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Reliance Industries Limited (RIL), the Indian multinational conglomerate led by Chairman and Managing Director Mukesh Ambani, announced stellar financial results for the third quarter of fiscal year 2025 (Q3FY25), ending December 2024. The company reported record-breaking profits and EBITDA (earnings before interest, taxes, depreciation, and amortization), driven primarily by exceptional performance in its digital services (Jio Platforms) and retail (Reliance Retail) segments. The robust growth underscores the strength and diversification of RIL's business portfolio, demonstrating resilience even amidst global economic uncertainties. The consolidated net profit reached a staggering Rs 21,930 crore, representing an impressive 11.7 percent year-on-year (YoY) increase compared to Rs 19,641 crore in the same period of the previous fiscal year. This significant jump in profitability reflects the company's strategic initiatives, effective operational efficiencies, and strong market position across its various business verticals. The strong performance was echoed in the consolidated revenue, which climbed 7.7 percent YoY to Rs 2,67,186 crore, with double-digit growth specifically attributed to Jio Platforms, Reliance Retail Ventures, and the oil-to-chemicals (O2C) businesses. The positive trends suggest a sustained growth trajectory for the conglomerate, pointing towards continued market dominance and investor confidence.
A detailed examination of the individual business segments reveals the key drivers behind RIL's overall success. Jio Platforms, the telecommunications arm of RIL, experienced remarkable growth in its profitability, with a 26 percent YoY surge in profit reaching Rs 6,861 crore. This impressive performance was largely fueled by revenue growth of 19.2 percent YoY to Rs 38,750 crore. The revenue increase was primarily attributed to the ongoing positive impact of tariff revisions for mobility services and healthy growth in its home and digital services businesses. The subscriber base continues to expand, with a net addition of 3.3 million subscribers in Q3FY25, bringing the total customer base to 482.1 million. The average revenue per user (ARPU) also demonstrated significant growth, reaching Rs 203.3, reflecting the success of tariff hikes and a favorable subscriber mix. Jio's strategic progress in 5G adoption, with over 170 million subscribers on its True5G network, further underscores its market leadership and technological advancement. The launch of JioAICloud and JioBrain, advanced AI-powered services, signifies the company's commitment to innovation and future-proofing its technological capabilities, paving the way for new revenue streams and enhanced customer engagement.
Reliance Retail, another significant contributor to RIL's overall performance, witnessed a 10 percent YoY growth in profit, reaching Rs 3,458 crore in Q3FY25. The remarkable growth was complemented by an 8.8 percent YoY increase in revenue to Rs 90,333 crore, propelled by strong festive buying and the wedding season. Footfalls increased by 5 percent to over 296 million, and the customer base expanded to 338 million, consolidating its position as a leading retail player in India. The segment's EBITDA (earnings before interest, taxes, depreciation, and amortization) increased by 9.5 percent YoY to Rs 6,828 crore, reflecting improved operational efficiencies and superior store operating metrics. The company opened 779 new stores during the quarter, expanding its total store count to 19,102, showcasing its aggressive expansion strategy and commitment to market penetration. This sustained growth demonstrates the effectiveness of its retail strategy, targeting diverse consumer segments and offering a broad range of products and services. The operational excellence and focus on customer experience are evident in the improved margins and significant revenue growth. Reliance Retail’s success underscores its ability to leverage technology, adapt to evolving consumer preferences, and maintain a strong competitive advantage in the dynamic retail landscape of India.
The O2C (oil-to-chemicals) business also contributed positively to RIL's Q3FY25 results, although with less dramatic growth compared to Jio and Retail. Revenue increased by 6 percent YoY to Rs 1.49 lakh crore, driven by higher production for sale and robust domestic demand. The increase in domestic fuel retailing volumes, with a significant rise in both motor spirit (MS) and high-speed diesel (HSD), further bolstered the segment's revenue growth. Despite some challenges in the global energy markets, the O2C business demonstrated its resilience, with EBITDA showing a 2.4 percent YoY increase to Rs 14,402 crore. This underscores the strategic importance of the O2C segment, its ability to navigate market volatility and leverage operational flexibility to maintain profitability. The overall throughput grew by 8 percent YoY to 20.2 million metric tons (MMT), while production for sale increased by 9.1 percent to 17.9 MMT. The company highlighted efficient feedstock sourcing, higher domestic product placement, and improved polymer deltas as key factors offsetting weak fuel cracks in the global market. The segment's performance highlights RIL’s ability to adapt its operations and optimize its supply chain in response to fluctuating market dynamics.
The oil and gas exploration and production segment experienced a slight decline in revenue and EBITDA compared to the same period in the previous year, primarily due to lower gas and condensate volumes in the KG D6 block and lower realizations for coal bed methane (CBM) gas. Despite this, the segment managed to maintain a level of operational stability. The company noted an increase in CBM gas volumes and a marginal increase in the KGD6 gas price, partially offsetting the negative impact of lower volumes. These results highlight the challenges faced by the oil and gas sector within the global energy market, characterized by volatility in prices and supply chain complexities. While the segment did not experience the robust growth seen in other sectors, it still remains an important part of RIL’s diversified portfolio, offering a degree of stability and diversification to the overall business performance.
RIL’s financial health remains strong. While the outstanding debt increased slightly to Rs 3.5 lakh crore, the company's cash and cash equivalents also increased, resulting in a net debt reduction of Rs 973 crore compared to the previous quarter. The net debt-to-EBITDA ratio improved to 0.6, showcasing strong financial management and a healthy balance sheet. Capital expenditure (excluding spectrum) for the quarter reached Rs 32,259 crore, demonstrating continued investment in infrastructure and growth initiatives across its various business units. This consistent investment, combined with the strong financial performance across all business segments, underlines RIL's strategic vision for continued growth and market leadership. The company's ability to manage its financial resources effectively, while continuing to invest in its future, reinforces its position as a robust and sustainable business enterprise.
Overall, Reliance Industries’ Q3FY25 results demonstrate a remarkable financial performance, driven by robust growth across its diverse business portfolio. The exceptional performance of Jio Platforms and Reliance Retail has significantly contributed to the company's record-breaking profits and EBITDA. Despite some challenges in the oil and gas segment, the overall financial health of RIL remains strong. The company's strategic investments in technology, operational efficiency, and market expansion continue to drive its success, while its financial discipline assures long-term sustainability. The results demonstrate the power of a diversified business model and effective management in navigating global economic uncertainties and achieving sustainable growth. Reliance Industries continues to solidify its position as one of India’s leading and most successful conglomerates, inspiring confidence among investors and setting a benchmark for corporate excellence in India and globally.
Source: Reliance Industries announces record quarterly profit, EBITDA in Q3: Here are 10 key highlights