Retail, new energy key growth triggers for RIL

Consumer businesses offset profit decline in O2C segment in Q4

- RAM PRASAD SAHU

Barring the upstream business vertical, most segments of Reliance Industries Ltd (RIL), the country's largest listed company by market capitalisation, performed in line with, or beat estimates in the January-March quarter of 2024-25 (FY25). The key takeaway was the strong performance of the retail vertical, which, coupled with the digital business, powered the 3.1 per cent year-on-year (Y-o-Y) growth in operating profit at the consolidated level.

The consumer businesses were thus able to offset the 10 per cent operating profit decline in the oil-to-chemical (O2C) segment. Given the recovery in retail, the recent improvement in petrochemical (petchem) margins, and the scale-up in the new energy business, most brokerages have a 'buy' rating on RIL. The stock was the top gainer among Sensex stocks on Monday, rising 5.3 per cent over its previous close.