
Reliance Industries Limited (RIL) has reported a strong performance for Q4 FY25, with its profit after tax rising by 6.4% YoY to ₹22,611 crore.
Despite facing a challenging global business environment marked by weak macro-economic conditions and a volatile geopolitical landscape, RIL’s diversified business model has helped the company maintain solid growth.

What’s Behind the Numbers?
In the quarter, RIL saw a robust 8.8% YoY growth in gross revenue, reaching ₹288,138 crore. However, despite the revenue growth, its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) increased by just 3.6% YoY to ₹48,737 crore.
The EBITDA margin for Q4 FY25 contracted slightly by 90 basis points YoY to 16.9%, reflecting the pressure on margins in some of its key segments.
This mixed performance stems largely from volatility in the global energy markets and challenges in the downstream chemicals sector. In particular, the Oil to Chemicals (O2C) segment was hit by low margins in polyester chains and transportation fuels.
But, thanks to its integrated operations and optimization strategies, RIL has been able to offset some of these headwinds.
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Retail and Digital Services: A Consistent Growth Engine
Despite tough global conditions, RIL’s retail segment has remained a major contributor to its growth story. In Q4, Reliance Retail’s revenue grew by 15.7% YoY, reaching ₹88,620 crore.
This growth was driven by new store openings and an expanded product catalog, which helped increase customer engagement. The company also saw a significant rise in online sales, particularly through JioMart, which has continued to scale up as a platform offering hyper-local deliveries and a wide range of products.
This strong performance has placed RIL in a prime position to capture long-term growth in the retail sector.
Jio Platforms, another key part of RIL’s digital services, reported impressive results. Its quarterly revenue surged by 17.8% YoY to ₹39,853 crore, with EBITDA rising 18.5% YoY to ₹17,016 crore. The company’s subscriber base now exceeds 488 million, with 191 million of them using 5G services.
This continued growth is supported by the strong adoption of Jio’s 5G and home broadband services, along with a steady increase in the average revenue per user (ARPU), which improved to ₹206.2 in Q4 FY25.
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The O2C Segment: Resilience Despite Market Pressures
The Oil to Chemicals (O2C) segment remains a critical part of RIL’s operations, even as it faces pricing and margin pressures.
In Q4, segment revenue grew 15.4% YoY to ₹164,613 crore, driven by higher volumes and increased domestic product placement. However, the O2C EBITDA fell by 10% YoY to ₹15,080 crore, as transportation fuel cracks and polyester margins dipped. Nonetheless, RIL’s ability to optimize feedstock costs and increase volume helped cushion the impact on overall margins.
Challenges in the Oil and Gas Sector
RIL’s Oil and Gas (Exploration and Production) segment saw a slight decline in revenue in Q4, down 0.4% YoY to ₹6,440 crore. This was mainly due to lower gas production and a decrease in oil offtake from the KGD6 block. The company did see improved gas price realization for KGD6, which partially offset the lower volumes.
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Looking Ahead: Investments in the Future
Mukesh Ambani, RIL’s chairman, highlighted the company’s ongoing investments in renewable energy and battery operations, which are expected to bear fruit in the coming quarters. These initiatives are set to transform RIL’s energy strategy, with a focus on green hydrogen and ammonia manufacturing in the Kandla region of Gujarat. This forward-thinking approach positions RIL as a key player in India’s energy transition.
A Balanced Approach to Growth
RIL’s Q4 performance illustrates its ability to navigate both the opportunities and challenges in the global market.
While some segments faced pressure, others, particularly retail and digital services, continued to drive growth. The company’s diversified business model, strategic investments, and focus on innovation ensure it remains well-positioned for the future.
Disclaimer
The views in this article are the author’s and are not financial, investment, or professional advice. This content is for informational purposes only. Readers should consult a qualified advisor before making any financial decisions.