Reliance Industries Shines in Q3 FY25 with Retail and O2C Strength
In Q3 FY25, Reliance Industries Ltd. exceeded expectations with a solid performance in its Retail and Oil-to-Chemicals sectors. Consolidated EBITDA rose to Rs 438 billion, an increase of 12.1% sequentially and 7.7% year-on-year, surpassing consensus estimates. Analysts predict further growth in FY26.
- Country:
- Maharashtra
Reliance Industries Ltd. delivered a robust performance in the third quarter of FY25, surpassing expectations in its Retail and Oil-to-Chemicals (O2C) segments. The company's consolidated EBITDA stood at Rs 438 billion, marking a sequential increase of 12.1% and a year-on-year rise of 7.7%, exceeding consensus estimates by 5%.
Financial analysts have praised the rebound in Reliance Retail, signaling resilience and recovery. Jefferies highlighted the positive outcome of pilot initiatives like express deliveries, suggesting improved outlook for O2C profitability in FY26. The retail segment's EBITDA beat estimates by 8%, registered by notable analysts from JM Financials, Bank of America, and Citi.
HSBC Global Research projects continued momentum in the Retail sector as a significant growth catalyst for the company in 2025. With O2C accounting for 61% of the profit after tax, substantial boosts from refining margins and polymer deltas, reported by Nuvama and UBS, further solidified this segment's crucial role.
While Jio's mixed performance showed a lack of expected results due to lower average revenue per user and high costs, UBS noted a year-on-year improvement in EBITDA. Analysts foresee potential from upcoming tariff hikes and digital growth, aligning with HSBC Global Research's optimistic projections for 2025.
Nomura and JP Morgan observed sequential improvements, crediting Retail recovery and refining strength for the stock's short-term support, alongside HSBC's anticipation of new energy and digital ventures as catalysts. Analysts maintain a positive outlook on RIL's diversified portfolio, expecting stronger returns in FY26. (ANI)
(With inputs from agencies.)
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