West Asia war weighs on RIL results, Q4 profits decline 9%

MUMBAI: Reliance Industries, India’s most valuable company by market capitalisation, posted a 9% fall in quarterly profit on Friday, as surging crude prices driven by the West Asia conflict weighed on its core oil-to-chemicals (O2C) division.

Consolidated net profit fell to Rs 20,589 crore in the March quarter, falling short of analyst forecasts, while revenues rose 13% to Rs 2.98 lakh crore. Ebitda climbed 4% to Rs 48,423 crore, as expenses rose at a faster pace of 15% to Rs 2.75 lakh crore.

Ebitda at the O2C division, which accounted for roughly a third of total operating profit, fell nearly 4% to Rs 14,520 crore in Q4FY26 from a year earlier, reflecting a sharp rise in crude, freight and insurance costs stemming from the West Asia war, as well as disruptions to shipping through the Strait of Hormuz.

“The O2C business navigated a complex global environment... The war in West Asia has led to unprecedented dislocation in global supply chains,” said Mukesh Ambani, chairman and MD of Reliance.

Jio, the company’s digital arm, posted a 16% rise in ebitda to Rs 20,041 crore, driven by steady revenue growth and a 230 basis point expansion in margins. Average revenue per user rose 4% to Rs 214 in the quarter.

Launched in 2016, Jio had 524 million customers as of March 31, 2026, cementing its position as the world’s second-largest telecom operator by subscribers. Data and voice traffic on its network grew 35% and 3% respectively. Ambani said Jio was “advancing steadily towards listing”, without elaborating.

RIL’s retail division posted a 3% rise in ebitda to Rs 6,921 crore amid intensifying competition, even as revenue from operations grew 11%.

The oil and gas division posted an 18% decline in ebitda to Rs 4,195 crore, hurt by lower revenues and higher operating costs from maintenance activity and government levies.

“The breadth of our portfolio and strong domestic orientation helped navigate volatility in the external environment,” Ambani said.

Reliance ended the fourth quarter with net debt of Rs 1.24 lakh crore, against cash and equivalents of Rs 2.49 lakh crore.

For FY26, Reliance’s net profit rose 18% to Rs 95,754 crore, while revenue grew 10% to Rs 10.75 lakh crore.
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