Reliance Industries Ltd (RIL) reported a record quarterly profit of Rs 29,550 crore for July–September, marking a 33.8% increase compared with the corresponding period last year. Strong earnings from its oil-to-chemicals (O2C) business, supported by higher global fuel margins, drove the growth. Meanwhile, expansion in its telecom business further strengthened the company’s performance, partly offsetting relatively subdued earnings from retail operations. The sharp recovery in the O2C segment emerged as the primary growth driver, as higher transportation fuel cracks and improving petrochemical margins boosted profitability.
Oil-to-Chemicals Business Drives Profit Growth
Reliance’s O2C business, which includes its oil refineries and petrochemical facilities, recorded a 67.9% increase in EBITDA to Rs 25,203 crore. Revenue from the segment also rose 44.2% to Rs 2,31,601 crore. The strong performance came despite operational and supply-chain challenges arising from disruptions in West Asia, higher crude premiums and increased freight costs. However, Reliance leveraged its diversified crude sourcing strategy and optimised product placement to capture stronger refining and petrochemical margins. The company also reported record crude processing volumes during the quarter. By shifting crude procurement towards suppliers in the Americas and the Mediterranean, Reliance strengthened supply flexibility and maintained high refinery utilisation.
Higher Costs Partly Offset Strong Refining Margins
Despite the improvement in O2C profitability, several cost pressures affected the segment’s overall performance. Higher crude premiums, elevated freight and insurance expenses, costs associated with the Special Additional Excise Duty (SAED), and under-recoveries in domestic fuel retail operations weighed on earnings.
Nevertheless, Reliance mitigated some of these challenges by redirecting exports towards markets offering better net realisations. This strategy, combined with flexible crude sourcing and optimised refinery operations, helped the company capitalise on favourable global market conditions.
Digital Services Support Overall Performance
Beyond its core energy operations, Reliance’s digital services business also contributed to quarterly earnings growth. However, relatively subdued performance in the retail segment partially offset the gains from its energy and telecom businesses. As reported by psuwatch.com, the latest results highlight the importance of Reliance’s diversified business portfolio, with its O2C operations benefiting from favourable global refining conditions while digital services continued to provide additional earnings support.
