Reliance Industries Q4 FY26 Results: Profit Declines Amid Energy Weakness, Jio and Retail Stay Strong

Reliance-industries-ltd-100325">Reliance Industries Ltd (RIL), led by Mukesh Ambani, reported a mixed performance for the fourth quarter ended March 2026, as weakness in its core energy business offset steady growth in digital and retail segments. The quarter was impacted by geopolitical disruptions, volatile crude prices and shifting global trade dynamics linked to the ongoing Middle East crisis.

The company posted a consolidated net profit of Rs 16,971 crore in Q4 FY26, down 12.5 per cent year-on-year compared to Rs 19,407 crore. On a sequential basis, profit declined 8 per cent from Rs 18,645 crore in the December quarter. Despite the fall in profit, revenue from operations rose 13 per cent year-on-year to Rs 2.98 lakh crore, supported by double-digit growth across key segments including Oil-to-Chemicals (O2C), Digital Services and Retail. Gross revenue for the quarter stood at Rs 3,25,290 crore, up 12.9 per cent year-on-year.

At the operating level, EBITDA came in at Rs 48,588 crore, marginally down 0.3 per cent year-on-year. EBITDA margins contracted by 200 basis points to 14.9 per cent, reflecting pressure from the energy business. The decline in oil and gas performance, impacted by Middle East disruptions, offset strong contributions from consumer-facing businesses.

The O2C segment reported revenue of Rs 1,84,944 crore, up 12.4 per cent year-on-year, supported by a nearly 12 per cent increase in crude oil prices and higher domestic fuel volumes. However, the Oil and Gas (E&P) segment saw revenue decline 8.9 per cent year-on-year to Rs 5,867 crore due to lower gas price realisation and reduced production from the KG-D6 field.

Reliance Retail delivered steady growth during the quarter. Gross revenue stood at Rs 98,232 crore, up 10.8 per cent year-on-year, while revenue from operations rose 11.1 per cent to Rs 87,344 crore. EBITDA increased 3.1 per cent to Rs 6,921 crore, with margins remaining at 7.9 per cent due to continued investments in hyper-local commerce. Retail profit after Tax came in at Rs 3,563 crore, up 0.5 per cent year-on-year.

Jio Platforms continued to be a key growth driver. Revenue stood at Rs 44,928 crore, up 12.7 per cent year-on-year, while revenue from operations rose 12.6 per cent to Rs 38,259 crore. EBITDA surged 17.9 per cent to Rs 20,060 crore, with margins expanding 230 basis points to 52.4 per cent, driven by operating leverage. Profit after tax increased 13 per cent year-on-year to Rs 7,935 crore.

Jio’s subscriber base reached 524.4 million, with net additions of 9.1 million during the quarter. Average revenue per user (ARPU) rose 3.8 per cent year-on-year to Rs 214, while churn remained stable at 1.7 per cent.

In the media and digital segment, JioStar reported revenue of Rs 9,784 crore and profit after tax of Rs 420 crore. JioHotstar recorded an average of 500 million monthly active users, with TV entertainment viewership share at 34.2 per cent, reaching over 810 million viewers. Major sporting events drove engagement, with the ICC Men’s T20 World Cup 2026 final recording a peak concurrency of 72.5 million. The Tata IPL 2026 opening weekend reached over 515 million viewers across platforms.

On the balance sheet front, RIL reported capital expenditure of Rs 40,560 crore for the March quarter, taking full-year capex to Rs 1,44,271 crore. Net debt stood at Rs 1,24,717 crore, with a net debt-to-EBITDA ratio of 0.60x, indicating a comfortable leverage position. The board recommended a Dividend of Rs 6 per share for FY26.

Commenting on the performance, Mukesh Ambani said FY26 was marked by geopolitical disruptions, volatile energy markets and shifting global trade patterns. He highlighted that RIL’s diversified portfolio and strong domestic focus helped the company navigate external volatility, with consumer businesses providing stability against global headwinds.

Disclaimer: The article is for informational purposes only and not investment advice.