Reliance Industries Limited reported a 12.5% year-on-year decline in its fourth-quarter net profit, as pressure on its core oil-to-chemicals (O2C) business from global energy disruptions outweighed strong growth in telecom and retail.

The company posted a net profit of Rs 16,971 crore for the January–March quarter of FY26, down from Rs 19,407 crore a year earlier and lower than Rs 18,645 crore in the preceding quarter, according to its latest earnings statement.

The decline was primarily driven by weakness in the O2C segment, which faced headwinds from rising crude oil prices amid geopolitical tensions in West Asia. Higher freight, insurance and fuel costs further squeezed margins, while the reintroduction of windfall taxes on fuel exports added to the pressure.

Reliance also diverted feedstock from petrochemicals to produce cooking gas (LPG) to support domestic energy needs, impacting profitability. In addition, capped fuel purchase margins by state-run retailers and the company’s decision to hold pump prices steady despite rising crude costs weighed on earnings.

Despite the pressure in its traditional energy business, Reliance’s consumer-facing verticals delivered strong growth. Its digital arm, Jio Platforms, posted a 13% rise in quarterly profit, supported by subscriber additions and improved average revenue per user. The subscriber base grew by 9.1 million to 524.4 million, while monthly ARPU rose to Rs 214.

Reliance’s retail business also remained a key growth driver, with profit rising to Rs 3,563 crore. The company added 333 stores during the quarter, while its JioMart hyperlocal platform recorded sharp growth in daily orders.

Overall revenue for the quarter rose to Rs 3.03 lakh crore, compared to Rs 2.69 lakh crore a year earlier. EBITDA remained largely flat at Rs 48,588 crore.

For the full financial year, Reliance reported a record net profit of Rs 80,775 crore, up 16% from the previous year, alongside all-time high revenue of Rs 11.75 lakh crore and EBITDA of Rs 2.07 lakh crore.

Commenting on the results, Chairman and Managing Director Mukesh D Ambani said the company navigated a challenging year marked by volatile energy markets and global disruptions. He highlighted the resilience provided by Reliance’s diversified portfolio and strong domestic focus.

Ambani added that the company continues to see momentum in its digital and retail businesses, while also advancing its new energy initiatives, which are expected to drive future growth and support India’s energy security.

With PTI inputs