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RIL Profit Dips 25% Amidst Market Volatility
18 Jul
Summary
- Consolidated net profit declined 25% due to prior year's exceptional gain.
- Revenue crossed ₹3 lakh crore, marking a 25% year-on-year increase.
- Jio Platforms reported its first-ever net profit decline of 2.2%.
Reliance Industries (RIL) announced a 25% decrease in consolidated net profit for the June quarter, settling at ₹23,001 crore. This dip is compared to the previous year's ₹30,681 crore, which included a ₹8,924 crore exceptional gain from the Asian Paints stake sale.
Despite the profit decline, RIL's revenue from operations climbed 25% to ₹3.12 lakh crore, surpassing the ₹3 lakh crore milestone for the first time in a quarter. Chairman Mukesh Ambani highlighted the "steady start" to FY27, with strong performance across all businesses and resilience amid geopolitical tensions and volatile commodity markets.
The oil-to-chemicals (O2C) segment showed robust growth, with revenue up 30.4% to ₹2,01,803 crore, though margins were affected by special excise duties on fuels. Reliance Retail Ventures saw its net profit drop 14.2% to ₹2,806 crore, while revenue rose 8.2% to ₹79,745 crore, impacted by the FMCG business demerger.
Jio Platforms, RIL's digital arm, reported its first-ever net profit decline of 2.2% to ₹7,764 crore. This reduction is attributed to increased depreciation and finance costs from the capitalization of 5G assets. However, Jio's revenue from operations grew 11.8% to ₹39,173 crore, driven by subscriber additions and 5G adoption.
