The O2C segment has been hit hard by rising costs and supply chain disruptions
MUMBAI: Reliance Industries, India’s most valuable company by market capitalization, reported a 9% decline in its quarterly earnings on Friday, as rising crude oil prices due to conflict in West Asia hit its core oil-to-chemicals (O2C) division.Consolidated net profit fell to Rs 20,589 crore in the March quarter, below analysts’ expectations, while revenue rose 13% to Rs 2.98 lakh crore. EBITDA rose 4% to Rs 48,423 crore and expenses rose at a faster pace of 15% to Rs 2.75 lakh crore.EBITDA in the O2C division, which accounts for nearly a third of total operating profit, fell nearly 4% to Rs 14,520 crore in Q4 FY26 compared to the previous year, reflecting a sharp rise in crude oil, shipping and insurance costs caused by the West Asia war, as well as shipping disruptions through the Strait of Hormuz.“The O2C business has navigated a complex global environment…The war in West Asia has led to unprecedented disruption to global supply chains,” said Mukesh Ambani, Chairman and Managing Director, Reliance.
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Jio, the company’s digital arm, posted a 16% rise in EBITDA to Rs 20,041 crore, driven by steady revenue growth and margin expansion of 230 basis points. 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 in terms of subscribers.
Data and voice traffic on its network grew by 35% and 3%, respectively. Jio is “steadily progressing towards the listing,” Ambani said, 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 recorded an 18% decline in EBITDA to Rs 4,195 crore, impacted by lower revenues and higher operating costs from maintenance activities and government charges.“The breadth of our investment portfolio and strong domestic orientation have helped us weather fluctuations in the external environment,” Ambani said.Reliance ended the fourth quarter with net debt of Rs 1.24 lakh crore, against cash and cash 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.