Reliance Shares Drop 2% as Q1 Net Profit Decreases 5% Amid Oil-to-Chemicals SlumpReliance Shares Drop 2% as Q1 Net Profit Decreases 5% Amid Oil-to-Chemicals Slump

Reliance reported a 5% decrease in its Q1 net profit, falling to ₹15,138 crore from ₹16,011 crore year-on-year, and a 20% sequential drop from ₹18,951 crore in Q4 FY24, reflecting challenges in its oil-to-chemicals sector.

Shares of Reliance Industries dropped by over 2% early Monday, trading at ₹3,033.5 on the NSE and ₹3,037.3 on the BSE. This decline followed the announcement of their Q1 results, which showed a significant profit decrease.

Despite the dip in the oil-to-chemicals business, Reliance saw growth in its retail and telecom sectors. Jio surged as the world’s largest telecom operator by data usage thanks to 5G, and retail gains were bolstered by increased store footfalls.

Operational performance slightly improved with a 2% increase in EBITDA to ₹42,748 crore. Meanwhile, revenue from operations grew by 11.5% to ₹2.57 lakh crore, despite a slight drop from the previous quarter’s ₹2.64 lakh crore.

The refining and petrochemicals segments witnessed a 14.3% EBITDA decline to ₹13,093 crore. Conversely, Reliance Jio Infocomm reported an 11.7% rise in net profit to ₹5,698 crore, with ARPU increasing to ₹181.7 and customer base expanding to 489.7 million.