Reliance Industries Ltd. saw its stock soar nearly 4% on Monday, following the announcement of a 2.4% increase in its net profit for the March quarter. The company’s diversified portfolio, including telecom, retail, and oil-to-chemicals, showed resilience despite challenges in the petrochemical sector. The telecom business, driven by a growing subscriber base, and retail performance improvements, helped offset weakness in the oil and petrochemicals division. Additionally, Reliance reached a significant milestone, becoming the first company to surpass a net worth of Rs 10 lakh crore in the current fiscal year.
Strong Q4 Performance Amid Mixed Business Segments
Reliance Industries Ltd., one of India's largest conglomerates, reported a solid 2.4% growth in its net profit for the fourth quarter of fiscal year 2024-25. The company’s consolidated net profit for the quarter stood at Rs 19,407 crore (Rs 14.34 per share), up from Rs 18,951 crore (Rs 14 per share) in the corresponding period the previous year. This result exceeded market expectations, reinforcing investor confidence and propelling Reliance’s stock to a near 4% increase in early Monday trading. The company’s stock surged by 3.60% to Rs 1,346.90 on the Bombay Stock Exchange (BSE) and by 3.58% to Rs 1,347 on the National Stock Exchange (NSE).
The robust quarterly performance was largely driven by a combination of improved margins in the telecom business, strategic rationalization of retail operations, and overall growth in subscriber numbers for Jio, the company’s telecom arm. Despite challenges in its oil and petrochemicals (O2C) division, particularly in the face of volatile fuel prices and weaker margins in the polyester chain, Reliance Industries continued to perform strongly across its other sectors.
Jio Platforms Drives Telecom Growth
Jio Platforms Ltd., the unit responsible for Reliance's telecom and digital services, demonstrated remarkable growth during the quarter. Profits surged 26% to Rs 7,022 crore, with a 22% year-over-year increase in full-year profits, bringing its annual net income to Rs 26,120 crore. This growth in telecom profits was primarily driven by an expanding subscriber base, higher data consumption, and improved service offerings. The company’s continued investments in infrastructure, content, and digital services positioned it well for future growth.
Moreover, Jio’s growing contribution to the overall business highlights the shifting focus of Reliance towards becoming a major player in both digital services and telecom, complementing its long-standing oil and petrochemicals business. As India's largest telecom operator, Jio is poised to capture more market share, particularly in the burgeoning 5G sector, which promises to further drive revenues in the coming quarters.
Retail Segment Gains Momentum
Reliance’s retail business also showed positive momentum in the fourth quarter. The company has been strategically rationalizing its store network and focusing on faster, more efficient delivery models in its retail operations. This rationalization, coupled with the rise of quick commerce—where goods are delivered swiftly to consumers—has led to improved financial metrics. Retail sales have remained resilient even as the company streamlined operations, and this has significantly contributed to the overall quarterly earnings.
The retail segment’s performance underlines the diversification of Reliance’s business model, which has been increasingly focused on consumer-driven growth. Reliance Retail’s foray into e-commerce and expansion in the grocery and apparel segments gives it a solid foundation to capitalize on India's growing consumer base.
O2C Business Faces Headwinds
While Reliance's diversified business segments showed growth, the company faced challenges in its oil-to-chemicals (O2C) segment, which has traditionally been a significant revenue driver. Pre-tax earnings from the O2C division declined, primarily due to lower fuel cracks and weaker margins in the polyester chain. These factors have been influenced by fluctuations in global crude oil prices and the ongoing softness in demand for petrochemical products.
Despite these setbacks, Reliance’s overall performance remained strong, thanks to the resilience of its other business units. However, the company’s ability to navigate the volatility in global commodity markets remains a key factor for future performance, particularly as global supply chains continue to adjust post-pandemic.
Financial Health and Debt Levels
Reliance Industries' financial health remains robust, with the company reporting a profit before tax (EBITDA) of Rs 48,737 crore, reflecting a 3.6% increase compared to the same period last year. However, its finance costs saw a near 7% increase due to rising debt levels. As of March 31, 2025, Reliance's total debt stood at Rs 3.47 lakh crore, up from Rs 3.24 lakh crore a year ago. While the increase in debt is notable, it is important to recognize that the company’s diverse business operations and strong cash flow generation capabilities enable it to manage this debt effectively.
Milestone Achieved: Reliance Surpasses Rs 10 Lakh Crore Net Worth
In a significant milestone, Reliance Industries became the first company to reach a net worth exceeding Rs 10 lakh crore during the 2024-25 fiscal year. This achievement follows the company’s historic market capitalization surpassing Rs 20 lakh crore last year, solidifying its position as one of the most valuable companies in India. The company’s diversified portfolio of businesses—spanning energy, retail, telecom, and digital services—continues to provide it with the resilience needed to navigate market fluctuations and geopolitical uncertainties.
Stock Performance and Market Outlook
Reliance’s strong earnings report and its positive outlook for future growth led to a sharp rise in its stock price. The BSE Sensex rose 778.49 points to 79,991.02, while the Nifty gained 219.45 points, reaching 24,258.80. Reliance emerged as the biggest gainer among Sensex and Nifty constituents, reflecting its significant role in driving overall market performance.
Foreign Institutional Investors (FIIs) remain bullish on Reliance, with substantial buying activity being reported in recent weeks. The company’s ability to navigate diverse market conditions, coupled with its strategic focus on high-growth sectors like telecom and retail, makes it an attractive investment for long-term growth.
Conclusion: A Bright Future for Reliance
Reliance Industries continues to showcase its ability to adapt to changing market dynamics while maintaining strong financial performance across multiple sectors. The company’s leadership in telecom and retail, combined with strategic efforts to optimize its oil-to-chemicals business, positions it well for continued growth. Despite challenges in the global commodities market, Reliance's diversified portfolio and focus on innovation ensure its competitive edge in India and globally. As the company moves forward, investors will be watching closely for further advancements in its digital transformation and its ability to manage rising debt levels.
With a market capitalization of over Rs 20 lakh crore and a net worth exceeding Rs 10 lakh crore, Reliance Industries is undeniably one of the most influential players in the Indian corporate landscape. Its ongoing success underscores the strength and potential of India’s corporate sector as it continues to evolve in a rapidly changing global economy.
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