Reliance Industries Q4FY26 profit falls 13% amid West Asia

Key takeaway from the March quarter

Reliance Industries Ltd (RIL) reported a sharp profit decline in Q4FY26, highlighting how geopolitical disruption can squeeze earnings even when revenue grows. The company said higher feedstock costs, freight and insurance charges, and other energy-market disruptions weighed on its oil-to-chemicals operations. At the same time, its consumer-facing businesses performed relatively better, with Jio Platforms posting double-digit growth and Reliance Retail showing steady gains. The quarter also capped a milestone year for the group, with FY26 net sales crossing the ₹10 trillion mark, a first for an Indian company. Investors tracking RIL’s earnings mix are likely to focus on how quickly energy margins normalise versus the ongoing momentum in telecom and retail.

Consolidated profit drops despite record quarterly sales

RIL’s consolidated net profit attributable to owners fell 12.6% year-on-year (YoY) to ₹16,971 crore in Q4FY26 from ₹19,407 crore a year earlier. Profit also declined 9% sequentially from ₹18,645 crore in Q3FY26. The company described the quarter as being impacted by volatility in global energy markets, linked to the ongoing West Asia conflict. While the revenue line strengthened, cost inflation moved faster. Consolidated net sales rose 12.5% YoY to a record ₹2,94,000 crore in Q4FY26, up from about ₹2,61,000 crore in Q4FY25 and ₹2,65,000 crore in Q3FY26. RIL said raw material expenses on a consolidated basis climbed 20.2% YoY, outpacing net sales growth.

FY26 milestone: annual sales above ₹10 trillion

For FY26, RIL reported consolidated net profit of ₹80,775 crore, up 16% YoY. Net sales increased 9.6% to ₹10,57,000 crore, marking the first time an Indian company reported annual revenue of ₹10 trillion or more. The company also disclosed that its annual profit before tax (PBT), excluding other income and exceptional gains, rose 7% YoY to ₹94,200 crore in FY26. This metric was presented alongside the impact of one-time items earlier in the year, including a nearly ₹9,000 crore gain in Q1FY26 from selling RIL’s stake in Asian Paints. Management commentary pointed to portfolio breadth and a strong domestic orientation as key buffers in a volatile external environment.

Standalone business takes the biggest hit

The pressure was most visible in standalone results, which largely reflect the refining, petrochemicals and synthetic fibres operations. Standalone net profit dropped 33.8% YoY to ₹7,422 crore in Q4FY26 from ₹11,217 crore, and was also lower than ₹9,396 crore in Q3FY26. Standalone net sales increased 6.7% YoY to ₹1,42,000 crore, compared with about ₹1,33,000 crore a year earlier and ₹1,21,000 crore in the previous quarter. But higher feedstock costs compressed margins and pulled down profitability. RIL’s standalone Ebitda margin fell 440 basis points to 10.6% in Q4FY26 from 14.9% a year earlier and 14.7% in Q3FY26.

What RIL said about West Asia-linked headwinds

RIL attributed margin pressure in its oil-to-chemicals business to multiple factors tied to the conflict. It flagged a sharp rise in crude premiums on physical barrels, elevated freight and insurance costs, and the reintroduction of the special additional excise duty (SAED) on diesel and aviation turbine fuel (ATF) exports. It also cited fuel under-recoveries at retail outlets where it held prices to protect consumers. The company said it diverted propane and butane to boost LPG output and channelled KGD6 gas to priority sectors. It also highlighted optimisation in crude sourcing and steps to maintain high gasifier availability to minimise fuel costs.

Oil and gas: lower revenue amid gas price and volume changes

RIL’s oil and gas exploration business reported revenue of ₹5,867 crore in the quarter, down 8.9%. The decline was linked to lower gas price realisation in KGD6 and coal-bed methane (CBM), and lower gas volumes from the KGD6 field after supplies were diverted to priority sectors. In its presentation, the company said the West Asia crisis led to an estimated global oil supply cut of about 10.1 million barrels per day. It also noted that transit through the Strait of Hormuz had fallen from 20 million barrels per day in February to 3.8 million barrels per day at the time of the disclosure.

Jio Platforms: profit and margin expansion continues

Jio Platforms (JPL), comprising telecom and retail ventures, was described as a top performer in the quarter. JPL reported net profit of ₹7,935 crore in Q4FY26, up 13% YoY. Revenue rose 12.7% YoY to ₹44,928 crore. Sequentially, profit increased 4% from ₹7,629 crore in Q3FY26 and revenue rose 2.7% from ₹37,262 crore. Ebitda for Q4FY26 stood at ₹20,060 crore, up 17.9% YoY, and the company said margin improvement of 230 basis points YoY was driven by higher average revenue per user and operating leverage. ARPU was ₹214 in Q4FY26 versus ₹213.7 in Q3FY26, and was 3.8% higher YoY from ₹206.2.

Reliance Retail: steady growth and store additions

Reliance Retail Ventures Ltd (RRVL) reported a 1.6% YoY rise in net profit to ₹3,574 crore for Q4FY26. Ebitda from operations increased 2.8% to ₹6,690 crore. Revenue from operations was ₹87,344 crore, up 11.1% YoY, while gross revenue rose 10.8% to ₹98,232 crore. The company added 333 new stores in the quarter, taking total store count to 20,160 with a total area of 78.3 million square feet. Finance cost fell 22.8% YoY to ₹525 crore in the quarter.

Snapshot table: Q4FY26 and FY26 numbers (₹ crore)

Market impact: what the numbers imply for investors

The quarter underlined the sensitivity of RIL’s earnings to energy-market shocks, especially through the standalone oil-to-chemicals chain. Revenue benefited from higher commodity and energy prices, but margin capture weakened as input costs and logistics-related charges rose faster. Consumer businesses helped cushion the consolidated result, with Jio’s profit and Ebitda growth accompanied by a higher ARPU and margin expansion. Retail’s growth remained steady, supported by store additions and higher revenue from operations. Management also framed FY26’s revenue milestone as a function of portfolio breadth and domestic demand orientation, even as external headwinds weighed on energy profitability.

Conclusion

RIL’s Q4FY26 results showed a clear split between pressure in the energy value chain and steadier performance in telecom and retail. While FY26 sales crossed ₹10,57,000 crore, Q4 profitability fell as feedstock inflation and West Asia-linked disruptions compressed margins. The company has outlined operational steps such as alternative crude sourcing, feedstock optimisation, and product mix changes to navigate energy-market volatility. Investors will track whether these measures improve margin capture in subsequent quarters alongside the ongoing growth in Jio Platforms and Reliance Retail.