Reliance Industries Ltd (RIL) has delivered impressive financial results for the second quarter of the fiscal year 2025 (Q2 FY25), reporting a net profit of ₹16,563 crore. This substantial figure demonstrates the strength and resilience of RIL’s diversified business portfolio. The company’s gross revenue reached ₹2,58,027 crore, reflecting a marginal year-on-year growth. This performance was notably boosted by significant contributions from its Digital Services and Retail segments, showcasing RIL's capacity to adapt and thrive in a competitive market.

In his statement, Chairman Mukesh Ambani emphasized the resilience of the company’s upstream business, indicating that Reliance continues to focus on technological innovation to drive future growth. Furthermore, he reaffirmed the company's commitment to clean energy, with the first of its New Energy Giga-factories set to commence production of solar PV modules by the end of this year. This move aligns with RIL's broader strategy to enhance its sustainable energy footprint and contribute to a greener future.

Reliance Jio's Performance

Reliance Jio has also reported remarkable financial results for Q2 FY25, with a net profit increase of 23.2%, reaching ₹6,231 crore, compared to ₹5,058 crore during the same quarter last year. This growth reflects the strong performance of Jio's Digital Services, which continues to thrive due to rising Average Revenue Per User (ARPU) and improved customer engagement metrics. The company’s revenue for this quarter surged by 14.5%, totaling ₹28,338 crore, up from ₹24,750 crore the previous year.

Additionally, EBITDA for Jio saw a healthy 16.1% growth, climbing to ₹15,036 crore, compared to ₹12,953 crore in Q2 FY24. The EBITDA margins improved slightly, increasing to 53.1% from 52.3% year-on-year. This indicates strong operational performance and effective cost management strategies. The company reported a 7.4% year-on-year increase in ARPU, reaching ₹195.10 compared to ₹181.70 in the same period last year.

Mukesh Ambani noted that the growth in Digital Services was primarily led by the increase in ARPU and improving customer engagement metrics, reflecting the strong value proposition of Jio’s offerings. Moreover, Jio is experiencing accelerated momentum in its home broadband segment, attributed to its unique industry-leading JioAirFiber service.

With 148 million subscribers, Jio has positioned itself as the largest 5G operator outside China, further solidifying its market leadership.

Reliance Retail's Performance

On the other hand, Reliance Retail Ventures Ltd (RRVL) posted a 1.3% rise in consolidated net profit for Q2 FY25, reaching ₹2,836 crore, compared to ₹2,800 crore in the same quarter last year. However, revenue from operations dropped by 3.5% year-on-year to ₹66,502 crore, down from ₹68,937 crore. This decline can be attributed to weak demand in the fashion and lifestyle segment, which has impacted overall growth.

Despite the challenges faced in the retail sector, gross revenue stood at ₹76,302 crore, marking a 1.1% decline from the previous year. This decrease is part of the company’s strategic approach to streamline operations and implement a calibrated focus on its B2B business, aimed at improving margins. Notably, EBITDA rose slightly by 0.3% year-on-year to ₹5,850 crore. The EBITDA from operations grew by 1%, reaching ₹5,675 crore, with margins improving to 8.5%, up 40 basis points year-on-year.

The unique omni-channel model adopted by Reliance Retail, coupled with expanded product offerings and growing consumer touchpoints, supported its steady performance. The company reported 297 million footfalls across its stores and added 464 new outlets during the quarter, showcasing its ability to attract customers despite market challenges.

Oil & Gas Sector Performance

In the Oil & Gas sector, Reliance Industries reported an 11% year-on-year increase in EBITDA, reaching ₹5,290 crore for Q2 FY25, up from ₹4,766 crore in the previous year. The EBITDA margins also saw a significant improvement, rising to 85% from 72% year-on-year.

Despite facing a decline in margins for the Oil to Chemicals (O2C) business due to weaker global demand, Reliance's diversified operations allowed it to maintain a stable overall performance. Mukesh Ambani commented, “Our performance reflects robust growth in Digital Services and the Upstream business. This helped partially offset weak contribution from the O2C business, which was impacted by unfavorable global demand-supply dynamics.”

Conclusion

Overall, Reliance Industries Ltd has demonstrated resilience in its operations, reflecting its ability to leverage its diversified portfolio in challenging market conditions. With a strong commitment to technological innovation and a focus on clean energy, RIL is well-positioned for future growth. As it continues to expand its digital and retail segments, the company is set to strengthen its market presence further.

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