Latest news with #MukeshAmbani-owned
Time of India
a day ago
- Business
- Time of India
Reliance Jio Q1FY26 net profit up nearly 25% on year
Mumbai: Jio Platforms Ltd (JPL), which houses Reliance Industries' telecom and digital businesses, posted a nearly 25% year-on-year rise in fiscal first quarter net profit, boosted by continued addition of data users. JPL's consolidated net profit stood at ₹7,110 in the June quarter from ₹5,698 crore a year earlier, and ₹7,022 crore crore in the previous three months, the Mukesh Ambani-owned company said in a statement Friday. 'I am happy to share that Jio has scaled newer heights during the quarter including crossing 200 million 5G subscribers and 20 million home connections. Jio AirFiber is now the largest FWA (fixed wireless access) service provider in the world, with a base of 7.4 million subscribers,' said Mukesh Ambani , chairman and managing director, Reliance Industries, the parent of JPL. During the quarter, Jio reached 20 million connected premises with fixed broadband, up from 17.4 million in the preceding quarter. Its FWA subscriber base touched 7.4 million - the largest number of any global telecom operator. This was driven by its self-developed multi-point UBR technology which enables multiple home connections through a single 5G cell site, bringing down deployment costs. The company also fulfilled its target of 1 million home connections in a quarter - for the first time - during Q1FY26, it said. The telco has set a target of connecting 100 million homes across the country. Jio's average revenue per user (ARPU) rose 1.3% sequentially to ₹208.8 from ₹206.2 in FY4Q25, with the strong addition of FWA users and the residual impact of last July's tariff hikes. Mukesh Ambani-owned Jio reported a 19% on-year growth in revenue from operations at ₹35,032 crore for the just-ended quarter, reflecting continued data usage and ramp-up of 5G-based FWA services. Revenue in the fiscal fourth quarter was ₹33,986 crore. Reliance Jio Infocomm, the telecom unit under JPL, reported an over 23% on-year growth in net profit for the June quarter at ₹6711 crore, on revenue from operations of ₹30,882, up nearly 17% on year. This compares with revenue of ₹30,354 crore in FYQ425. Jio Infocomm, the country's top telecom operator, comprises the bulk of JPL's operations. During the three-month period, Jio gained 9.9 million users, boosting its overall base to 498.1 million, as the telco continued to gain users mainly from Vodafone Idea and state-run Bharat Sanchar Nigam Ltd. (BSNL). The company had taken the lead in raising tariffs by 12-25% for most of its users with the aim of shoring up ARPU due to the lack of monetisation of 5G services so far where the company has made large investments in buying airwaves and rolling out a pan-India 5G network. It ended the quarter with 212 million 5G subscribers (versus 191 million in January-March). 'Jio continues to create unparalleled technology infrastructure and is extending its leadership in 5G and fixed broadband. This will be pivotal in driving AI adoption in the country,' said Akash Ambani, chairman, Reliance Jio. JPL's FY1Q earnings before interest, tax, depreciation and amortisation (Ebitda) margin expanded to 518% sequentially from 50.1% in the fiscal fourth quarter and 49.7% a year ago. Per capita data consumption grew to 37 GB per month at June end, from 33.6 GB per month at March-end, due to an expansion of Jio's 5G services and increased consumption by fibre-to-home users. Total wireless data consumption rose to 54.7 billion GB from 48.8 billion GB in the preceding quarter, while voice consumption remained flat at 1.49 trillion minutes.
Economic Times
a day ago
- Business
- Economic Times
Jio Platforms Q1 profit rises 25% to Rs 7,110 crore as 5G, broadband user base grows
Jio Platforms Ltd (JPL), which houses Reliance Industries' telecom and digital businesses, posted a nearly 25% year-on-year rise in fiscal first quarter net profit, boosted by continued addition of data users. ADVERTISEMENT JPL's consolidated net profit stood at Rs 7,110 in the June quarter, up from Rs 5,698 crore a year earlier, and Rs 7,022 crore crore in the previous three months, the Mukesh Ambani-owned company said in a statement Friday. 'I am happy to share that Jio has scaled newer heights during the quarter including crossing 200 million 5G subscribers and 20 million home connections. Jio AirFiber is now the largest FWA (fixed wireless access) service provider in the world, with a base of 7.4 million subscribers,' said Mukesh Ambani, chairman and managing director, Reliance Industries, the parent of JPL. During the quarter, Jio reached 20 million connected premises with fixed broadband, up from 17.4 million in the preceding quarter. Its FWA subscriber base touched 7.4 million - the largest number of any global telecom operator. This was driven by its self-developed multi-point UBR technology which enables multiple home connections through a single 5G cell site, bringing down deployment costs. The company also fulfilled its target of 1 million home connections in a quarter - for the first time - during Q1FY26, it said. The telco has set a target of connecting 100 million homes across the average revenue per user (ARPU) rose 1.3% sequentially to Rs 208.8 from Rs 206.2 in FY4Q25, with the strong addition of FWA users and the residual impact of last July's tariff Ambani-owned Jio reported a 19% on-year growth in revenue from operations at Rs 35,032 crore for the just-ended quarter, reflecting continued data usage and ramp-up of 5G-based FWA services. Revenue in the fiscal fourth quarter was Rs 33,986 crore. ADVERTISEMENT Reliance Jio Infocomm, the telecom unit under JPL, reported an over 23% on-year growth in net profit for the June quarter at Rs 6711 crore, on revenue from operations of Rs 30,882, up nearly 17% on year. This compares with revenue of Rs 30,354 crore in Infocomm, the country's top telecom operator, comprises the bulk of JPL's operations. ADVERTISEMENT During the three-month period, Jio gained 9.9 million users, boosting its overall base to 498.1 million, as the telco continued to gain users mainly from Vodafone Idea and state-run Bharat Sanchar Nigam Ltd. (BSNL).The company had taken the lead in raising tariffs by 12-25% for most of its users with the aim of shoring up ARPU due to the lack of monetisation of 5G services so far where the company has made large investments in buying airwaves and rolling out a pan-India 5G network. ADVERTISEMENT It ended the quarter with 212 million 5G subscribers (versus 191 million in January-March).'Jio continues to create unparalleled technology infrastructure and is extending its leadership in 5G and fixed ADVERTISEMENT broadband. This will be pivotal in driving AI adoption in the country,' said Akash Ambani, chairman, Reliance FY1Q earnings before interest, tax, depreciation and amortisation (Ebitda) margin expanded to 518% sequentially from 50.1% in the fiscal fourth quarter and 49.7% a year capita data consumption grew to 37 GB per month at June end, from 33.6 GB per month at March-end, due to an expansion of Jio's 5G services and increased consumption by fibre-to-home users. Total wireless data consumption rose to 54.7 billion GB from 48.8 billion GB in the preceding quarter, while voice consumption remained flat at 1.49 trillion minutes. (You can now subscribe to our ETMarkets WhatsApp channel)
Mint
2 days ago
- Business
- Mint
Reliance Q1 results today: Street expects healthy earnings. Is it the right time to buy RIL stock?
Reliance Q1 results today: Reliance Industries (RIL) will announce its June quarter (Q1) earnings on Friday, July 18, amid expectations of healthy year-on-year (YoY) growth in profit after tax (PAT) and earnings before interest, taxes, depreciation, and amortisation (EBITDA). The Mukesh Ambani-owned oil-to-telecom-to-retail behemoth has experienced prolonged weakness in its core oil-to-chemicals (O2C) business, while the retail and telecom segments have emerged as new growth engines for the conglomerate. Meanwhile, RIL share price has seen a solid gain of over 21 per cent this year till July 17. In comparison, equity benchmark Nifty 50 has risen nearly 6 per cent for the period. Defying cautious market sentiment, Reliance share price climbed half a per cent on the NSE in early trade on July 18 ahead of its Q1 earnings. Amid expectations of healthy earnings, investors face a tough question: Should they buy Reliance stock now or wait? Reliance's Q1 PAT is expected to see a healthy one-off gain from the Asian Paints stake sale. EBITDA is also likely to jump on a healthy showing of core verticals, such as O2C, telecom, and retail. "We expect RIL's consolidated EBITDA to rise by 15.4 per cent YoY (+2.1 per cent QoQ), with a 19-20 per cent YoY increase for O2C, digital and retail, offset by weak E&P (exploration & production). Reported PAT will be boosted by one-off gains of nearly ₹ 90 billion (post-tax) on Asian Paints stake sale," said Kotak Institutional Equities. Kotak expects RIL's Q1 EBITDA for digital services to increase 3.7 per cent QoQ and 20 per cent YoY, driven by the continued flow-through of tariff hikes. EBITDA for retail may rise 20 per cent YoY and 1.4 per cent QoQ, while for O2C, it may increase by 19 per cent YoY and 3.5 per cent QoQ on likely better margins, partly offset by refinery shutdown. However, Q1 EBITDA for E&P may decline 7.5 per cent YoY and 6 per cent QoQ on lower volumes and realisations, Kotak said. Anubhav Sangal, Senior Research Analyst at Bonanza, expects the O2C segment to gain from higher GRMs and better petchem, whereas JIO is anticipated to benefit from increased ARPU and subscriber base. EBITDA margins for the retail segment are probably going to remain stable. "Retail, digital services, and O2C EBITDA are forecast to expand by 19 per cent, 18 per cent, and 18 per cent, supporting RIL's anticipated 14.7 per cent YoY consolidated EBITDA growth. Meanwhile, downstream EBITDA may fall by 4 per cent as a result of lower crude prices. Jio's ARPU is expected to increase by 1 per cent on a quarterly basis to ₹ 210.3, with around 491.2 million subscribers," Sangal said. Saurabh Jain, Equity Head, Research- Fundamentals, SMC Global Securities, expects Reliance to deliver a strong performance driven by resilience and operational strength across its core verticals, such as O2C, Jio, and retail. Jain underscored that Reliance appears to be entering a phase of recovery and strategic momentum, particularly in the O2C segment, which had faced pressure in recent quarters due to volatile refining margins and weak petrochemical spreads. However, improved refining economics and a modest rebound in petrochemical margins are likely to support a recovery in profitability. In digital services, Jain expects Jio to report steady performance, driven by consistent subscriber additions and increasing penetration of fixed broadband, particularly through its 5G fixed wireless access solutions. "Despite pressures from rising depreciation and financing costs associated with the 5G rollout, the segment continues to sustain margin and profit growth," said Jain. "The retail segment is also expected to deliver steady performance, supported by consistent expansion in store footprint and improved operational efficiency, reflected in higher revenue per square foot. Key aspects to watch in the results include management commentary on green energy investments and the pace of monetisation in newer verticals," Jain said. Several top brokerage firms consider Reliance stock a long-term buy due to the company's strong fundamentals and growth outlook. Brokerage firm Motilal Oswal Financial Services has a buy call on the stock with a target price of ₹ 1,685. Motilal expects Reliance's consolidated EBITDA to rise 17 per cent YoY to ₹ 453 billion. Motilal said investors will focus on further clarity on ₹ 750 billion announcements in the new energy business, growth in retail store additions, and any pricing action in the telecom segment. Fundamental factors favour the stock's long-term appeal. However, the recent sharp outperformance seems to have made technical experts sceptical. "At the current juncture, Reliance faced resistance near the ₹ 1,550 mark, followed by a pullback toward its previous breakout zone. While the price has so far respected this support, the RSI has breached its prior support level, which raises caution," said Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers. Reliance shares technical chart "We recommend locking in profits in the ₹ 1,480–1,500 zone and waiting for a clearer structure or a decent pullback before considering fresh entries," said Patel. Read all market-related news here Read more stories by Nishant Kumar
Mint
2 days ago
- Business
- Mint
RIL Q1 preview: Profits have slowed, hype is building—can Reliance deliver this time?
Mumbai: For Reliance Industries Ltd, the April-June quarter results will be a critical test as the ₹20 trillion market cap firm looks to reaffirm its status as India's most valuable company. After a prolonged slump in its core oil-to-chemicals (O2C) business, and as investor expectations rise, the Mukesh Ambani-owned conglomerate will not only have to deliver stronger earnings but also offer concrete progress on its much-touted new energy ventures. While the O2C business has seen a sharp erosion in profitability, the retail and telecom arms have provided crucial support to overall earnings—though not without facing their own operational challenges. Reliance Industries is scheduled to announce its June quarter results on 18 July. O2C drag persists Weak commodity prices have routed the margins in its mainstay O2C business over the past couple of years. The Ebitda from the O2C business has shrunk by over a tenth in the last two years. In response, retail and telecom—the conglomerate's other two key growth engines—have been doing the heavy lifting. But they too face headwinds: cost control remains a challenge in retail, while telecom continues to grapple with revenue growth. Together, these two segments have just about offset the drag from O2C. The result: consolidated profit grew by a modest 4% between FY23 and FY25, compared to about 67% over the previous four financial years, according to JP Morgan. This tested investor confidence, with the stock hovering close to its 52-week low of ₹1,115.55 between December and April. Recently, however, investors have warmed up to the stock again, with shares gaining nearly a quarter since April and approaching their 52-week high of ₹1,593.30 apiece. Investors are taking comfort in analysts' guidance that there was little downside to the O2C business from the lows of FY25, when its profit declined by 12%. "Both refining and petchem (which comprise the O2C business) margins have fallen materially, and should have little sustained downside over FY25 levels," JP Morgan analysts noted on 6 June. O2C also accounts for only a third of RIL's consolidated Ebitda now, down from 44% in FY23, implying that the drag on the consolidated numbers from any margin weakness in this business should be relatively lower, they said. At 0238pm (India time), shares of Reliance traded at ₹1475.10 apiece on the BSE, down 0.72% from previous close. Retail and telecom in focus Meanwhile, retail and telecom—the conglomerate's other two key growth engines—have been doing the heavy lifting. The retail business, though a relatively smaller contributor to the consolidated earnings, trades at expensive multiples and is expected to report better growth. The store count shrank over the past year as Reliance rationalized its retail network and workforce. Management has guided for continued floor space expansion starting this year, and investors will look for material progress on that front. In the January-March quarter, the company also saw an increase in sales within the existing stores, a trend which investors would expect to continue. JP Morgan values the retail business at 32.5x FY27 Ebitda compared to 7.5x for O2C and 13x for telecom. The telecom business under the Jio brand is projected to see revenue and Ebitda growth of 18-21% CAGR over FY25–27 due to an improving pricing environment and the expansion of its home broadband business, analysts at Jefferies said in a note dated 5 June. Cash flows are expected to jump tenfold over this period as capital expenditure requirements are also moderating in conjunction with better income forecasts, they said. The next growth engine The telecom and retail businesses, which have been the drivers of the Reliance stock over the past decade, have matured. A new growth engine is needed—and the company is betting on its new energy business, which spans solar module manufacturing, clean power generation, green hydrogen, and data centres. Reliance is going back to its roots in Jamnagar, where its refinery is located, to set up its new energy and artificial intelligence (AI) infrastructure. The company sees its new energy business being 'more ambitious, far more transformational, and far more global in scope than anything it's ever done before," analysts at Morgan Stanley noted on 3 July, citing company presentations. However, beyond the hype, the company will have to give material updates on the progress it is making on this front as investor enthusiasm on renewable energy has started running out of steam even as interest in AI remains high. Conclusion Investors have already reposed their faith in the stock. The numbers tell the story. Reliance contributed 457 points, or about a tenth to the benchmark index Nifty's 4,534-point (17.25%) correction from a record high of 26,277.35 on 27 September 2024 to a 13-month low of 21,743.65 on 7 April 2025, making it the biggest drag on the index, as per wealth advisory firm Equentis. Since then, the company has contributed another tenth to the index's 18% recovery when it hit a high of 25,654.2 points on 27 June. Now, Reliance has to deliver on its guidance.
Economic Times
3 days ago
- Business
- Economic Times
RIL Q1 Results Preview: Asian Paints stake sale to trigger up to 88% YoY PAT growth. Check revenue, margin estimates
Mukesh Ambani-owned Reliance Industries (RIL) will announce its Q1 earnings on Friday, July 18, where the company is expected to report a steady performance, with healthy year-on-year (YoY) growth in profit aided by one-time gains from the Asian Paints stake sale. The operating income will be led by robust showings in the Oil-to-Chemicals (O2C), Digital, and retail segments. ADVERTISEMENT Sequentially, performance may be muted due to weakness in the Exploration & Production (E&P) business and a high base in Q4. Estimates of four brokerages are taken into account viz. Kotak Institutional Equities, Yes Securities, PhillipCapital and Nuvama Institutional Equities. RIL's Q1FY26 PAT is expected to rise sharply YoY across most estimates. Kotak Equities sees the highest PAT at Rs 28,542 crore, up 88.5% YoY and 47.1% QoQ, factoring in one-time gains from the Asian Paints stake sale. sees the highest PAT at Rs 28,542 crore, up 88.5% YoY and 47.1% QoQ, factoring in one-time gains from the Asian Paints stake sale. Yes Securities projects PAT at Rs 23,693 crore, up 36% YoY and up 5% QoQ. PAT at Rs 23,693 crore, up 36% YoY and up 5% QoQ. PhillipCapital expects Rs 22,463 crore, up 22% YoY and down 1% QoQ. expects Rs 22,463 crore, up 22% YoY and down 1% QoQ. Nuvama sees core PAT at Rs 19,443 crore, up 28% YoY, flat QoQ, excluding exceptional items. The growth is largely driven by higher earnings in Digital, Retail, and O2C businesses, partially offset by a decline in E&P. ADVERTISEMENT Revenue trends are seen to be mixed, with YoY growth in some estimates but sequential declines across the board. ADVERTISEMENT Yes Securities pegs revenue at Rs 2,50,900 crore, up 8.2% YoY and down 4% QoQ pegs revenue at Rs 2,50,900 crore, up 8.2% YoY and down 4% QoQ PhillipCapital sees topline at Rs 2,45,051 crore, up 5% YoY and down 7% QoQ sees topline at Rs 2,45,051 crore, up 5% YoY and down 7% QoQ Kotak estimates revenue of Rs 2,29,476 crore in the quarter under revenue (down 1% YoY, down 12.2% QoQ) estimates revenue of Rs 2,29,476 crore in the quarter under revenue (down 1% YoY, down 12.2% QoQ) Nuvama: Rs 2,21,482 crore, down 4% YoY and down 15% QoQ The sequential decline is attributed to lower crude oil prices, seasonality in the O2C segment, and weaker E&P EBITDA is expected to rise across all brokerages, with margin improvement supported by higher contribution from core verticals. ADVERTISEMENT Yes Securities: EBITDA at ₹45,927 crore, with margin improvement of 158 bps YoY and 154 bps QoQ EBITDA at ₹45,927 crore, with margin improvement of 158 bps YoY and 154 bps QoQ Kotak: ₹44,738 crore (+15.4% YoY, +2.1% QoQ) ₹44,738 crore (+15.4% YoY, +2.1% QoQ) PhillipCapital: ₹44,592 crore (+13% YoY, +2% QoQ); margin at 18.2%, up from 16.7% YoY and 16.8% QoQ ₹44,592 crore (+13% YoY, +2% QoQ); margin at 18.2%, up from 16.7% YoY and 16.8% QoQ Nuvama: ₹45,020 crore (+16% YoY, +3% QoQ) Margin expansion is attributed to higher contribution from high-growth, high-margin segments like Digital and Retail.O2C EBITDA is expected to post a strong recovery driven by improved refining margins and better petrochemical spreads. ADVERTISEMENT PhillipCapital: Rs 15,830 crore, up 21% YoY and up 5% QoQ Rs 15,830 crore, up 21% YoY and up 5% QoQ Kotak: EBITDA up 19% YoY, 3.5% QoQ despite a refinery shutdown EBITDA up 19% YoY, 3.5% QoQ despite a refinery shutdown Nuvama: EBITDA to rise 19% YoY, 3% QoQ on stronger cracks and spreads Refining throughput is expected at 17.8 MMT, with GRMs at $11.7/bbl, said Yes Securities).Digital Services (Jio)Strong subscriber additions and tariff hikes will drive robust digital growth. PhillipCapital: EBITDA at Rs 17,900 crore (+20% YoY, +4% QoQ), ARPU at Rs 211 EBITDA at Rs 17,900 crore (+20% YoY, +4% QoQ), ARPU at Rs 211 Kotak: EBITDA up 20% YoY and 3.7% QoQ EBITDA up 20% YoY and 3.7% QoQ Nuvama: 19% YoY and 3% QoQ EBITDA growth, ARPU up 15% YoY Subscriber base is expected to hover around 496–497 continues to be a growth driver supported by store additions and better footfalls. Yes Securities: Revenue at Rs 91,380 crore, up 20.8% YoY and 3.1% QoQ while EBITDA margin is seen at 7.6% Revenue at Rs 91,380 crore, up 20.8% YoY and 3.1% QoQ while EBITDA margin is seen at 7.6% PhillipCapital: EBITDA at Rs 6,570 crore, which may go up 16% YoY while declining 2% QoQ EBITDA at Rs 6,570 crore, which may go up 16% YoY while declining 2% QoQ Kotak & Nuvama: Retail EBITDA growth of 19–20% YoY, flat to mildly positive QoQ E&P (Exploration & Production)This segment is expected to drag overall performance due to lower KG-D6 production and weaker realizations. PhillipCapital: EBITDA at ₹4,500 crore (down 14% YoY, 13% QoQ) EBITDA at ₹4,500 crore (down 14% YoY, 13% QoQ) Nuvama: EBITDA to fall 10% YoY and 8% QoQ EBITDA to fall 10% YoY and 8% QoQ Kotak: EBITDA down 7.5% YoY and 6% QoQ (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
