Fluctuating tariffs, global strains curbed energy demand, says RIL

Firm identifies quartet of risks to watch through FY26 in its annual report

Reliance Industries Ltd (RIL), the oil-to-retail conglomerate, on Thursday said geopolitical tensions and policy uncertainty, especially fluctuating trade tariffs, have injected volatility into global markets, curbed energy demand, and squeezed both prices and margins.

 

In its financial year 2024-25 (FY25) annual report, the company identified a quartet of risks to watch through the rest of FY26: sluggish demand growth in China amid rising electric vehicle (EV) penetration; the pace of aviation recovery in Asia; persistent geopolitical instability; and shifts in economic policy, including tariffs and sanctions.

 

"Global economic growth remained healthy at 3.3 per cent in CY24 (calendar year 2024) consistent with the prior year. Global inflation eased to 5.7 per cent in CY24 from 6.7 per cent in CY23, supported by the stabilisation of supply chains post-Covid and a moderation in commodity prices. This enabled major central banks to ease monetary policy, lowering benchmark rates by 50-100 basis points (bps) in CY24. However, geopolitical tension and policy uncertainties, including trade tariffs, led to volatility in global markets, adversely impacting energy demand, resulting in softer prices and narrower margins. Transportation fuel margins moderated from elevated levels, and downstream chemicals margins came under significant pressure due to incremental supply additions, particularly from China," RIL said.

 

 

As the Indian economy remains robust, the company is laying the groundwork for “high-growth” platforms — retail, digital services, media & entertainment, and new energy — said the conglomerate’s Chairman Mukesh Ambani in a message to shareholders.

 

“These platforms are positioned to disrupt traditional industries while creating long-term value for both Indian consumers and global markets," he said in the group’s annual report released ahead of the 48th annual general meeting (AGM) of shareholders. 

 

“As Reliance approaches its golden jubilee, we are creating high-powered engines of growth that are technology-first and innovation-led,” he said.

 

The conglomerate will continue investing in its core oil-to-chemicals and upstream oil and gas businesses to meet India’s domestic demands. The company is focused on sectors that align with sustainability, digital inclusion, and consumer empowerment.

 

“Whether it’s transforming how Indians shop, consume data, watch content, or power their homes and businesses, Reliance is shaping the future with purpose and conviction,” Ambani said.

 

He emphasised that the company’s strategy is rooted in a strong foundation of values, a disciplined balance sheet, and a deep talent pool. “Our people bring ingenuity and passion to everything they do, and our board, partners and shareholders continue to place their trust in our long-term vision,” the RIL chairman said.

 

Expressing gratitude to shareholders, Ambani said their belief in Reliance gives the group the courage to push boundaries and pursue bold ambitions. “The journey ahead is full of promise. With unwavering faith in India and a steadfast commitment to innovation, sustainability and inclusion, Reliance is poised to rise to even greater heights,” he said.

 

Reliance, India’s most valuable company by market capitalisation, has been rapidly diversifying beyond its traditional businesses under Ambani’s leadership, investing heavily in green energy, digital infrastructure, and consumer platforms.