margins.
Despite steady operational performance in important growth categories, Reliance’s shares closed the day 1.15% lower, indicating market fears.
