Reliance Industries (RELIANCE) Q2 24/25 earnings summary

Executive summary

• Consolidated revenue for Q2 FY25 was ₹258,027 crore, up 0.8% year-on-year, with robust growth in digital services and upstream segments, but weak Oil-to-Chemicals (O2C) performance; net profit was ₹19,323 crore, down 2.8% YoY.

• Digital services and upstream (oil & gas) segments showed strong growth, offsetting weak O2C; retail remained steady with margin improvements and operational efficiency focus.

• Digital services benefited from improved ARPU, strong 5G and FTTH momentum, and subscriber growth; retail focused on customer proposition and operational streamlining.

• The group maintained a healthy balance sheet, robust liquidity, and prudent capital allocation, with capex mainly in O2C and New Energy.

Financial highlights

• EBITDA for Q2 FY25 was ₹43,934 crore, down 2% YoY; PAT was ₹19,323 crore, down 2.8% YoY; standalone PAT at ₹7,713 crore, down 31.2% YoY.

• Digital services revenue grew 17.7% YoY to ₹37,119 crore; EBITDA up 17.8% YoY to ₹15,931 crore; ARPU at ₹195.1, up 7.4% YoY.

• Retail revenue was ₹76,302 crore, down 1.1% YoY; EBITDA at ₹5,850 crore, up 0.3% YoY; PAT increased 5.2%.

• O2C revenue was ₹155,580 crore (+5% YoY), EBITDA at ₹12,413 crore (-24% YoY), impacted by lower fuel cracks and weak chemical margins.

• Oil and gas EBITDA rose 11% to ₹5,290 crore, with strong production and margins.

Outlook and guidance

• Retail expects strong growth momentum in the upcoming festive season, with early October showing robust demand.

• Digital services aim to add one million Jio AirFiber homes monthly, with continued 5G expansion and subscriber growth.

• Oil and gas segment anticipates higher prices and steady production, supported by resilient Indian gas demand.

• O2C faces ongoing margin volatility due to global supply-demand dynamics and geopolitical factors.

• The Board and Audit Committee have reviewed and approved the results, with a limited review by statutory auditors.