Reliance Industries (RELIANCE) Q1 24/25 earnings summary

Executive summary

• EBITDA rose 2% year-on-year to ₹42,748 crore, driven by consumer and upstream businesses, offset by weak O2C performance.

• Net profit (PAT) declined 4.5% year-on-year to ₹17,445 crore, mainly due to lower O2C margins and higher depreciation.

• Revenue increased 12% year-on-year to ₹236,217 crore, with growth in retail, digital, and higher oil prices.

• Retail and digital services segments delivered robust growth, while O2C earnings were impacted by lower fuel cracks and challenging downstream margins.

• Oil & Gas segment saw strong volume-driven growth, offsetting lower price realization.

Financial highlights

• Retail revenue grew 8% year-on-year to ₹75,630 crore; EBITDA up 10% to ₹5,672 crore; PAT at ₹2,549 crore, up 5%.

• Digital services revenue up 12.8% year-on-year to ₹35,470 crore; EBITDA at ₹14,944 crore; PAT up 11.7% to ₹5,693 crore.

• O2C EBITDA fell 14% year-on-year to ₹13,093 crore, impacted by lower gasoline and petrochemical margins.

• Oil & gas EBITDA up 30% year-on-year to ₹5,210 crore, driven by higher KG-D6 production.

• Net debt reduced to ₹112,341 crore from ₹116,281 crore in March; CapEx at ₹28,785 crore, down from prior year.

Outlook and guidance

• Tariff hikes in digital services expected to benefit future quarters; Jio's revised tariffs to impact results.

• Retail and digital businesses positioned for continued growth, supported by tech and supply chain investments.

• O2C margins expected to improve with resilient Indian demand and seasonal drivers, though volatility remains.

• Oil & gas segment to sustain production growth, with robust Indian gas demand.

• Prudent financial management and robust balance sheet to support growth initiatives.