Reliance Industries Ltd (RIL) reported mixed performance in Q1 FY26, as global energy markets grappled with heightened volatility amid sharp crude price fluctuations. Chairman and Managing Director Mukesh Ambani noted that the company’s Oil to Chemicals (O2C) segment showed resilience, delivering strong growth by leveraging domestic demand and expanding value-added offerings through the Jio-bp network.
Despite a 1.5% year-on-year (Y-o-Y) drop in O2C revenue—attributed to lower crude oil prices and a planned shutdown—segment EBITDA rose 10.8% Y-o-Y. This growth was driven by favorable domestic fuel retail margins, improved transportation fuel cracks, and gains in polypropylene (PP) and polyvinyl chloride (PVC) deltas. However, the rise was partially offset by reduced volumes due to the planned turnaround and a decline in polyester chain margins.
The Oil & Gas segment saw a 1.2% Y-o-Y dip in revenue, primarily due to lower sales volumes from the KGD6 field as a result of natural production decline. Additional pressure came from weaker coal bed methane (CBM) prices and softer crude realizations. While improved KGD6 gas price realizations offered some relief, segment EBITDA fell 4.1% Y-o-Y, impacted by lower revenue and increased operating expenses from heightened maintenance activities during the quarter.
Ambani emphasized that despite global uncertainties, Reliance continues to prioritize value creation through domestic market focus and strategic operational efficiencies.
