Reliance FY25 Annual Report: Retail and Jio Power Growth, O2C Weakens, Green Push Accelerates

Reliance Industries Ltd (RIL) has released its Annual Report for FY25, offering a sharp glimpse into the conglomerate’s shifting business priorities. With legacy oil-to-chemicals (O2C) operations facing margin pressures, Reliance is clearly doubling down on its retail and digital ventures, which contributed the lion’s share to its robust full-year earnings.

The report, issued just weeks after the company's better-than-expected Q4 results, reinforces RIL's transformation into a consumer and technology-driven conglomerate, even as it continues to build long-term capacity in renewable energy.

Retail and Digital Now at the Forefront

Reliance Jio and Reliance Retail have now become the twin pillars of the group’s earnings performance. In FY25, these verticals contributed a significant portion of EBITDA growth, helping offset the softness in refining and petrochemicals.

Reliance Retail posted a 14% year-on-year increase in EBITDA, buoyed by operational efficiencies, supply chain optimisation, and sustained consumption in core segments such as fashion, electronics, and groceries.

Jio Platforms saw its quarterly profit rise nearly 26%, driven by tariff hikes, strong subscriber additions, and improvements in average revenue per user (ARPU). The digital business also introduced new enterprise solutions aimed at MSMEs, signalling continued expansion beyond consumer mobility. This has resulted in a decent recovery in Reliance share price through the day as well.

Oil-to-Chemicals Margins Remain Subdued

While Reliance’s traditional O2C segment remains central to its balance sheet, the FY25 report noted a double-digit drop in EBITDA from the segment. Weaker global demand and reduced petrochemical spreads impacted earnings despite higher throughput at Jamnagar.

The company acknowledged the cyclical nature of O2C and reaffirmed its plans to move into more sustainable, higher-margin areas over time.

Green Energy Ambitions Advance

Significant progress was made under Reliance’s New Energy initiative. FY25 saw the commissioning of a new gigawatt-scale solar module assembly line, part of the company’s multi-phase 10 GW solar manufacturing complex in Jamnagar. The group also made strategic investments in battery storage and green hydrogen research.

Chairman Mukesh Ambani reiterated that new energy will be one of the "biggest value creators for shareholders in the coming decades."

Outlook: A Strategic Pivot in Motion

The FY25 annual report paints a picture of a strategically evolving Reliance—one that is hedging legacy volatility with high-growth segments and committing capital to future-ready technologies. Retail, digital, and clean energy are no longer secondary bets; they are now central to the conglomerate's growth roadmap.

With India’s consumption story remaining strong and digital penetration deepening, analysts expect Reliance to continue prioritising these segments while gradually repositioning its traditional businesses for the next economic cycle.