Reliance profit drops on one-off item as Jio files IPO papers
Reliance Industries reported a 22% drop in first-quarter profit due to a one-time charge, but underlying operating growth of 10% and the filing of Jio Platforms' IPO papers highlight the conglomerate's shifting focus toward digital monetisation.
Reliance Industries posted a 22% year-on-year decline in first-quarter net profit to Rs 20,946 crore, dragged down by a one-time exceptional item. Beneath that headline figure, the Indian conglomerate showed operational strength, with EBITDA rising 10% to Rs 54,067 crore as all business segments delivered double-digit growth. Revenue climbed 25%.
The most significant development for markets was the filing of a draft prospectus by Jio Platforms with the securities regulator. "The upcoming IPO will be an important milestone in Jio’s journey and will give investors an opportunity to participate in India’s digital growth story," said Chairman Mukesh Ambani.
Jio's underlying metrics support the listing narrative. The telecom unit added 8.9 million net subscribers, pushing average revenue per user up to Rs 215.6. EBITDA grew 15% to offset higher finance costs and 5G-related depreciation, while total data traffic surged 27%. "Jio’s performance across mobility, home broadband and enterprise services remained strong, driving healthy earnings growth," Ambani said.
The oil-to-chemicals division provided the bulk of the cash flow, with EBITDA jumping 17% to Rs 17,010 crore. This was driven by high transportation fuel cracks and favourable petrochemical margins, even as Reliance absorbed domestic under-recoveries by holding retail fuel prices and diverting propane to boost LPG output. "The O2C business delivered strong performance," Ambani noted, pointing to record middle distillate cracks.
Reliance Retail's profitability suffered from the company's aggressive push into digital commerce. Profit fell 14% to Rs 2,806 crore as EBITDA margins contracted 80 basis points to 7.9%. Management attributed the squeeze to the rising revenue share of quick-commerce and the fixed costs of expanding infrastructure, even as gross revenue grew 12% on an adjusted basis and daily grocery orders more than doubled.
Capital expenditure reached Rs 38,682 crore during the quarter, funding O2C projects, new energy initiatives and retail expansion. "The start to FY27 gives me reason to be optimistic about the year ahead as the company moves forward with phased commissioning of new energy projects and unlock value through the Jio IPO," Ambani said.
