RIL profit jumps 41% on strong O2C performance

Revenue was also higher than Bloomberg's estimate of Rs 313,727 crore by 6.1%. Earnings before interest, tax, depreciation and amortisation (Ebitda) rose 23.4% to Rs 56,616 crore, against the estimate of Rs 51,942 crore. 1 billion, AWS sales rise 39 However, Ebitda growth lagged revenue growth, resulting in a contraction in operating margins. Ebitda margin declined to 17% from 17.7% a year ago, indicating that the sharp increase in revenue did not translate into a proportionate improvement in operating profitability.

The O2C business was the principal driver of the earnings growth, with segment revenue rising 44.2% year-on-year to Rs 2,31,601 crore and Ebitda increasing 67.9% to Rs 25,203 crore. The improvement was led by higher crude and product prices, as geopolitical disruptions tightened global energy supplies. Transportation fuel prices rose 50-78% year-on-year, while refining margins strengthened sharply amid disruptions to refinery operations in West Asia and Russia.

Fuel cracks, which represent the difference between refined product prices and crude oil costs, increased 3 to 3.7 times over the year-ago quarter. Downstream petrochemical margins also improved, with polyester chain margins rising 33%. Jio Platforms continued to deliver steady growth. However, Reliance Retail Ventures (RRVL) reported a weaker profitability performance. 6% to Rs 6,020 crore and Ebitda falling 2% to Rs 4,901 crore.

Lower production and price realisation from the KG-D6 block weighed on performance, partly offset by higher condensate realisation and improved coal bed methane prices and volumes. Reliance chairman and managing director Mukesh Ambani said the company's businesses delivered a strong performance despite commodity market volatility and geopolitical tensions affecting global supply chains. “Our O2C business delivered a particularly strong performance this quarter, led by tight fuel markets, improved downstream petrochemical deltas and firm domestic demand,” he said.

He added that the company's integrated operations and ability to optimise feedstock sourcing helped improve margin capture. Depreciation increased 6.2% year-on-year to Rs 15,315 crore, while finance costs rose 24.2% to Rs 8,481 crore, partly reflecting the capitalisation of 5G assets. Capital expenditure stood at Rs 38,153 crore, largely towards O2C and new energy projects, as well as expansion of consumer businesses.

Despite the spending, net debt declined to Rs 1.17 lakh crore from Rs 1.25 lakh crore at the end of FY26, supported by an increase in cash and cash equivalents to Rs 2.68 lakh crore. Separately, the company's board approved an enabling resolution to raise up to Rs 15,000 crore through non-convertible debentures.