Reliance Industries reported a 17.2% rise in O2C EBITDA to ₹17,010 crore, driven by crude sourcing and ethane advantage. Solar and battery targets remain on schedule.
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Reliance Industries on Friday reported a 17.2% year-on-year rise in Oil-to-Chemicals (O2C) segment EBITDA to ₹17,010 crore for the quarter ended June, driven by crude sourcing diversification and favorable ethane economics, management said on a post-earnings call.
Revenue from the segment jumped 30.4% to ₹2,01,803 crore, helped by a 54.1% increase in crude prices. Transportation-fuel cracks and downstream chemical margins improved. Planned maintenance and a diversion of propane and butane toward liquefied petroleum gas (LPG) for the domestic market pulled production meant for sale down 9.8% to 15.6 million tonnes.
The EBITDA growth came despite that drop in volume. Margin gains from crude sourcing and ethane economics offset the production shortfall.
“Our Energy business delivered a stellar performance through an agile response to changes in the market environment,” said Anant M. Ambani, Executive Director at Reliance Industries.
Reliance diversified its crude basket, sourcing more from Russia and Latin America and reducing dependence on Arabian Gulf grades, the company said. It placed product cargoes in deficit markets such as Singapore, Australia, East Africa and South Africa to maximize netbacks.
Ethane remained relatively cheap when oil and naphtha prices climbed, improving the cost position of Reliance’s ethane-linked petrochemical operations against naphtha crackers. Management said this structural advantage helped offset some of the margin pressure from rising crude-premium and freight costs.
The O2C business also faced special additional excise duty on petrol, diesel and aviation turbine fuel, along with under-recoveries from holding domestic fuel prices, the company said. The diversion of propane and butane reduced petrochemical feedstock availability.
Jio-bp, the fuel-retail joint venture, expanded its network to 2,221 outlets from 1,991 a year earlier. Petrol volumes rose 16.8%, while diesel volumes slipped 1.9% as the business prioritized uninterrupted supply and stable retail prices during the disruption. Jio-bp Pulse crossed 50,000 monthly footfall, supported by 5,820 live charging points. The compressed biogas network crossed 131 operating outlets.
Reliance’s broader Oil & Gas segment reported EBITDA of ₹4,973 crore, roughly flat from a year earlier, aided by higher oil and condensate contribution and improved coal-bed methane (CBM) output. CBM production crossed 1 million standard cubic metres per day, management said, and a multi-well programme would continue. The company also said it would step up drilling in the Krishna-Godavari (KG) basin to offset the natural decline in KG-D6 gas production.
Reliance Retail, the group’s consumer arm, is targeting higher margins from a digital commerce push over two years, the company said without providing specific numbers.
Reliance said it had achieved solar-module and cell production of around 1 GW per week at Jamnagar. It is building an integrated solar manufacturing chain covering polysilicon, wafers, cells and modules. Management said the company was progressing toward 20 GW of integrated solar photovoltaic manufacturing capacity and 40 GWh of battery-manufacturing capacity this year, with longer-term battery capacity planned at 120 GWh.
Engineering and project development at Kutch are moving forward, management said, with installation expected after the monsoon. Reliance expects to begin supplying power from Kutch during the year as transmission infrastructure is readied.
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