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Reliance Industries Ltd (RIL) on Friday reported a better than expected 78.3 per cent year-on-year (Y-o-Y) growth rate in net profit during April-June 2025 (Q1FY26), which was largely due to a one-time gain from its stake sale in Asian Paints.
The oil-to-retail-to-telecom conglomerate earned ₹8,924 crore from selling its 4.9 per cent in the paints major.
RIL’s consolidated net sales were, however, slightly below expectations and were up just 5.1 per cent Y-o-Y and down 6.8 per cent quarter-on-quarter (Q-o-Q).
The slower growth in revenue was largely due to a Y-o-Y contraction in its oil-to-chemicals and oil & gas business.
In comparison, both Jio Platform and Reliance Retail reported double-digit Y-o-Y growth in net sales during the quarter.
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In an investor presentation, Reliance Retail Ventures Limited (RRVL) said that Reliance Consumer Products — the fast-moving consumer goods business — is being demerged from RRVL to build a focused organisation and house all consumer brands portfolio. The presentation said that the demerger scheme had been filed and was effective from April 1.
The company’s consolidated net profit jumped to a record high of ₹26,994 crore in Q1FY26 from ₹15,138 crore in Q1FY25 and ₹19,407 crore during the March 2024-25 quarter.
As a result, the company’s consolidated profit before tax (PBT) was up 59.9 per cent Y-o-Y to ₹37,146 crore from ₹23,234 crore a year ago.
However, excluding the gains from other income including profits from the stake sale in Asian Paints, the company’s consolidated PBT was up by a more modest 14.4 per cent Y-o-Y to ₹22,027 crore in Q1FY26 and it was down 9 per cent Q-o-Q from ₹24,198 crore in Q4FY25.
The company’s consolidated operating profit, or profit before interest, depreciation and tax (PBIDT), was up 35.7 per cent Y-o-Y to ₹58,024 crore in Q1FY26 from ₹42,748 crore a year ago and ₹48,737 crore in Q4FY25.
However, excluding other income, PBIDT was up 10.7 per cent Y-o-Y to ₹42,905 crore in Q1FY26 from ₹38,765 crore in Q1FY25 and ₹43,832 crore in Q4FY25.
The company’s other income (including gains from sales of listed investments) was up 279.6 per cent Y-o-Y to ₹15,119 crore in Q1FY26 from ₹3,883 crore in Q1FY25 and ₹4,905 crore in Q4FY25.
This will be the slowest revenue growth for the company in the last three quarters. With this, the company’s consolidated net sales grew in single digits or have declined Y-o-Y in seven of the last 10 quarters starting March 2023. This is largely attributed to low crude oil prices, which have adversely affected the sales realisation of output (per unit) at its oil to chemicals (O2C) business.
The O2C business, which accounted for around 57 per cent of the company’s consolidated gross sales, reported a 1.5 per cent Y-o-Y decline in revenue during the first quarter while its revenues were down 6 per cent Y-o-Y in the quarter.
This may disappoint investors which expected high double-digit growth in RIL’s core net profit in Q1FY26. According to various brokerage estimates, the company was expected to report a consolidated net profit of ₹19,824 crore in Q1FY26, up 31 per cent Y-o-Y. The company’s consolidated net sales were expected to grow 5.6 per cent Y-o-Y to around ₹2.46 trillion in Q1FY26.
The company however continues to scale up its fast-growing telecom, internet, retail and entertainment & media businesses. All these outperformed their oil refining, petrochemicals, oil & gas exploration, and production businesses. This is likely to be cheered by equity investors.
Net sales of the company’s telecom and digital business, housed under Jio Platform, were up 19 per cent Y-o-Y to ₹35,032 crore in Q1FY26 from ₹29,449 crore in Q1FY25 and ₹33,986 crore in Q4FY25.
Division net profit was up 24.8 per cent Y-o-Y to ₹7,110 crore from ₹5,693 crore a year earlier.
Net sales of its retail venture were up 11.3 per cent Y-o-Y to ₹73,720 crore in Q1FY26 from ₹66,260 crore a year before. Division net profit was up 33.2 per cent Y-o-Y to ₹3,267 crore in Q1FY26 from ₹2,453 crore a year before.
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