Why did Reliance Industries' net income fall 22% year-on-year despite beating profit estimates?

Reliance's net income fell 22% year-on-year to 209.5 billion rupees because the prior-year quarter included a massive one-time gain from the sale of its stake in Asian Paints Ltd., which inflated the base for comparison; this made the current quarter's underlying performance — which beat analyst estimates of 198.23 billion rupees — appear weaker on a YoY basis despite strong operational execution.

What were the main drivers behind Reliance's better-than-expected quarterly earnings?

The main drivers were record refining margins for diesel and jet fuel, higher petrochemical margins, and robust global benchmark Singapore gross refining margins that surged nearly fourfold year-on-year to $21.2 per barrel, alongside steady growth in consumer businesses — including a 0.7% sequential rise in Jio's ARPU to 215.60 rupees, 12% growth in digital services revenue to 469 billion rupees, and 7.4% revenue growth in retail to 904.1 billion rupees driven by opening 252 new stores.

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FAQ