Detailed Narrative
Reliance Industries Limited reported a robust financial performance for Q1 FY26 (April-June 2025). The company's overall revenue increased by 6% year-on-year, with a significant 36% rise in reported EBITDA to ₹58,000 Crores. This EBITDA figure included a gain from the sale of Asian Paints shares; excluding this, recurring EBITDA and PAT still showed strong growth of 15% and 25% respectively.
Jio Platforms continued its impressive trajectory, with operating revenues growing 19% YoY to ₹35,032 Crores. The segment's EBITDA surged 24% YoY to ₹18,135 Crores, and its EBITDA margin expanded by 210 basis points to reach 56%. Net subscriber additions were strong at 9.9 million, bringing the total subscriber base to 498.1 million. The 5G subscriber base also saw substantial growth, adding 20 million users to reach 210 million. Average Revenue Per User (ARPU) for Jio stood at ₹209, and total data consumption increased by 24% YoY to 55 billion GBs.
Reliance Retail demonstrated resilient growth, with revenues up 11% YoY and EBITDA increasing 12.7% YoY, achieving an EBITDA margin of 8.7%. The FMCG business was a standout performer, doubling its revenue YoY to ₹4,400 Crores. The O2C segment also contributed positively, with EBITDA growing 10.8% to ₹14,511 Crores, benefiting from improved fuel cracks and strong domestic market placement.
Management outlined ambitious targets, particularly for the New Energy segment, which is expected to operationalize its entire ecosystem on a full-scale basis within the next four to six quarters. Key initiatives include achieving 55 compressed biogas plants by the end of this year and reducing power costs for captive customers by at least 25%. For Reliance Retail, the company reiterated its vision to double the business every 3 to 4 years, with an expected acceleration in growth as past streamlining efforts conclude. Jio Platforms aims to connect 100 million homes in the near future, leveraging its unique UBR technology.
During the Q&A, analysts probed into the financial translation of Jio's in-house tech stack, Reliance Retail's quick commerce strategy, and the impact of past streamlining on retail performance. Management affirmed the benefits of proprietary technology for faster scaling and cost efficiency, detailed their organic growth approach for quick commerce, and indicated that retail growth is set to accelerate. Risks such as natural decline in KGD6 gas production, crude price volatility, and overcapacity in chemicals were acknowledged, with management highlighting mitigation strategies like diversification and domestic market focus. Seasonal weakness in retail and softening in FMCG ad spend were noted as temporary factors.