Reliance becomes first Indian firm to hit ₹10T net worth
What's the story
Mukesh Ambani-led Reliance Industries Limited (RIL) has become the first Indian firm to cross ₹10 lakh crore in net worth. Net worth is defined as the total of a company's assets minus its liabilities. This follows RIL becoming the first Indian firm to cross ₹20 lakh crore in market cap last year. The company's consolidated revenue for the January-March 2025 quarter increased by nearly 9% to ₹2.61 lakh crore, mainly driven by strong growth in digital services and retail sectors.
Financial highlights
RIL's financial performance and market capitalization
In the financial year ending March 2025, RIL's cash profit of ₹1.46 lakh crore outpaced its capital investments for the second year in a row. The company's consolidated net profit for Q4 FY25 was ₹19,407 crore, a 2.4% increase from the last quarter and higher than last year's ₹18,951 crore for the same period.
EBITDA analysis
RIL's EBITDA and margin performance
RIL's consolidated EBITDA for Q4 FY25 stood at ₹43,832 crore, marginally higher than the ₹43,789 crore in the previous quarter. However, the EBITDA margin witnessed a decline to 16.8%, compared to 18.25% in the previous quarter and 18% a year ago. Despite these margin fluctuations, RIL continues to report robust financial performance across its business sectors.
Retail growth
Reliance Retail's performance and strategic changes
Reliance Retail posted a strong performance in Q4 FY25, with revenue increasing by 15.6% and EBITDA soaring by 14.4% YoY. The company's digital and new commerce channels accounted for 18% of total revenue, while its owned brands business grew 30%. Isha Ambani said these results were driven by strategic changes to improve efficiencies and product mix, bringing innovation in formats, and continued investments in technology and customer experience.
Sector performance
RIL's oil-to-chemicals business and Jio's performance
RIL's oil-to-chemicals (O2C) segment saw a 15.4% YoY revenue growth, amounting to ₹1.65 lakh crore for Q4 FY25. However, the management observed a 10% decline over the last year owing to declining transportation fuel cracks and polyester chain deltas. On the telecom front, Reliance Jio added 6.1 million new users in Q4 FY24, pushing revenue up by 15.6% to ₹30,018 crore with 13% ARPU growth.