MUMBAI: Step aside, Indian cinema blockbusters—India’s corporate juggernaut, Reliance Industries Limited (RIL), has dropped its Q3 FY25 and nine-month financial results, and the plot twists are as gripping as any thriller.

Mukesh Ambani, Asia's richest man with a jaw-dropping net worth of $101.9 billion, continues to steer this mammoth conglomerate with a flair that makes even the Ambani family's $600 million wedding bash look like just another weekend splurge.

But the numbers game is where the real drama unfolds.

A behemoth company straddling sectors as diverse as petrochemicals, retail, telecom, and renewable energy, all while navigating rising costs, shifting consumer behaviours, and the ever-demanding shareholders. It's a delicate high-wire act, with every quarter bringing a mix of triumphs and challenges that could put even the savviest financial analysts on edge.

RIL has once again delivered a performance that is equal parts spectacle and strategy. With Q3 FY25 results showcasing both sharp gains and a few headwinds, the company continues to prove why it remains the unshakable titan of India’s corporate skyline.

Will Reliance’s growing retail and telecom arms counterbalance the fluctuating fortunes of its oil-to-chemicals business? Are rising costs pinching the profits, or is this a strategic pause before another leap forward? Stay tuned as we break down the twists and turns of Reliance’s financial performance.

Spoiler alert: it’s as gripping as a weekend binge-watch session—except this one comes with billions riding on the final scene.

For the quarter ended 31 December 2024, RIL clocked consolidated revenue from operations of Rs 235,481 crore, a decent 3.7 per cent growth from Q3 FY24. Total income stood at Rs 240,357 crore, marking a steady rise. Net profit for the quarter came in at Rs 19,323 crore, slightly down from Rs 19,641 crore in Q3 FY24. Resilient? Yes. Spectacular? Maybe not. Is the glass half-full, or is it just heavy with operational costs?

For the nine-month period, revenue from operations hit Rs 783,036 crore, a hair’s breadth below last year’s Rs 785,650 crore. But here’s the kicker: net profit surged to Rs 60,666 crore, riding high on stellar performances in retail and digital services. Looks like RIL’s strategy of diversification is paying dividends.

The standalone core remains strong. RIL’s standalone revenue from operations for Q3 FY25 was Rs 134,054 crore, up from Rs 130,579 crore last year. Standalone net profit, however, dipped to Rs 7,713 crore from Rs 9,924 crore in Q3 FY24. For the nine months, standalone revenue reached Rs 405,559 crore, with net profit at Rs 30,351 crore. Steady as she goes, but where’s the spark? Does the core business need a shot of adrenaline?

Segment Performance

●    Oil-to-Chemicals (O2C): RIL’s O2C business pulled in Rs 155,580 crore for Q3 FY25, contributing significantly to the topline. But wait, here’s the rub: EBITDA for the segment dropped 5.4 per cent  year-on-year to Rs 12,413 crore, thanks to higher feedstock prices. Can RIL recalibrate this cornerstone of its empire, or is it time to rethink its O2C game?

●    Retail: The retail arm—the show-stealer yet again—raked in Rs 83,040 crore, up 8.8 per cent  year-on-year. Segment EBITDA climbed to Rs 6,251 crore, driven by aggressive expansions and innovative consumer offerings. But the million-dollar question is: Can this momentum continue in an increasingly competitive retail arena?

●    Digital Services: Reliance Jio, the crown jewel of RIL’s digital portfolio, dazzled with revenues of Rs 38,055 crore and EBITDA of Rs 14,256 crore. Rising data consumption and subscriber additions fuelled the growth, but as competition heats up, will Jio’s dominance hold steady?

●    Oil and Gas: A surprising hero this quarter, the oil and gas segment posted revenue growth of 12 per cent  year-on-year to Rs 6,222 crore. EBITDA surged to Rs 5,290 crore, thanks to improved realisations and higher production. Is this a sign of sustained recovery for a segment once relegated to the shadows?

This quarter saw RIL’s ambitious demerger of Viacom18’s media and cinema businesses into Star India, backed by a hefty Rs 11,500 crore investment. Bold? Absolutely. But will this manoeuvre bring blockbuster results or leave the balance sheet bruised?

The company’s continued push into green energy and retail expansion highlights its long-term vision. Renewable energy projects underscore RIL’s commitment to sustainability, though the hefty upfront costs may weigh on short-term results. Meanwhile, its retail arm’s logistics and operational costs are rising—is it time for some belt-tightening?

And let’s not forget O2C’s margins. With feedstock prices acting like an unruly stock ticker, RIL’s ability to navigate these headwinds will be crucial. Will precise execution and bold strategies be enough to keep this segment buoyant?

What lies ahead?

Reliance Industries’ Q3 FY25 results showcase a company balancing on the edge of consolidation and expansion. With robust performances in retail and digital services, RIL’s adaptability shines through. Yet, rising costs and narrowing margins in its flagship O2C segment call for sharp focus.

Will the investments in green energy and entertainment usher in the next wave of growth, or will rising costs hold the company back? And as India’s digital transformation accelerates, can Jio keep its throne?

For now, RIL’s saga of bold bets and calculated moves makes for an unmissable watch. Stay tuned as this corporate behemoth’s next chapter unfolds.