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Informist, Friday, Jul. 17, 2026

 

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--RIL: Getting crude was a challenge in Q1 due to geopolitical challenges
--Context: Comments by RIL management in post-earnings briefing
--RIL: Retail Q1 EBITDA dn as co is focusing on building digital commerce ops
--RIL: Q1 finance costs increased due to capitalisation of Jio assets
--RIL: Want to grow online retail ops pretty rapidly this year
--RIL: Benefits of scale FY27 may be seen in coming 2-3 years for online ops
--RIL: Share of grocery in digital ops is accelerating
--RIL: Customer conversions have improved on new JioMart app
--RIL: KG-D6 seeing natural decline, but it is lower than expected
--RIL: Have a multi-well campaign to offset decline in KG-D6

 

By Anand JC and Eshitva Prakash

 

MUMBAI – Reliance Industries Ltd. continues to see a natural decline in gas production at its Krishna Godavari D6 block, but the depletion is not as much as anticipated, the management said in a post-earnings briefing late Friday. The company is getting a rig next month there and is looking at some initial exploration activities, the executive said.

 

"We have a multi-well campaign essentially to set off the natural decline, there are some additional opportunities we are seeing within the existing fields and we are ensuring that the rig is there to undertake those wells," the executive said. 

 

The ongoing war in West Asia has led to a sharp spike in energy prices. None of these developments is affecting the price realisation for its gas products. "We are maximising in terms of the contracts we have; we are maximising the ceiling prices," the executive said. The ceiling price applicable for KG-D6 gas is $8.9 per million British thermal units in Apr-Sept this financial year, which is $1.14 lower than Oct-Mar 2025-26 (Apr-Mar). The company expects this to head towards $9.9 in Oct-Mar of FY27, it said.

 

Before the briefing, RIL had reported a consolidated net profit of INR 209.46 billion on revenues of INR 3.12 trillion for the June quarter. The company's consolidated earnings before interest, tax, depreciation, and amortisation for the quarter stood at INR 540.67 billion, up 10% on year. 

 

The energy-to-retail-to-telecom conglomerate said that the "whole" challenge during the June quarter was about getting crude oil, given the dislocation of supply chains caused by the war in West Asia. "So the challenge has been to get the crude, because finally we were running the refinery at almost full capacity," a top official said.

 

Overall, RIL's finance costs and depreciation costs increased during the reporting quarter. This was because the company capitalised over INR 1 trillion worth of assets belonging to Reliance Jio in FY26. 

 

RIL's retail business reported revenue of INR 797.45 billion, up 8% on year. However, the segment's profit fell 14% on year to INR 28.05 billion and its EBITDA fell 1.1% to INR 63.09 billion. The company blamed this profit decline on its increasing focus on its digital commerce business. "We are focusing on ramping up the digital commerce across verticals, and as we focus on the hyper-local delivery infrastructure. It is about trying to create significant scale in terms of building up the digital commerce business, and it will be backed, of course, by physical infrastructure," the company said.

 

The company wants to grow its online business "pretty rapidly" in FY27. "So we will expand dark stores. We will grow our omnichannel platforms. We will grow JioMart," the company said. RIL recently launched a revamped version of JioMart, which has led to an improvement in customer conversions. Within digital purchases, the company is seeing an acceleration in the purchases of groceries.

 

For its retail business, the company is looking at expansion from the perspective of unit economics. "Each market, the unit economics, we need to have a clear path to positive unit economics. So accordingly, we are evaluating each and every market and focusing our investments in that manner," the company said. "With the scale that will come in this year, the benefit of that scale will convert into value in terms of, you know, margins and cash generation over the next two years," the company added.

 

RIL announced its June quarter earnings after market hours. Friday, its shares closed 2.4% higher at INR 1,327.20 apiece on the National Stock Exchange.  End

 

Edited by Deepshikha Bhardwaj

 

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