The Iran war has disrupted global energy supply chains and sent crude prices fluctuating. Reliance's ability to report a profit above expectations amid such uncertainty highlights its integrated business model, which spans refining, telecom, and retail.
Total expenses hit 2.88 trillion rupees, up 27% from the year before.
In the April-to-June quarter, the benchmark gross refining margin in Singapore hit $21.2 per barrel, nearly four times the $5.6 per barrel seen in the same period last year.
Reliance also had a scheduled maintenance shutdown at a crude distillation unit with a capacity of 663,000 barrels per day during the quarter.
The drop in profit compared to the prior year stemmed from a one-off gain recorded in that earlier quarter from the sale of Reliance's holding in Asian Paints Ltd.
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The rest of the business also held up well. Reliance Jio Infocomm, India's largest wireless operator, saw digital services revenue rise 12% to 469 billion rupees. The average revenue per user inched up 0.7% to 215.60 rupees from the preceding quarter.
The retail unit added 252 new stores during the quarter, bringing its total to 20,169. Retail revenue increased 7.4% to 904.1 billion rupees. Reliance cautioned that the expansion of its hyperlocal delivery network could pressure segment margins.
Reliance's stock has dropped 15.5% so far this year, making it a laggard within the NSE Nifty 50 index, which itself is down almost 7%.
Ambani said, "The start to FY27 gives me reason to be optimistic about the year ahead as we move forward with phased commissioning of new energy projects and unlock value," and added that the group plans to take its telecom carrier public.
During the quarter, the founders increased their stake in Reliance to 50.48%, the largest holding in about seven years, indicating they believe in the firm's future even as the stock has been under pressure since the Iran conflict began.
The ongoing Iran conflict has caused significant swings in global crude prices, with benchmark Brent crude fluctuating wildly. Reliance's integrated model - combining refining, petrochemicals, telecom, and retail - provides a natural hedge. Its oil-to-chemicals segment captured higher margins from the sharp rise in Singapore benchmark refining margins, which surged nearly fourfold year over year.
Meanwhile, the scheduled maintenance shutdown at one of its crude distillation units limited throughput but did not prevent the company from topping analyst estimates. This resilience underscores the strength of Reliance's diversified revenue streams and its ability to weather geopolitical shocks.
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