Reliance Profit Slips as Energy Shock Hits Core Business, Retail & Jio Cushion Fall

In a quarter marked by global uncertainty, Reliance Industries Limited reported a 12.5% decline in net profit for the January-March period of FY26, highlighting pressure on its core oil-to-chemicals (O2C) business .

The company posted a net profit of Rs 16,971 crore , down from Rs 19,407 crore a year earlier and also lower than the previous quarter. The decline was largely driven by weakness in the O2C segment , traditionally its biggest revenue contributor.

A key factor was the West Asia conflict , which disrupted global supply chains and pushed up crude oil prices. This led to higher costs in freight, insurance, and fuel. The reintroduction of a windfall tax on fuel exports further squeezed margins, adding to the strain.

Reliance also diverted feedstock to produce LPG , ensuring domestic fuel supply during disruptions. While strategically important, this move affected profitability. At the same time, the company refrained from raising fuel prices despite rising crude costs, keeping it competitive but putting pressure on margins.

However, the weakness in core business was partly offset by strong growth in consumer segments. Jio Platforms posted a 13% rise in profit , supported by a growing subscriber base of 524.4 million and improved earnings per user. Its rapid 5G expansion continued to gain momentum.

Retail remained another bright spot. Reliance Retail reported a profit of Rs 3,563 crore , driven by the addition of 333 new stores and strong growth in JioMart.

Despite the quarterly dip, the full-year performance stayed strong, with a record net profit of Rs 80,775 crore for FY26.

Chairman Mukesh D Ambani said the company navigated geopolitical disruptions and volatile energy prices , with its diversified portfolio helping it remain resilient.

Looking ahead, Reliance is focusing on new energy initiatives , expected to drive future growth as global energy dynamics continue to evolve.