Reliance Industries Reports Q2 FY25 Revenue Of ₹2.58 Lakh Crore Amid Mixed Performance Across Segments

Reliance Industries Limited (RIL) announced a quarterly consolidated revenue of ₹2.58 lakh crore for Q2 FY25. The company experienced growth in several areas, while some segments faced challenges.

Revenue Growth Driven by Digital Services

The Oil to Chemicals (O2C) revenue increased due to higher volumes and more domestic product placements. Additionally, the digital services revenue rose, driven by revised telecom tariffs for mobility services and an expansion in homes and digital services. However, the Oil and Gas segment reported a 6 percent decline in revenue due to lower gas price realizations.

RIL’s EBITDA decreased by 2 percent year on year, totaling ₹43,934 crore ($5.2 billion). In contrast, Jio Platforms Limited (JPL) saw a significant EBITDA increase of 17.8 percent, attributed to a better subscriber mix and the scale-up of digital services.

Challenges in O2C and Retail Segments

Despite improvements in other areas, the O2C EBITDA fell by 23.7 percent due to a sharp decline in product margins. Fuel cracks decreased by nearly 50 percent year on year, and downstream chemicals suffered from muted global demand. Nonetheless, RIL benefited from superior ethane cracking economics due to falling ethane prices.

On a positive note, the Oil and Gas segment’s EBITDA grew by 11 percent, fueled by sustained volume growth and one-time provisioning for decommissioning costs related to the Tapti field in Q2 FY24.

Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries, expressed satisfaction with the results. He highlighted the resilience of the diversified business portfolio and noted robust growth in Digital Services and the Upstream business, which partially offset weaker contributions from the O2C sector.

Ambani emphasized the strong performance of the digital services segment, citing increased average revenue per user (ARPU) and enhanced customer engagement metrics. He mentioned the growing momentum of JioAirFiber in the home broadband segment, aiming to digitally empower every corner of India.

Ambani also underscored the retail segment’s expansion, with increasing consumer touchpoints and a focus on strengthening operations. He announced that the first of RIL’s New Energy Giga-factories is on track to start producing solar PV modules by the end of the year, contributing to the global clean energy transition.

Also Read: India’s CPI Inflation Jumps To 5.49% In September Due To Weather And High Base Effect