The O2C segment reported revenue of ₹2.02 lakh crore, up from ₹1.85 lakh crore in the March quarter and ₹1.55 lakh crore a year earlier.
EBITDA rose to ₹17,010 crore, compared with ₹14,520 crore in the preceding quarter and ₹14,511 crore in the year-ago period, marking the segment’s highest quarterly EBITDA in four years. EBITDA margin improved sequentially to 8.4% from 7.9%.
Reliance attributed the strong performance to a significant recovery in refining economics. Transportation fuel cracks strengthened by 2.5 to 4.5 times, while middle distillate cracks averaged record quarterly highs.
The company also benefited from downstream chemical deltas reaching three-to-four-year highs, supported by favourable product spreads and the continued cost advantage of ethane cracking over naphtha.
Among key petrochemical products, polyethylene (PE) spreads surged 79.1% sequentially and 45.7% year-on-year, while polypropylene (PP) deltas rose 66.4% quarter-on-quarter.
Chairman and Managing Director Mukesh Ambani said the O2C business delivered a strong quarter, supported by all-time high middle distillate cracks and improved downstream petrochemical deltas. “The start to FY27 gives me reason to be optimistic about the year ahead,” he said, adding that Reliance will move ahead with the phased commissioning of its New Energy projects while seeking to unlock value through the proposed Jio IPO.
The strong operating performance came despite several headwinds. Earnings were weighed down by the Special Additional Excise Duty (SAED) on petrol, diesel and aviation turbine fuel, continued under-recoveries in domestic fuel retailing, and lower production due to planned maintenance.
Production available for sale stood at 15.6 million metric tonnes, down 9.8% year-on-year, primarily owing to the planned shutdown of the crude distillation unit (CDU) and coker unit, along with higher LPG diversion.
Reliance also highlighted continued expansion of its fuel retail business. The Jio-bp network grew to 2,221 fuel outlets, with petrol sales rising 16.8% year-on-year, although diesel volumes declined 1.9% during the quarter.
The company said the O2C business, along with its Digital Services and Retail segments, delivered double-digit revenue growth, reflecting robust momentum across its key businesses during the quarter.
Oil & Gas: Stable earnings
Reliance Industries’ Oil & Gas business reported EBITDA of ₹4,973 crore during the June quarter, broadly unchanged year-on-year, although the EBITDA margin narrowed 290 basis points. The resilient performance was supported by a higher contribution from KG-D6 oil and condensate production, along with increased coal bed methane (CBM) output and stronger CBM price realisations.
The segment, however, continued to face headwinds from the natural decline in KG-D6 gas production, lower gas price realisations and higher government levies. KG-D6 gas production declined 6.4% year-on-year, while average gas price realisation fell 10.8%. In contrast, CBM production rose 7.4%, with price realisation increasing 21.2%.
