Reliance Industries Q2 net profit dips 4.77% YoY to Rs 16,563 crore

Reliance Q2 results: Mukesh Ambani -led Reliance Industries Ltd (RIL) on Tuesday reported its financial results for the second quarter of FY25, posting a net profit of Rs 16,563 crore, down 4.77 per cent from Rs 17,394 crore reported in the year-ago period. This result was closely aligned with analyst expectations of  Rs 16,561 crore, according to LSEG data.

The company's revenue from operations remained flat at Rs 2.32 lakh crore on a year-on-year basis. The oil-to-telecom conglomerate's consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) margin stands at 16.9 per cent in Q2 FY25 as against 17.7 per cent in Q2 FY24.

Revenue from Reliance's oil-to-chemicals (O2C) operations rose approximately 5 per cent year-on-year to Rs 1.56 lakh crore, a notable decrease from the 18 per cent growth seen in the previous quarter. The decline in profitability can be attributed to a significant 31 per cent drop in Asian refiners' margins this year, driven by reduced demand for petroleum products and an increase in refining output, which heightened the supply of petrol and diesel.

Reliance noted in its statement that an "unfavourable demand-supply balance" led to a sharp 50 per cent decrease in transportation fuel cracks and ongoing weakness in downstream chemical pricing. The Jamnagar complex, home to two refining plants with a combined capacity of about 1.4 million barrels per day, remains central to Reliance's O2C operations and is a critical profit driver for the company.

Despite its diversification into sectors such as retail, telecom, and green energy, Reliance's O2C operations account for two-thirds of its total revenue.

In contrast, the company's telecom division, Reliance Jio Infocomm, reported a 23 per cent increase in profit, largely due to its first tariff hike in over two years, which raised the average revenue per user—a key metric for telecom companies—by 7.4 per cent to Rs 195.1. However, Jio's subscriber base fell by 2.2 per cent sequentially to 478.8 million, as analysts suggested some users switched to cheaper carriers in response to the increased tariffs. Jio's revenue from operations rose 14.5 per cent to Rs 28,338 crore.