Reliance Industries Ltd (RIL) is set for a strong show in the June quarter. The RIL Q1 preview looks bright with gains across its main businesses—oil-to-chemicals (O2C), Jio, and retail.
As per analysts, the company may post a 40% jump in net profit, reaching ₹21,233 crore, up from ₹15,138 crore a year ago. Revenue is expected to touch ₹2.46 lakh crore, a 6% rise. EBITDA could climb 16% year-on-year to nearly ₹45,000 crore.
Let’s break down what’s powering this boost.
O2C Set for a Turnaround
Reliance’s O2C segment, which was facing a rough patch last year, is now showing signs of recovery. Analysts expect EBITDA in this segment to rise 17.7%. A small bump in gross refining margins (GRMs) of $0.4 per barrel helped. Petrochemical margins are also improving, though a refinery shutdown may limit how much the segment gains.
Jio Adds Millions of Users
The digital business, mainly Jio, continues to grow. Around 10.5 million new mobile users joined Jio this quarter, compared to 6.1 million last time. Total mobile users now stand at about 477.5 million. Fixed broadband saw good traction too, especially with 5G fixed wireless access (FWA).
ARPU (average revenue per user) went up slightly. As a result, digital revenue and EBITDA are both expected to grow over 2% quarter-on-quarter. However, profit in this segment may only rise by 0.5%, due to high 5G-related costs.
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Retail Continues Its Momentum
The retail arm of Reliance is holding strong. Revenue here is set to rise 20.8% year-on-year to ₹91,380 crore. EBITDA is expected to grow 19%, with margins steady at 7.6%. Better revenue per square foot is a big factor behind the strong numbers.
Oil & Gas Faces Pressure
The only weak spot? The oil and gas (O&G) segment. It may see a 10% drop in EBITDA compared to last year. Lower production from the KG-D6 block is the main reason.
What’s Next for Investors?
Everyone’s eye is on Reliance’s massive ₹75,000 crore investment in the green energy space. Plus, telecom pricing and the speed of retail expansion will be key watchpoints.
Reliance is more than ready for the future—with Jio, retail, and O2C firing together. This quarter could be a strong signal that India’s biggest company is gearing up for its next big leap.
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