Reliance Q4 FY26: Profit down 8.1% to ₹20,616 crore

What Reliance reported for the March 2026 quarter

Reliance Industries Ltd (RIL) reported a weaker March quarter on profitability, with consolidated net profit falling even as the top line grew. The Mukesh Ambani-led group reported net profit of ₹20,616 crore for the quarter ended March 31, 2026 (Q4 FY26). This was down 8.1% year-on-year (YoY) from ₹22,343 crore in the year-ago quarter. On a sequential basis, profit declined 7% from ₹22,167 crore in Q3 FY26. The quarter’s print highlights the impact of margin compression, even as scale remained strong across businesses.

Q4 FY26 profit: YoY and QoQ comparison

The headline number for investors was the drop in profit despite revenue growth. RIL’s Q4 FY26 net profit of ₹20,616 crore compares with ₹22,343 crore in Q4 FY25. It also marks a decline from ₹22,167 crore in Q3 FY26. The company’s reported performance suggests that operating leverage did not translate into higher bottom-line growth during the quarter. Instead, profitability was pressured by weaker margins.

Revenue and gross revenue: growth stayed in place

RIL reported gross revenue of ₹325,290 crore in Q4 FY26, up 12.9% YoY and 10.70% quarter-on-quarter (QoQ). The company also provided revenue figures for prior periods: revenue stood at ₹288,138 crore in Q4 FY25 and ₹293,829 crore in Q3 FY26. While the naming differs (gross revenue versus revenue), the direction of change signals that consolidated activity expanded into the March quarter. For a diversified group spanning oil-to-chemicals, telecom and retail, revenue momentum matters because it reflects volumes, price realisations, and consumer spending trends.

EBITDA and margins: the pressure point

RIL’s EBITDA for Q4 FY26 came in at ₹48,588 crore, described as marginally lower versus the year-ago period. The sharper story was in margins: EBITDA margin contracted 200 basis points YoY to 14.9% from 16.9% a year ago. On a QoQ basis, margins also softened, as the company reported a 17.3% margin in the December 2025 quarter (Q3 FY26). Margin compression of this scale typically indicates either a weaker product mix, higher input costs, higher operating expenses, or a combination of factors across businesses.

Costs moved up: depreciation, finance costs and tax

RIL reported higher cost line items in Q4 FY26. Depreciation rose 11% YoY to ₹14,622 crore, indicating a growing asset base and higher charge from ongoing investments. Finance costs increased 7% to ₹6,613 crore, which the company attributed largely to the operationalisation of 5G spectrum assets. Tax expenses climbed 10% YoY to ₹7,530 crore. Together, these items can weigh on net profit even when operating profit is steady.

Full-year FY26: profit and EBITDA rose

While the March quarter showed margin pressure, RIL reported stronger results for the full financial year. For FY25-26, net profit rose 18.35% YoY to ₹95,610 crore from ₹80,787 crore in FY24-25. Revenue increased to ₹1,175,919 crore in FY26, up 9.8% YoY from ₹1,071,174 crore. Annual EBITDA increased 13.4% YoY to ₹207,911 crore. The full-year picture suggests that despite quarterly volatility, the company delivered earnings growth over FY26.

Segment snapshot: Oil-to-Chemicals (O2C) remained a key driver

In its oil-to-chemicals (O2C) business, RIL reported an 8% increase in revenues to ₹169,000 crore. Segment EBITDA rose 15% YoY to ₹16,507 crore. The company attributed the improvement to a sharp increase in transportation fuel cracks and higher sulphur realisation. It also noted offsets from weakness in downstream chemical margins and higher feedstock freight rates. The mix of tailwinds and headwinds in O2C matters because it is among RIL’s largest contributors to consolidated cash flows.

Retail: revenue grew; margins moderated due to investment

Reliance Retail Ventures reported 11.8% YoY revenue growth, supported by broad-based growth across consumption baskets, deeper penetration into under-served markets, and scaling up of its hyper-local delivery network. Retail EBITDA increased 7.9% YoY to ₹27,033 crore, with a margin of 8.3%. The company said the 30 basis points moderation in margin reflected investment in hyper-local commerce. For investors, this frames near-term margin trade-offs against longer-term expansion of fulfilment capability and customer reach.

Key numbers at a glance

Market impact: what the print changes for investors

The Q4 FY26 numbers reinforce that RIL’s earnings trajectory is increasingly shaped by margin outcomes, not just revenue scale. The contraction in consolidated EBITDA margin to 14.9% is a clear negative compared with both the year-ago quarter and the immediately preceding quarter. At the same time, the company’s disclosure on finance costs links higher interest expense to the operationalisation of 5G spectrum assets, keeping attention on how quickly returns ramp up against capital deployed. For retail, the commentary signals that growth initiatives, such as hyper-local delivery, can depress margins temporarily.

Why this quarter matters in the broader context

RIL’s FY26 full-year growth in profit, revenue and EBITDA indicates that the business has continued to expand, even as individual quarters show volatility. The Q4 margin compression highlights the importance of monitoring segment mix and cost pressures, particularly in O2C where chemical margins and freight dynamics can change quickly. In retail, margin moderation tied to investment suggests a deliberate strategy choice rather than a demand shock, but it still affects near-term profitability. Investors will likely read the quarter as a reminder that RIL’s consolidated numbers can swing with commodity-linked cycles and investment phases in consumer and digital businesses.

Conclusion

Reliance Industries ended Q4 FY26 with net profit down 8.1% YoY to ₹20,616 crore, while gross revenue rose to ₹325,290 crore and EBITDA margins fell to 14.9%. The company also reported higher depreciation, finance costs and tax expenses during the quarter. For FY26, however, RIL posted an 18.35% rise in net profit to ₹95,610 crore and a 13.4% increase in EBITDA to ₹207,911 crore. The next set of quarterly disclosures will be important to assess whether margin pressures ease and whether investment-led businesses sustain growth without further dilution in profitability.