Reliance Industries Q4FY25: How the Shift from Oil to Consumer Business is Redefining Growth

In 2020, during Reliance Industries’ AGM, Mukesh Ambani set an ambitious target: digital services and retail would become the new growth engines, offsetting the traditional dependence on the oil-to-chemicals (O2C) segment. Five years later, the Q4FY25 results have confirmed that vision — and by a wide margin.

The New Oil: Digital and Retail Overtake Traditional Energy

Reliance Industries reported a consolidated EBITDA of ₹48,700 crore for Q4FY25, with Reliance Retail and Jio Platforms contributing over 55% of the total EBITDA, exceeding the contribution from the company's O2C and upstream oil businesses.

While O2C still represents around 60% of total revenues, it now accounts for less than one-third of Reliance's total EBITDA — a dramatic shift from just five years ago when energy businesses dominated both revenues and profits.

This change highlights how Reliance’s strategy to diversify into consumer-facing businesses is not only working but thriving.

Three Key Lessons from Reliance’s Consumer Pivot

Reliance's success with Retail and Jio offers three valuable lessons:

1. Persistence Pays Off: Backed by strong financials, Reliance’s long-term commitment to digital and retail investments has created a force multiplier effect, enabling leadership in both sectors.

2. Timing and Market Opportunity Matter: Jio started by offering low-cost data and voice services in a competitive market. Today, Jio is India’s largest telecom player with over 470 million subscribers and an Average Revenue Per User (ARPU) of ₹203 as of March 2025.

3. Large Organizations Can Innovate: Defying the stereotype that "elephants can't dance," Reliance has demonstrated that even large corporations can pivot rapidly and dominate emerging trends.

The Future of Consumption in India

As income levels continue to rise, India’s consumption story is expected to surge over the next decade. Key growth areas include:

• Food and beverages

• Fashion and lifestyle products

• Digital content and entertainment

• Connectivity and tech-based services

• Health and wellness segments

Reliance Retail and Jio are strategically positioned to capture this consumption boom, offering a diversified basket of products and services aligned with evolving customer needs.

The company's rapid pace of expansion — both in physical stores and digital platforms — ensures it remains at the forefront of India’s consumption growth story.

What Lies Ahead for O2C?

Despite the pivot, Reliance Industries’ O2C segment remains critical. Key transformations are already underway:

• Increased focus on high-margin chemicals rather than just fuel refining.

• Green energy transition: Reliance is investing heavily in green hydrogen, renewable energy, battery storage, and green fuels.

These initiatives align with global sustainability trends and ensure that the company’s legacy businesses are future-proofed.

In its history spanning over 50 years, Reliance has consistently reinvented itself ahead of market shifts. The Q4FY25 results reinforce this legacy of strategic agility and market leadership.