How Reliance Is Turning Data Into Its Next Oil

From oil barrels to data packets: Mukesh Ambani’s bold pivot is rewriting Reliance’s future

Reliance’s Strategic Pivot: From Oil to Digital

A few years ago, when Mukesh Ambani announced that the future of Reliance Industries would be built on digital services and retail, many saw it as a visionary statement rather than a roadmap. Today, it is clear that this was not mere rhetoric. Reliance Industries Ltd (RIL) is undergoing one of the most significant business transformations in corporate India - pivoting from being a traditional oil-centric conglomerate to a data, retail, and technology-driven enterprise.

Deprioritizing Traditional Oil: A Calculated Shift

Reliance has long dominated India’s oil refining and petrochemical sectors. However, it was also among the earliest to acknowledge that fossil fuel-based growth is no longer sustainable in the long run.

While oil refining remains a cash cow for now, RIL is consciously underplaying its future dependence on it. Instead, the focus is shifting toward:

• Downstream chemical production
• Green energy initiatives like hydrogen and battery storage
• Using existing oil cash flows to fund new growth engines

This move reflects a deeper understanding of the energy transition and aligns Reliance with global ESG (Environmental, Social, and Governance) trends.

Telecom: Jio’s Scale Advantage and Profit Surge

Reliance Jio has become a telecom behemoth. With close to 500 million users and over 50% market revenue share, Jio is at an inflection point.

Key updates:

• Most capital expenditure in telecom is now complete, allowing margin expansion.
• Average Revenue Per User (ARPU) is still lower than Bharti Airtel, offering room for upward revision.
• The rollout of Jio AirFiber could further accelerate digital penetration.
• Brokerage estimates suggest Jio’s telecom EBITDA could grow at a CAGR of 23% over the next two years.

In simple terms, every small hike in tariff or ARPU now adds directly to profits - amplifying both valuation and investor confidence.

Retail Rationalisation: Quality Over Quantity

FY25 marked a turning point for Reliance Retail, with the closure of 2,100 underperforming stores. This clean-up wasn’t a setback - it was strategic.

Here’s what’s changing:

• Renewed focus on same-store productivity
• Emphasis on floor space expansion in high-yielding locations
• Planned boost to quick commerce and digital retailing
• EBITDA expected to grow over 20% YoY, according to analysts at Bernstein

Reliance Retail is no longer chasing sheer volume - it’s chasing profitability and long-term shareholder value.

Data is the New Oil: The BlackRock Synergy

Arguably the most exciting part of RIL’s next phase is Big Data. With deep data across both telecom and retail arms, Reliance sits on one of India’s most representative consumer datasets.

What’s next:

• Cross-leveraging data between Jio and Retail to personalize experiences and optimize operations
• Tapping into this data goldmine for financial services via the Reliance–BlackRock JV
• Targeting a space (financial services) where retail penetration is still low, but growth potential is massive

This is not just a tech story - it’s a valuation story. Data improves conversion, reduces cost of acquisition, and creates multi-layered revenue streams.

As Ambani rightly said, “Data is the new oil” - and Reliance is uniquely positioned to refine and monetize it.

Final Word: What This Means for Investors

Reliance is no longer a pure oil-and-gas company. It is a hybrid of infrastructure, telecom, retail, and now - data.

For long-term investors, this diversification offers:

• Resilience across market cycles
• Multi-sector exposure via a single stock
• Compounding growth backed by real cash flows

As RIL expands its digital moat, strengthens its retail channels, and leverages data into new verticals like finance, it’s building the next phase of growth that is more sustainable, tech-driven, and customer-first.

Disclaimer: The content in this article is for educational purposes only and should not be considered financial advice. Please consult a qualified advisor before making investment decisions.