Reliance Industries Limited (RIL) has announced its financial results for the fourth quarter of the fiscal year 2025, ending March 31, 2025. These results offer crucial insights for investors considering whether to buy, hold, or sell RIL shares. This analysis delves into the key highlights of the Q4 FY25 performance and provides a perspective on the company’s future prospects. Â
Key Financial Highlights of Q4 FY25
RIL demonstrated a resilient performance in Q4 FY25, navigating a complex global economic landscape. The company reported a consolidated net profit attributable to owners of ₹19,407 crore, a 2.4% increase compared to the same period last year. This figure surpassed many analyst estimates, indicating a stronger-than-anticipated performance.
The gross revenue for the quarter stood at ₹288,138 crore, marking a healthy growth of 8.8% year-on-year (YoY). This growth was primarily driven by robust performances in the digital services, retail, and oil-to-chemicals (O2C) businesses. The company also achieved a significant milestone, becoming the first Indian corporate entity to surpass a net worth of ₹10 lakh crore.
Segmental Performance: A Mixed Bag
- Digital Services (Jio): Reliance Jio continued its strong growth trajectory, reporting a 25.7% YoY increase in its consolidated net profit, reaching ₹7,022 crore. Revenue from operations surged by 17.7% YoY to ₹33,986 crore, fueled by strong subscriber additions and the positive impact of tariff revisions. Jio’s average revenue per user (ARPU) improved to ₹206.20, and its 5G subscriber base reached 191 million. Â
- Retail: Reliance Retail also delivered consistent growth, with revenue from operations increasing by 16.3% YoY to ₹78,622 crore. The segment’s profit after tax (PAT) saw an impressive jump of 29.1% YoY to ₹3,545 crore. This performance was supported by network expansion and enhanced store operating metrics, including a significant increase in the hyperlocal delivery business. However, the EBITDA margin for the retail segment saw a slight decline of 20 basis points YoY to 8.5%. Â
- Oil-to-Chemicals (O2C): The O2C business demonstrated resilience amidst volatile energy markets. Revenue for the segment grew by 15.4% YoY to ₹1.64 lakh crore, driven by higher volumes and increased domestic product placement. However, the EBITDA for the O2C segment decreased by 10% YoY to ₹15,080 crore, primarily due to lower transportation fuel cracks and weaker polyester chain margins. Â
- Oil & Gas: The Oil & Gas business recorded its highest-ever annual EBITDA, although the Q4 FY25 EBITDA saw a decline of 8.6% YoY to ₹5,123 crore. This was attributed to lower production from the KG-D6 block, weaker coal-bed-methane prices, and one-time maintenance costs. Â
Dividend Announcement and Future Outlook
The board of directors has recommended a final dividend of ₹5.50 per equity share for the financial year 2025. This marks the first dividend payout after the company’s bonus issue in September 2024.
Looking ahead, Reliance Industries appears well-positioned for future growth, driven by its diversified business portfolio. The continued strong performance of the digital services and retail segments provides a solid foundation. While the O2C segment faced some headwinds in Q4, the company’s focus on optimizing integrated operations and feedstock costs could improve margins in the future. The increasing production from the Oil & Gas business also bodes well for this segment’s contribution to overall profitability.
RIL is also making significant strides in its new energy initiatives, with plans to become a net-zero carbon company by 2035. The company is investing heavily in renewable energy and battery operations, which are expected to transition from incubation to operationalization in the coming quarters. These ventures have the potential to create substantial long-term value for the company and align with global sustainability trends.
Analyst Perspectives and Investment Considerations
Analysts have offered varied perspectives on RIL’s Q4 FY25 results and the future trajectory of its stock. Some highlight the strong performance of the consumer-facing businesses (Jio and Retail) as key drivers for future growth, while others point to the challenges in the O2C segment as a potential concern.
Ganesh Dongre, Senior Manager — Technical Research at Anand Rathi, noted that the Reliance share price is forming a symmetrical descending pattern. A sustained move above ₹1330 could trigger bullish momentum, potentially targeting ₹1425. He advises investors to consider buying on dips near support levels.
Given the mixed segmental performance and the company’s ambitious growth plans in new energy, investors should carefully consider their risk appetite and investment horizon. A thorough analysis of RIL’s future strategies, including the potential timelines for the IPOs of Jio and Retail, and the progress in the new energy business, will be crucial for making informed investment decisions.