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    Reliance Industr

    RELIANCE
    Oil, Gas & Consumable Fuels·24 Apr 2026
    Management Summary

    Reliance Industries Limited reported a strong FY26 with double-digit growth in revenue and EBITDA, primarily driven by robust performance in Jio Platforms and Retail. However, Q4 saw flat consolidated EBITDA due to challenges in the O2C segment, impacted by geopolitical events, elevated feedstock prices, and the introduction of SAED. The company continues to advance its New Energy initiatives and manage E&P production declines.

    Highlights

    5
    • FY26 Revenue increased by 10% and EBITDA by 13.5% for the full year, including a one-time gain from listed shares sale.

    • Jio Platforms reported FY26 Revenue of Rs.1,46,085 Crores (up 14.6% YoY) and EBITDA of Rs.76,255 Crores (up 19% YoY), with EBITDA margin at 52%.

    • Retail achieved its highest-ever Q4 revenue of Rs.98,000 Crores, marking an 11% YoY growth (14% adjusted for RCPL demerger), and Q4 EBITDA of Rs.6,900 Crores.

    • FMCG business delivered FY26 revenue of Rs.22,000 Crores, with Q4 revenue at Rs.7,350 Crores, representing two times growth over the similar period last year.

    • New Energy signed a significant green ammonia supply contract with Samsung C&T, demonstrating confidence in its integrated green energy ecosystem.

    Concerns

    5
    • Rupee depreciation was an area of concern, with an 11% depreciation for the year and 4% just in March.

    • Overall RIL Q4 EBITDA growth was flat, with Oil-to-Chemicals (O2C) EBITDA down 4% due to a difficult operating environment.

    • The supply shock and its impact on industry and consumer confidence, coupled with geopolitical issues, remain immediate concerns.

    • Naphtha cracking margins were under severe stress due to elevated feedstock prices, impacting the petrochemical segment.

    • E&P EBITDA margins were slightly lower due to higher operating costs and production decline in KG-D6.

    Segment breakdown

    Overall RIL (FY26)
    10% Revenue Growth13.5% EBITDA Growth24% PAT Growth (Standalone)
    Overall RIL (Q4 FY26)
    0% EBITDA Growth
    Consumer Business (Jio + Retail) (Q4 FY26)
    14.0% EBITDA Growth
    Oil-to-Chemicals (O2C) (Q4 FY26)
    -4% EBITDA Growth
    Jio Platforms (Q4 FY26)
    ₹33,381 Cr Revenue₹18,771 Cr EBITDA56.2% EBITDA Margin₹7,935 Cr PAT
    Jio Platforms (FY26)
    ₹1.5L Cr Revenue₹76,255 Cr EBITDA52% EBITDA Margin₹30,000 Cr PAT
    Retail (Q4 FY26)
    ₹98,000 Cr Revenue14.0% Revenue Growth (adjusted)₹6,900 Cr EBITDA7.9% EBITDA Margin₹3,500 Cr PAT
    Retail (FY26)
    12% Revenue Growth
    FMCG (FY26)
    ₹22,000 Cr Revenue
    FMCG (Q4 FY26)
    ₹7,350 Cr Revenue
    List

    Capital allocation

    4
    high confidence
    CategoryHeadline
    Capex

    Capex disclosed

    Debt

    Debt disclosed

    M&A

    Goodness Group

    acquisition · closed

    M&A

    Manna

    acquisition · closed

    Guidance & targets

    6
    CategoryTargetPriority
    Market Share
    Jio Platforms Market Share
    gain more market share
    Medium
    Growth
    Digital Services Growth
    grow faster
    Medium
    ARPU
    ARPU Increase
    some increase (4% to 5%)
    Medium
    Retail
    Store Footprint & Productivity
    continue to increase
    Medium
    New Energy
    Giga Factories Commissioning
    start commissioning
    High
    O2C
    SAED Revocation
    likely to get revoked
    Medium

    SAED Revocation

    next quarter
    CurrentIntroduced March 27, 2026, impacting DTA refinery
    TargetRevoked in the second quarter

    Why it matters

    Revocation of SAED would improve O2C segment profitability by removing a drag on margins.

    Sh Amit Chaturvedi: "Exemption from customs duty on key petrochemical products... is likely to get revoked in the second quarter hopefully."

    How to verify

    guidance_and_targets[category='O2C'][metric='SAED Revocation']

    Risks & concerns

    6
    RiskSeverity

    Rupee Depreciation

    Rupee depreciated 11% for the year and 4% in March, posing a concern due to widening gaps.Management acknowledged

    high

    Geopolitical Supply Shock & Consumer Confidence

    Supply shock and its impact on industry and consumer confidence, particularly from the Middle East conflict, are significant concerns.Management acknowledged

    high

    Elevated Feedstock Prices & Naphtha Cracking Margins

    Polymer deltas were weaker due to very elevated feedstock prices, leading to severe stress on naphtha cracking margins.Management acknowledged

    high

    SAED Introduction

    The reintroduction of SAED, effective March 27, 2026, impacts the DTA refinery, primarily affecting diesel.Management acknowledged

    medium

    Production Decline in KG-D6

    There is a consistent production decline in KG-D6, though efforts are being made to stabilize and augment production.Management acknowledged

    medium

    LNG Price Volatility & Qatar Field Impact

    LNG prices are volatile, and the impact of the war on the Qatar field (Ras Laffan) affecting 70% of capacity implies a long recovery time (5 years).Management acknowledged

    high

    Q&A highlights

    8

    “So Venezuelan crude typically tends to be very heavy. It is a very heavy oil, and US of course is lighter crude... we blend the light, medium, heavy and then process it. So, we do not see that as a constraint because Russia is very much like a lookalike to the Middle Eastern crudes.”

    Analyst questioned the impact of relying on alternate crudes (US, Venezuela) with different chemical compositions on distillate yield, and management clarified their blending capabilities.

    asked by Probal Sen, ICICI Securities

    3 min read7 chapters

    Detailed Narrative

    01

    Group Performance Overview

    Reliance Industries Limited reported a robust full year FY26, with revenue increasing by 10% and EBITDA by 13.5%, including a one-time📎 gain from the sale of listed shares. Consumer businesses, comprising Jio and Retail, contributed over 55% of the total EBITDA. While overall Q4 EBITDA growth was flat, the consumer segment demonstrated strong performance, growing 14%, which helped negate a 4% decline in the Oil-to-Chemicals (O2C) segment.

    02

    Jio Platforms Sustains Strong Growth

    Jio Platforms continued its impressive trajectory, ending FY26 with 524 million subscribers, adding 36.3 million during the year. The 5G user base grew by 77 million to 268 million, making it the largest outside of China. For FY26, Jio Platforms reported revenue of Rs.1,46,085 Crores, up 14.6% YoY, and EBITDA of Rs.76,255 Crores, up 19% YoY, achieving an EBITDA margin of 52%. Q4 revenue stood at Rs.33,381 Crores with EBITDA of Rs.18,771 Crores and PAT of Rs.7,935 Crores, growing 13% YoY.

    03

    Retail Business Achieves Record Revenues

    Reliance Retail delivered its highest-ever quarterly revenue in Q4 FY26, reaching Rs.98,000 Crores. This represents an 11% YoY growth for the full quarter, or nearly 14% when adjusted for the RCPL demerger. Q4 EBITDA was Rs.6,900 Crores, with a margin of 7.9%, and PAT reached Rs.3,500 Crores. The business expanded its footprint, crossing 20,000 stores with 333 new additions during the quarter, and saw significant growth in hyperlocal e-commerce, with average daily orders up 30% QoQ and 300% YoY.

    04

    FMCG Business Expands Rapidly

    The FMCG business closed FY26 with a revenue of Rs.22,000 Crores, and Q4 revenue alone was Rs.7,350 Crores, marking a two-fold growth YoY. The Campa brand achieved Rs.4,700 Crores in revenue, becoming the fourth-largest carbonated soft drink brand. The Independence brand delivered Rs.2,600 Crores for the year. The package drinking water business is now the third-largest player in the country. The company also expanded its international presence to 40 countries and made strategic acquisitions of Goodness Group and Manna to bolster its portfolio.

    05

    O2C Segment Navigates Geopolitical Headwinds

    The O2C segment faced a challenging quarter, with EBITDA declining 4% QoQ. Geopolitical tensions, particularly the Middle East conflict and the Strait of Hormuz blockage, led to supply shocks, skyrocketing freight and insurance costs, and elevated crude premiums (up to $20-30/barrel). Naphtha cracking margins were under severe stress due to high feedstock prices. The introduction of SAED (Special Additional Excise Duty) on March 27, 2026, further impacted the DTA refinery, primarily affecting diesel.

    06

    New Energy Project Execution Accelerates

    Reliance's New Energy initiatives are progressing rapidly. The company signed a major green ammonia supply contract with Samsung C&T, validating its integrated green energy ecosystem. Land development and EPC work for transmission lines and the green chemicals complex at Jamnagar are underway. Commissioning of solar and battery factories, aiming for 20 gigawatt integrated capacity, is on track, with the first phase of 40-gigawatt BESS manufacturing also advancing.

    07

    Exploration & Production Update

    The E&P segment saw production remain relatively steady, with a decline managed to 8% against an envisaged 12-14%. However, EBITDA margins were slightly lower due to increased operating costs. Production in the CBM field continued to grow. The government's reallocation of KG-D6 gas to city gas distribution and the impact of the Qatar field issues on LNG prices were noted as significant factors affecting the market.

    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.