Reliance Misses Profit Estimates Amid Rising Costs and Supply Disruptions

Reliance Industries reported quarterly results below market expectations, as rising input costs and global supply disruptions weighed on profitability. The impact has been linked to the ongoing Middle East conflict, which has disrupted crude supply chains and increased energy and shipping costs. Mukesh Ambani’s company saw net profit fall to about ₹169.7 billion, missing analyst forecasts.

The company’s core refining business, a major contributor to earnings, recorded a 3.7% decline in profit due to the shortage of crude supplies. Executives described the situation as unprecedented, forcing Reliance to source alternative feedstock from countries such as Russia, Venezuela and Brazil to maintain operations. Meanwhile, overall costs surged significantly, further squeezing margins.

Despite pressure on its energy segment, Reliance’s consumer-facing businesses showed resilience. Jio Platforms posted strong growth, while the retail division also recorded gains, helping cushion the overall impact. The company said it continues to progress toward the planned IPO of Jio Platforms, even as market volatility persists in the short term.

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