Reliance Q1 Profit Jumps 78% to ₹26,994 Cr, Hits New Record

Photo : Bloomberg

Reliance Industries Limited (RIL), India’s largest conglomerate led by billionaire Mukesh Ambani, posted stellar Q1 results for the April–June 2025 quarter, marking a record-breaking consolidated net profit of ₹26,994 crore. This marks a sharp 78% year-on-year (YoY) increase in net profit, up from ₹15,138 crore in Q1 FY24.

Key Drivers Behind the Massive Profit Surge:

1. Exceptional Gain from Asian Paints Stake Sale:

   • A significant one-time gain of ₹8,924 crore came from the sale of Reliance’s entire 3.76% stake in Asian Paints during the quarter.

   • This strategic divestment boosted the bottom line and unlocked capital for future investments in core sectors like energy, retail, and digital services.

2. Robust Performance in Core Businesses:

   • Oil-to-Chemicals (O2C): Benefited from higher refining margins and stable demand for petrochemicals.

   • Telecom (Jio Platforms): Continued growth in data subscribers and ARPU (average revenue per user), driven by 5G rollout.

   • Retail Segment: Strong consumer demand, store expansions, and increased footfalls contributed to higher revenues.

3. Digital & New Energy Push:

   • Reliance’s digital initiatives, including AI-backed Jio services and cloud ventures, showed healthy growth.

   • The new energy segment, including green hydrogen and solar, remains in investment mode but reflects promising long-term potential.

Key Financial Highlights (Q1 FY25 vs Q1 FY24):

• Consolidated Net Profit: ₹26,994 crore 78%

• Revenue: ₹2.44 lakh crore 4.5% YoY

• EBITDA: ₹44,678 crore 20%

• Net Debt: Slight increase due to capex in green energy and 5G rollout, but remains under control

Statement from Mukesh Ambani:

“Reliance has delivered an outstanding start to FY25, driven by our unwavering focus on innovation, growth, and value creation. The sale of our stake in Asian Paints reflects our strategy to monetise non-core assets while deepening our commitment to the energy transition and digital transformation of India.”

Segment-Wise Breakdown:

1. Oil-to-Chemicals (O2C):

• Revenue: ₹1.35 lakh crore
• EBITDA Margin: 18%
• Recovery in fuel demand post-summer and higher margins on gasoline and diesel exports helped drive this growth.

2. Retail:

• Revenue: ₹74,020 crore 11% YoY
• Growth driven by strong performance in grocery, fashion, and electronics. Store count crossed 20,000 across India.

3. Digital Services (Jio):

• Revenue: ₹32,310 crore 9%
• Subscriber base: 481 million
• ARPU rose to ₹188 from ₹180 in the previous quarter.

Looking Ahead:

Reliance aims to:

• Scale up its renewable energy projects in Jamnagar and Gujarat.
• Expand Jio AirFiber and 5G network reach to more rural markets.
• Enter deeper into e-commerce, fashion tech, and healthcare retail.

Market Reaction:

Following the Q1 announcement, Reliance shares gained over 3% in early trading on the Bombay Stock Exchange (BSE), reflecting investor optimism on strong earnings and strategic asset monetisation.