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    Reliance Industries Limited

    RELIANCE
    Oil, Gas & Consumable Fuels·25 Apr 2025
    Management Summary

    Reliance Industries Limited reported a strong Q4 FY25, driven by robust performance in its consumer-facing businesses, Jio Platforms and Reliance Retail. Jio Platforms saw significant growth in subscribers, ARPU, and data consumption, with 191 million 5G users. Reliance Retail delivered double-digit growth in revenue, EBITDA, and PAT, benefiting from quick commerce expansion and strong consumer brands. While the O2C segment faced margin pressures, the company's New Energy initiatives are progressing rapidly with commissioning of solar module capacity and plans for battery manufacturing.

    Highlights

    8

    • Jio Platforms Q4 revenue at ₹33,986 crore, up ~18% YoY, with EBITDA at ₹17,000 crore and PAT up 26% to ₹7,023 crore.

    • Jio Platforms total subscriber base reached 488.2 million, adding 6.1 million net subscribers in Q4 FY25.

    • Jio Platforms ARPU increased to ₹206.2, and data traffic grew 20% YoY to 49 exabytes.

    • Reliance Retail Q4 revenue grew 16% YoY, EBITDA up 14% YoY, and PAT up 30% YoY.

    • Reliance Retail full year EBITDA crossed ₹25,000 crore, and PAT reached ₹12,400 crore.

    • JioStar reported 280 million paid subscribers and a world record 61 million live concurrency, with revenue of ₹9,497 crore and EBITDA of ₹266 crore since launch.

    • Oil & Gas business maintained healthy EBITDA margins at 84%, with KGD6 production up 4% and CBM production significantly augmented.

    • O2C segment EBITDA was lower by 12% due to weak margins, but India's gasoline demand was up 7.5%, ATF up 9%, and polymer/polyester demand up 5%.

    Guidance & targets

    18
    CategoryTargetPriority
    Connectivity
    Homes Connected (Fixed Wireless)
    100 million homes
    		Medium
    Connectivity
    AirFiber Speed
    1 Gbps
    		High
    Oil & Gas Production
    KGD6 Production
    28 million standard cubic metres
    		High
    Oil & Gas Production
    CBM Production
    Increased production
    		High
    Petrochemicals Expansion
    Polyester Expansion Capacity
    1 million tonne
    		High
    Petrochemicals Expansion
    PTA Facility Capacity
    3 million tonne
    		High
    Petrochemicals Expansion
    PVC Expansion Capacity
    More than 1.25 million tonnes
    		High
    Petrochemicals Expansion
    PVC Expansion Contribution to EBITDA
    Contribution to EBITDA
    		High
    New Energy - Solar
    Solar Manufacturing Capacity
    10 gigawatt per annum
    		High
    New Energy - Solar
    Solar Manufacturing Capacity (Upside)
    20 gigawatts
    		High
    New Energy - Battery
    Battery Manufacturing Capacity
    30 gigawatts
    		High
    New Energy - Solar Generation
    Meaningful Solar Power Generation
    Meaningful generation
    		Medium
    New Energy - CBG
    CBG Plants Operational
    55 plants
    		High
    New Energy - Battery Manufacturing
    Battery Cell Assembly
    Start seeing container, pack, and then cell
    		High
    New Energy - Battery Manufacturing
    LFP Battery Manufacturing Start
    Start seeing manufacturing
    		High
    New Energy - Solar Manufacturing
    Solar Factories Commissioning
    All factories commissioned and producing
    		High
    Petrochemicals
    Ethane Sourcing Mix (New Ships Delivery)
    Three new ships
    		High
    Petrochemicals
    Caustic Surplus Management
    Export some caustic
    		High
    2 min read

    Detailed Narrative

    Reliance Industries Limited concluded Q4 FY25 with a strong performance, particularly in its consumer-facing segments. Jio Platforms reported Q4 revenues of ₹33,986 crore, an increase of approximately 18% year-on-year, with EBITDA reaching ₹17,000 crore and profit after tax growing 26% to ₹7,023 crore. The segment's total subscriber base expanded to 488.2 million, adding 6.1 million net subscribers during the quarter, and ARPU improved to ₹206.2. Data consumption continued its upward trend, with traffic growing 20% year-on-year to 49 exabytes, and 5G now accounts for 45% of total wireless traffic, with 191 million 5G subscribers. Management highlighted the success of fixed wireless (AirFiber) deployment, aiming to connect 100 million homes, and progress in digital service revenues for enterprises.

    Reliance Retail also delivered robust results, with Q4 revenue up 16% year-on-year, EBITDA up 14% year-on-year, and PAT increasing 30% year-on-year. For the full fiscal year, the retail segment's EBITDA surpassed ₹25,000 crore, and PAT reached ₹12,400 crore. Key drivers included a 2.4x quarter-on-quarter growth in quick commerce orders, strong performance of consumer brands with sales of ₹11,450 crore, and the opening of 2,659 new stores, resulting in a net addition of 500 stores after streamlining. The company also launched SHEIN commercially, with plans for significant scale-up this year. JioStar, the newly merged media and entertainment entity, reported 280 million paid subscribers and achieved a world record of 61 million live concurrency, generating ₹9,497 crore in revenue and ₹266 crore in EBITDA since its launch in November.

    The Oil & Gas business maintained healthy EBITDA margins of 84%, benefiting from a 4% increase in KGD6 production and augmented CBM production from multilateral wells. The company is ramping up KGD6 production to 28 million standard cubic meters and has commenced the second campaign for CBM. The O2C segment, however, experienced a 12% decline in EBITDA due to weaker cracks in transportation fuel (down 36-41%) and polymer/polyester (down 2-13%), primarily driven by China's capacity and soft demand. Despite global headwinds🌐, domestic demand for gasoline (up 7.5%), ATF (up 9%), and polymer/polyester (up 5%) provided some offset.

    Strategic initiatives in New Energy are progressing rapidly. The company has commissioned its first gigawatt-scale solar module line, part of a 10 gigawatt per annum manufacturing capacity with potential to scale to 20 gigawatts. Battery manufacturing, targeting 30 gigawatts of capacity, is also underway, with LFP battery cell assembly expected to begin within a quarter or two. Polyester expansion (1 million tonne) and a 3 million tonne PTA facility are planned, with benefits expected by FY28. The PVC expansion project has been revised upwards to over 1.25 million tonnes, with contributions to EBITDA anticipated in 2027-2028. Management expressed confidence in India's robust demand and the long-term potential of its integrated new energy ecosystem, despite some evasiveness on specific financial timelines for hydrogen.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.