Reliance Industries Reports 22% Yearly Decline in Q1 Profit

Reliance Industries Limited (RIL), led by Chairman and Managing Director Mukesh Ambani, announced a consolidated net profit of ₹20,946 crore for the first quarter of the financial year 2027, marking a significant decrease of 22% compared to the previous year. The profit decline is attributed to an exceptional item related to the sale of stake in Asian Paints during the same period last year.

Market analysts have suggested that the purchasing activities by the promoter group may have costs ranging between ₹8,500 crore and ₹9,000 crore. According to YES Securities, RIL's refining throughput is projected to have declined by 7.2% year-on-year, landing at approximately 16.8 million tonnes. The gross refining margin is expected to stand at around $10 per barrel. Analysts from JP Morgan anticipate robust refining cracks and petrochemical margins to counterbalance potential volume losses linked to maintenance.

Motilal Oswal analysts have estimated a standalone Earnings Before Interest, Taxes, Depreciation, and Amortisation (EBITDA) of ₹14,800 crore, which reflects a 12% increase compared to the same quarter last year. Furthermore, Kotak Equities has forecasted that RIL’s consolidated EBITDA will grow by 8.4% year-on-year, with the Oil to Chemicals (O2C) segment growing by an impressive 12.1% due to strong earnings from the Special Economic Zone refinery, a weaker Indian rupee, and the absence of a windfall tax.

Additionally, Jefferies projects a 10% growth in consolidated EBITDA and a notable 20% increase in O2C EBITDA, buoyed by enhanced petrochemical margins and refining profits. As the financial landscape shifts, industry experts continue to monitor RIL's performance and market strategies closely, particularly in the context of evolving economic conditions.