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RIL's O2C segment set to bounce back in FY26

Financial Express Kochi

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January 18, 2025

AFTER A SUBDUED performance in FY25, brokerages anticipate a rebound in Reliance Industries' oil-to-chemicals (O2C) segment, the company's largest revenue driver, driven by an expected improvement in refining margins in the next financial year.

- RAGHAVENDRA KAMATH Mumbai, January 17

The O2C segment posted a 6% year-on-year (YoY) increase in revenue, reaching ₹1.49 lakh crore in Q3 FY25, driven by strong domestic demand and higher production volumes. Ebitda for the segment saw a slight improvement, rising to ₹14,402 crore from ₹14,065 crore in the corresponding quarter of the previous year.

The O2C business, which includes refining, petrochemicals, and fuel retailing, benefited from better product spreads and a focus on operational efficiency.

"After a subdued FY25, we expect earnings to recover for the O2C segment, driven by improvement in refining margins," Motilal Oswal said in a report.

The brokerage further noted that the estimated consolidated Ebitda for the O2C and E&P businesses in FY27 is expected to remain broadly in line with FY24 levels, though upside risks could emerge.

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