Reliance Reports 13% Drop in Q4 Profit Amid O2C Disruptions

Reliance Industries Reports 13% Drop in Profit for Q4 Due to US-Israel-Iran War

In a press release on Friday, Mukesh Ambani, the chairman and managing director of Reliance Industries, stated that the company faced significant challenges in the January-March period due to geopolitical disruptions, volatile energy prices, and shifting global trade patterns.

The company's oil refining business was heavily impacted by higher crude prices and expensive shipping and insurance costs resulting from the ongoing US-Israel-Iran war. However, Reliance's oil-to-chemicals (O2C) segment managed to offset some of the impact of high input costs through higher fuel cracks. This, combined with resilient contributions from the telecom and retail segments, resulted in a flattish operating income at a consolidated level.

Reliance Industries reported a consolidated profit of ₹16,971 crore in Q4, marginally above the consensus estimate of ₹16,944 crore of six analysts polled by Bloomberg. Consolidated revenue grew 13% year-on-year (y-o-y) to ₹2.99 trillion. However, earnings before interest, taxes, depreciation, and amortization (Ebitda) declined marginally to ₹48,588 crore.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Key Segment Performance

Revenue from the O2C segment grew 12% year-on-year on the back of higher fuel prices to ₹1.85 trillion. However, Ebitda for the segment fell by just under 4% to ₹14,520 crore. The company's telecom business, on the other hand, reported a 13% increase in revenue and an 18% expansion in Ebitda. Reliance Retail's revenue grew 11% y-o-y to ₹87,344 crore, while Ebitda grew 3% to ₹6,921 crore.

The company's shares ended 1.15% lower on the BSE on Friday at ₹1,327.65. The benchmark Sensex closed the session 1.29% lower. The results were announced after market hours.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

For the full year FY26, Reliance Industries reported a consolidated topline of ₹10.8 trillion, up by nearly a tenth. Ebitda for the year was 13.4% higher at ₹2.1 trillion, while consolidated profit grew by nearly 16% to ₹80,775 crore.