Reliance Industries Q1 earnings: Net profit falls 22% to ₹20,946 crore; EBITDA rises 11%

Reliance Industries, the country's most valuable company, on Friday, July 17, reported a net profit of ₹20,946 crore in the first quarter of current financial year (Q1FY27), marking a decline of 22% from ₹26,994 crore in the same period last year.

The decline in profit came on the back of lower other income as its other income component dropped 57% to ₹6,550 crore in the first quarter from ₹15,119 crore. Sharply higher other income in the previous financial year came after Reliance Industries sold stake in Asian Paints.

Reliance Industries total revenue from operations rose 25% to ₹3.11 lakh crore in Q1 from ₹2.48 lakh crore in the year-ago period.

The company reported stable operational performance as its consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA) advanced 11% to 47,517 crore compared with ₹42,905 crore.

Its EBITDA margin, however, shrunk by 200 basis points to 15.24% from 17.25% in the year-ago period.

"Reliance has made a steady start to FY27, with all businesses delivering strong operating performance. Our diverse business portfolio has once again demonstrated its resilience in a quarter which witnessed continuing geopolitical tensions and volatile commodity markets," Mukesh Ambani, Chairman and Managing Director, Reliance Industries said in a statement.

Jio Platforms Q1

Its EBITDA increased by 15% annually driven by strong double digit revenue growth and margin expansion of 150 bps.

Jio's customer base increase 7.1% annually to 533.3 million subscribers and its average revenue per user (ARPU), a key metric to gauge the profitability of a telecom company, increased to ₹215.6 from ₹208.8 in the year-ago period.

“Jio has established itself as a deep tech company and demonstrated the velocity of innovation across multiple advanced technologies. This is underlined by our strong patent portfolio which has been recognised globally. We intend to use these technologies to offer an ever-expanding bouquet of services to every citizen of India and drive industry leading growth for many years to come. As we embark on our next phase of journey to be a publicly listed company in India, we will continue to maintain our deep tech focus and democratise access to digital connectivity and digital services in India and globally,” said Akash Ambani, Managing Director of Jio Platforms.

Reliance Retail Ventures Q1

The retail arm of Reliance Industries reported net profit of ₹2,806 crore, marking a decline of 14% from ₹3,271 crore a year earlier. Its EBITDA contracted marginally to ₹6,309 crore and EBITDA margin contracted by 80 basis points to 7.9%.

The company opened 252 stores during the quarter taking the total store count to 20,169 and area at 78.4 million square feet.

The registered customer base grew to 396 million, up 10.6% annually, making Reliance Retail one of the most preferred retailers in the country, Reliance Retail said.

“Reliance Retail delivered resilient performance in Q1 FY27, with growth across the key consumptions baskets. Our continued investment in digital commerce underscores the transformative power of our digital platforms. Our expanding customer base, widest store network, and growing omni-channel capabilities position us well to continue fulfilling every need, every dream, for every Indian, every day," said Isha Ambani, Executive Director, Reliance Retail Ventures.

Oil to chemicals business Q1 performance

Segment revenue for oil to chemicals business increased by 30% to ₹2,01,803 crore mainly due to sharp increase in crude oil prices by 54.1% annually partially offset by lower production due to planned turnaround.

EBITDA for Q1FY27 was higher by 17.2% at ₹ 17,010 crore due to sharp increase in transportation fuel cracks and downstream margins. The segment performance was also supported by crude basket diversification, efficient product placement in deficit markets and favourable ethane cracking economics, Reliance Industries said.

"Multiple headwinds curtailed margin capture including high crude premiums on physical barrels along with higher freight and insurance costs. Further, to protect domestic consumers, RIL diverted propane / butane to boost LPG output and held domestic fuel prices at retail outlets, leading to under recoveries in fuel retailing. Reintroduction of SAED on Diesel, MS and ATF has adversely impacted margins from domestic business," the country's most valuable company added.

Reliance Industries shares ended 2.36% higher at ₹1,327 ahead of its earnings announcement.