Reliance Industries Limited — Q3 FY25 earnings call

Call held 16 Jan 2025

Management summary

Reliance Industries Limited reported a strong Q3 FY25, with consolidated revenue, EBITDA, and PAT growing close to 8%, 8%, and 12% year-on-year respectively. Consumer businesses, particularly Jio and Retail, showed robust growth, with Jio's ARPU increasing by 12% and Retail's revenue crossing ₹90,000 crores. The O2C segment demonstrated resilience with a 16% sequential EBITDA growth, driven by higher volumes and domestic demand. The company highlighted strong operational streamlining benefits and strategic investments across its diverse portfolio.

Highlights

  • Consolidated Revenue growth close to 8% YoY

  • Consolidated EBITDA growth close to 8% YoY, and 9% QoQ

  • Consolidated PAT growth close to 12% YoY

  • Jio Platforms operating revenues grew 19.4% YoY to ₹33,074 crores

  • Jio Platforms EBITDA increased 18.8% YoY to ₹16,585 crores

  • Jio Platforms Profit After Tax grew 26% YoY to ₹6,857 crores

  • Jio ARPU at ₹203.3, up 12% YoY

  • Jio added 3.3 million subscribers, reaching a base of 482.1 million

  • Reliance Retail revenue reached ₹90,000 crores, up 9% YoY and 18.4% QoQ

  • Reliance Retail EBITDA grew 9.5% YoY to ₹6,800 crores, with margins expanding to 8.6%

  • O2C segment EBITDA grew 2.4% YoY to ₹14,400 crores, and 16% QoQ, with margins improving 160 basis points to 9.6%

  • E&P EBITDA increased over 5% QoQ to ₹5,565 crores, with margins at 87.4%

What they filed

Q1 FY27: revenue up 27.0%, net profit down 24.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,31,535 2,39,986 2,61,388 2,43,632 2,54,623 +10%2,64,905 +10%2,94,059 +12%3,09,468 +27%
EBITDA39,058 43,789 43,832 42,905 45,885 +17%46,018 +5%44,141 +1%47,517 +11%
Net profit19,323 21,930 22,611 30,783 22,092 +14%22,290 +2%20,589 −9%23,196 −25%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Guidance & targets

Market Share

  • Air Fiber Provider Ranking Market Share · next few months · Medium confidence largest globally
    We're seeing a lot of demand coming from towns and cities beyond the tier 2s. We already are at 4.5 million Jio AirFiber homes connected, and which will be fairly, you know the rate at which we are growing, we should be the largest air fiber service provider globally in the next few months.

    — Sh Anshuman Thakur

Volume

  • Home Connections Volume · Medium confidence 100 million plus
    And we see that this entire greenfield opportunity of connecting 100 million plus homes across India is now getting that additional momentum thanks to AirFiber.

    — Sh Kiran Thomas

  • Bank Branches Connected Volume · eventually · Medium confidence 150,000
    And we believe that there's the potential to get up to 150,000 bank branches across the country that we are well positioned to connect eventually.

    — Sh Kiran Thomas

Revenue

  • Campa & Independence Turnover Revenue · FY25 · High confidence ₹1000 crores (individually)
    Two of our most prominent brands Campa and Independence, they continue to gain traction. Each one of them individually should cross Rs 1000 crores turnover in FY25.

    — Sh Dinesh Taluja

Capacity

  • PVC and CPVC Production Capacity Capacity · High confidence 1.5 million tons
    So, against this, if you see, what are we investing in? And, you know, starting with vinyls, with this 1.5 million tons PVC and CPVC facility at Dahej and Nagothane.

    — Sh V. Srikanth

  • VLEC Fleet Size Capacity · High confidence three more

    Previously six ships → three more

    We currently have six ships, and we are adding three more VLECs.

    — Sh V. Srikanth

  • Specialty Polyester Capacity Capacity · High confidence million tons
    Finally, on the polyester side, with a million tons of specialty polyester capacity, and matched 3 million tons of PTA, will help sustain the growing demand there.

    — Sh V. Srikanth

  • PTA Capacity Capacity · High confidence 3 million tons

    — Sh V. Srikanth

Market context

  • Global PVC/CPVC Producer Ranking Market Share · High confidence top 10 producers

    Previously 22nd player globally → top 10 producers

    And from a size point of view, from the 22nd player globally, in terms of our current capacity, we would become the top 10 producers.

    — Sh V. Srikanth

2 min read

Detailed narrative

Reliance Industries Limited reported a strong operating quarter for Q3 FY25, with consolidated revenue, EBITDA, and PAT growing close to 8%, 8%, and 12% year-on-year, respectively. The company highlighted robust sequential performance, with aggregate EBITDA up 9%, retail EBITDA up 17%, and O2C EBITDA up 16% quarter-on-quarter. This growth was attributed to a strong festive season, improved customer traction, and operational streamlining efforts across businesses. The average revenue per user (ARPU) for Jio increased by 12% to ₹203, driven by tariff hikes and new customer additions, particularly in Fiber-to-the-Home (FTTH).

Jio's digital services continued its strong trajectory, adding 3.3 million subscribers, bringing the total base to 482.1 million. The 5G customer base reached 170 million, contributing nearly 40% of wireless traffic. Jio AirFiber saw significant demand, with 2 million new home connections in the quarter, and is projected to become the largest air fiber service provider globally in the next few months. The company is also expanding its enterprise business, aiming to connect up to 150,000 bank branches and developing AI infrastructure to gigawatt scale, including a JioCloudPC solution for consumers.

Reliance Retail achieved a milestone with ₹90,000 crores in revenue, growing 9% year-on-year and 18.4% quarter-on-quarter. EBITDA for the retail segment was ₹6,800 crores, up 9.5% year-on-year, with margins expanding to 8.6%. The B2C grocery business grew 37% year-on-year, and the fashion and lifestyle segment saw a strong rebound. The company expanded its footprint by opening 779 new stores, bringing the total to 19,100. Consumer brands like Campa and Independence are gaining traction, with each expected to cross ₹1,000 crores in turnover by FY25.

The Oil-to-Chemicals (O2C) segment delivered a resilient performance with EBITDA of ₹14,400 crores, up 2.4% year-on-year and 16% quarter-on-quarter. This was supported by higher volumes (up 9%), favorable feedstock sourcing, and strong domestic demand for fuels and polymers. Gasoline and diesel volumes increased by 44% and 23% respectively. The Exploration & Production (E&P) business maintained a steady performance, with EBITDA of ₹5,565 crores, up over 5% quarter-on-quarter, and strong margins of 87.4%. KGD6 production remained stable at 28.04 mm CMD.

Management expressed a bullish outlook, emphasizing the strength of domestic demand across all segments. Strategic investments in O2C, including a 1.5 million tons PVC/CPVC facility and adding three more VLECs, are expected to enhance cost competitiveness and market position, aiming to become a top 10 global producer. The company's focus on operational efficiency, market expansion, and leveraging technology, including AI, positions it for continued growth, with consumer businesses now accounting for 52% of segment EBITDA.

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