Reliance Industries Ltd (RIL), India’s largest private company, posted an 11.7% increase in net profit for the December quarter, driven by strong performances in its digital and retail segments, along with signs of recovery in its oil-to-chemicals (O2C) business.
The Mukesh Ambani-led conglomerate reported a net profit of ₹21,930 crore for the quarter, surpassing Bloomberg estimates, while consolidated revenue rose 7.7% year-on-year to ₹2.67 trillion.
O2C Business Shows Resilience
“The O2C business demonstrated its resilience, achieving growth despite prolonged volatility in global energy markets,” said Ambani, RIL’s chairman and managing director.
RIL has faced challenges in improving margins in its core O2C business, which contributes 50% of the company’s revenue. However, signs of recovery emerged as segment revenues grew 6% year-on-year to ₹1.49 trillion in Q3, aided by higher production.
Operating profit for O2C rose 2.4% to ₹14,402 crore, with an operating margin of 9.8%—slightly better than the previous quarter but 40 basis points lower than the same period last year.
“Refining margins improved sequentially, while petrochemical deltas showed a mixed trend,” Ambani noted. The company attributed its performance to increased ethane cracking over naphtha and a focus on yield optimization, which helped counterbalance weaker fuel cracks.
Domestic demand for key petrochemical products such as polypropylene, polyethylene, and PVC surged, driven by strong demand in consumer durables, packaging, construction, automotive, agriculture, and infrastructure.
Jio Platforms and Reliance Retail Drive Growth
RIL’s diversification strategy over the past decade is proving successful, with its digital and retail divisions contributing significantly to overall growth.
•Jio Platforms reported a 25.9% increase in net profit to ₹6,857 crore, with revenue rising 19.2% to ₹38,750 crore, fueled by the impact of tariff hikes and strong demand in home and digital services.
•Reliance Retail posted a 10.1% increase in net profit to ₹3,485 crore, while revenue grew 8.8% to ₹90,333 crore, supported by festive season demand and a surge in wedding-related purchases.
“Strong growth in digital services was driven by sustained subscriber additions and increasing customer engagement,” said Ambani.
During Q3, Jio added 2 million new home connections, bringing its subscriber base to 482 million, up 2.4% year-on-year. Despite a temporary slowdown due to SIM consolidation, customer additions rebounded to pre-tariff-hike levels by the end of the quarter.
Jio also launched JioAICloud, offering up to 100 GB of free cloud storage, further expanding its digital ecosystem.
“Jio has played a key role in digital inclusion, bringing world-class communication technology to every Indian,” said Akash Ambani, chairman of Reliance Jio Infocomm.
Jio’s AirFiber and ARPU Surge
Jio surpassed analyst expectations for net profit, revenue, and average revenue per user (ARPU), thanks to rising adoption of AirFiber, its high-speed wireless internet service. The company aims to become the world’s largest AirFiber provider, according to Anshuman Thakur, head of strategy at Jio.
Currently, 70% of new Jio connections come from beyond the top 1,000 towns and cities, with plans to add 1 million homes per month and expand to 100 million homes.
Jio’s ARPU rose to ₹203.3 in Q3, up from ₹195.1 in Q2 and 12% higher year-on-year, with further gains expected in the coming quarters as the impact of tariff hikes continues to unfold.
Retail Expansion and Festive Boost
Reliance Retail also saw strong footfall and online sales growth during the festive season, recording 296 million store visits and opening 779 new outlets, bringing its total store count to 19,102.
•The grocery business grew 37% year-on-year.
•Fashion and lifestyle saw a significant rebound.
•Consumer electronics sales surged 12% year-on-year, driven by new product launches and promotional campaigns.
“We are enhancing the shopping experience through JioMart’s express and scheduled deliveries, coupled with Milkbasket’s subscription services, to serve customers across all categories,” said Isha Ambani, executive director of Reliance Retail.
With sustained momentum in digital and retail businesses alongside a stabilizing O2C segment, RIL remains well-positioned for continued growth in the coming quarters.