Reliance Industries Q1 Results: O2C segment revenue falls 1.5% YoY; EBITDA grows 10.8%

The oil-to-telecom giant said its revenue for the O2C segment during the June quarter came in at ₹154,804 crore, down 1.5% year-on-year (YoY) due to a fall in crude oil prices and lower volumes on account of a planned shutdown.

Revenues were supported by higher domestic placement of transportation fuels through the Jio-bp network.

RIL added that the segment EBITDA, or operating profit, for Q1 FY26 increased by 10.8% YoY to ₹14,511 crore ($1.7 billion) due to favourable margins on domestic fuel retail and improvements in transportation fuel cracks as well as PP & PVC deltas.

This was partially offset by lower volumes due to planned turnaround and a decline in polyester chain marginsl, RIL said in its press release.

EBITDA stands for earnings before interest, taxes, depreciation, and amortisation.

EBITDA margin came in at 9.4%, up 110 basis points (bps) against 8.3% registered in the year-ago period.

Financials

Business Environment

In 1Q FY26, global oil demand rose by 0.6 mb/d Y-o-Y to 103.4 mb/d. Diesel demand was up by 0.3 mb/d Y-o-Y, gasoline demand increased by 0.2 mb/d Y-o-Y and Jet/Kero demand grew ~0.3 mb/d Y-o-Y.

Dated Brent averaged $67.8/bbl in 1Q FY26, down $17.1/bbl (-20%). YoY. Crude oil benchmarks fell YoY due to persistent tariff uncertainties and the accelerated unwinding of production cuts by OPEC+, the press release said.

Global refinery crude throughput was higher by 0.19 mb/d YoY at 81.8 mb/d in Q1 FY26.

During Q1 FY26 polymer domestic demand increased by 2% Y-o-Y. PP demand was up 7%, led by packaging, furniture, households, automotive, hygiene and consumer durables. PE demand is down 1% Y-o-Y due to lower demand from the infrastructure sector. PVC demand remained stable Y-o-Y despite the early arrival of the monsoon.

PP stands for Polypropylene (PP), PE stands for Polyethylene, and PVC means Polyvinyl Chloride.

Jio-bp update

Reliance BP Mobility Limited (RBML) (operating under the brand Jio-bp) operates a countrywide network of 1,991 outlets (vs 1,730 in 1Q FY25).

RBML quarterly sales for HSD grew at 34.2%, and MS grew at 38.6% on a Y-o-Y basis, as against the industry sales volume growth rate of (1.3%) for HSD and 7.1% for MS.

MS stands for Motor Spirit, which is commonly known as petrol or gasoline, and HSD stands for High-Speed Diesel.

RBML (operating under the brand air bp Jio) continued its robust sales, clocking 172 TKL in 1Q FY26 despite multiple disruptions during the quarter.

What Mukesh Ambani said on RIL Q1 FY26 numbers

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited, said: “Reliance has begun FY26 with a robust, all-round operational and financial performance. Consolidated EBITDA for 1Q FY26 improved strongly from a year-ago period, despite significant volatility in global macros."

During the quarter, energy markets encountered heightened uncertainty, with sharp fluctuations in crude prices.

"Our O2C business delivered strong growth, with a thrust on domestic demand fulfilment and offering value-added solutions through the Jio-bp network. Performance was supported by improvement in fuel and downstream product margins. Natural decline in KGD6 gas production resulted in marginally lower EBITDA for the Oil & Gas segment," the chairman said.

Ambani added, "Reliance is committed to contributing to India’s growth on this journey through inclusive growth, technological innovation and leading energy transformation. The performance of our businesses and growth initiatives gives me confidence that Reliance will continue its stellar track record of doubling every 4-5 years.”