Reliance Q1 Preview: Strong Profit Growth Expected as O2C, Jio, and Retail Lead the Way

Reliance Industries Ltd (RIL) is expected to post a strong set of earnings for the June quarter, supported by a sharp turnaround in its Oil-to-Chemicals (O2C) division, consistent subscriber additions in Jio, and continued momentum in retail operations.

Net profit is likely to rise 40% year-on-year to Rs 21,233 crore, as per estimates from analysts surveyed by Moneycontrol.

This would mark a significant improvement from the Rs 15,138 crore posted in the same quarter last year and even higher than the Rs 19,407 crore recorded in the previous March quarter.

O2C Division Turns the Corner

After facing a tough financial year, Reliance’s O2C business is set for a margin rebound. Improved refining spreads and stable petrochemical pricing are expected to boost segment earnings.

Analysts expect this segment to contribute significantly to the rise in EBITDA, indicating a potential turnaround story in progress.

Jio and Retail Continue to Shine

Jio Platforms is expected to deliver robust operating performance, driven by subscriber growth and ARPU (average revenue per user) stability. Meanwhile, Reliance Retail continues to show strong traction, benefiting from steady consumer demand and store expansion.

Together, Jio and Retail are likely to contribute to 19–20% growth in consolidated EBITDA, cushioning any drag from weaker oil and gas exploration performance.

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One-Time Gains to Boost PAT

Another boost to reported profitability will come from a one-time post-tax gain of Rs 9,000 crore from RIL’s stake sale in Asian Paints. This is expected to further elevate the profit numbers for the quarter. This strategic divestment adds to the overall strength of the earnings preview, reflecting RIL’s smart capital allocation.

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