Reliance Industries’ Q3 FY25 performance: Record profits amid sectoral growth

Reliance Industries Limited (RIL), one of India’s largest and most diversified conglomerates, has set new benchmarks in the third quarter of FY25, showcasing the strength of its integrated business model. The company reported a consolidated revenue of ₹267,186 crore, a 7.7% increase year-on-year (YoY), and a record profit after tax (PAT) of ₹21,930 crore, marking an 11.7% YoY growth. This performance highlights RIL’s strategic focus on operational efficiency, sectoral innovation, and its commitment to meeting evolving market demands.

The results come on the back of stellar contributions from its telecom, retail, and energy businesses, as the company capitalizes on India’s growing digital penetration, consumer spending, and energy demand.

How Reliance Achieved Record Profits in Q3 FY25

Reliance Industries’ exceptional performance in Q3 FY25 was underpinned by robust growth across its major verticals. Jio Platforms Limited (JPL), the company’s digital arm, emerged as a key growth driver. The segment recorded a 19.2% YoY revenue growth to ₹38,750 crore, driven by sustained subscriber additions and an increase in average revenue per user (ARPU) to ₹203.3. The rollout of 5G services has been transformative, adding over 170 million subscribers to the True5G network, cementing Jio’s position as the world’s leading standalone 5G operator outside China.

Reliance Retail Ventures Limited (RRVL), the retail arm, also delivered a stellar performance, with revenue rising 8.8% YoY to ₹90,333 crore. Festive buying, combined with aggressive store expansions—779 new outlets during the quarter—boosted sales. The retail segment’s growing focus on digital commerce, which now accounts for 18% of total revenue, further highlights its adaptability to evolving consumer preferences.

Meanwhile, the Oil-to-Chemicals (O2C) segment registered a 6% YoY increase in revenue to ₹149,595 crore, driven by higher domestic fuel sales and robust demand for polymers. However, global volatility in energy markets and subdued refining margins posed challenges to this otherwise resilient segment.

Why Reliance Retail Is Revolutionizing India’s Shopping Landscape

Reliance Retail Ventures Limited continues to outpace competitors by leveraging its vast store network and digital commerce capabilities. With over 19,000 outlets and an operational footprint of 77.4 million square feet, the company has positioned itself as a leader in India’s organized retail sector.

The festive season proved pivotal in driving retail growth, particularly in apparel, grocery, and electronics categories. New product launches, attractive festive promotions, and a deep understanding of consumer needs enabled Reliance Retail to cater to diverse demographic segments effectively.

The company’s strategic collaborations, such as its partnership with Saks Fifth Avenue and the acquisition of the Mothercare brand for the Indian subcontinent, are aimed at capturing premium consumer demand. Additionally, the success of own-label brands like Avaasa, DNMX, and Netplay underscores its ability to innovate and expand across value segments.

How Is Jio Platforms Transforming Digital India?

Jio Platforms Limited continues to be at the forefront of India’s digital transformation. The launch of innovative services like JioAICloud, offering free cloud storage of up to 100 GB, has added another dimension to Jio’s consumer-focused approach. During the India Mobile Congress 2024, Jio introduced JioBrain, a machine-learning platform that integrates seamlessly across operations. Such innovations highlight Jio’s intent to redefine technology adoption in India.

The True5G network rollout, with a focus on underserved Tier 2 and Tier 3 cities, has democratized digital access, ensuring connectivity reaches every corner of India. JioAirFiber, a broadband service designed to cater to these regions, has already gained significant traction, with over 70% of new connections coming from smaller towns.

What Challenges Did Reliance’s Energy Business Face?

The Oil-to-Chemicals segment, a cornerstone of Reliance’s operations, faced mixed results in Q3 FY25. While revenue increased by 6% YoY, EBITDA growth was limited to 2.4%, reflecting challenges in global refining margins. However, the company’s domestic sales strategy and focus on optimizing production mitigated the impact of unfavorable global conditions.

Polymer demand rose significantly during the quarter, with polypropylene demand growing 16% YoY, fueled by the automotive, packaging, and consumer durables sectors. The polyester segment also performed well, driven by increased demand from the beverages industry.

Global factors, such as declining crude oil benchmarks and volatile gas prices, weighed on the segment’s profitability. Yet, Reliance’s operational flexibility, including the use of ethane cracking over naphtha and yield optimization strategies, helped maintain resilience.

What Do Reliance’s Results Signal for the Indian Economy?

Reliance’s strong quarterly performance reflects broader economic recovery trends in India. Rising consumer spending, growing demand for digital services, and increased energy consumption have created a favorable environment for growth.

Mukesh Ambani, Chairman of Reliance Industries, noted, “These results are a testament to our resilience and our ability to innovate across segments. As we stand on the cusp of transformative growth, Reliance remains committed to powering India’s economic progress.”

The company’s strategic investments in renewable energy, digital infrastructure, and consumer goods underscore its forward-looking approach. These efforts align with India’s aspirations to become a global leader in sustainability, technology, and economic growth.

Looking Ahead

Reliance Industries is poised for transformational growth as it continues to innovate across its core verticals. The group’s focus on AI-driven solutions, 5G expansion, and sustainable energy positions it well to capitalize on emerging opportunities. Reliance Retail’s aggressive expansion plans and Jio’s push for digital inclusivity will likely be the key drivers of the company’s growth trajectory in the coming years.