Reliance Industries Reports Strong Revenue Growth but Profit Declines
Reliance Industries posted a 25.4% YoY revenue jump in Q1 FY27, but profit fell 24.6% as net profit margin compressed.
Reliance Industries' Q1 FY27 earnings show a sharp divergence: revenue grew over 25% year-on-year, but profit fell nearly 25% due to significant margin pressure.
Reliance Industries delivered a quarter of contrasting fortunes. The conglomerate's revenue surged past ₹3.1 lakh crore, marking a robust 25.4% increase from the same period last year. However, this top-line strength was overshadowed by a 24.6% year-on-year decline in profit, highlighting significant pressure on profitability.
The core story is one of margin compression. The net profit margin for the June quarter stood at 7.4%, a sharp 500 basis-point drop from the 12.4% margin reported in Q1 FY26. This squeeze explains how profit could fall even as sales climbed. Sequentially, the picture is more encouraging, with both revenue and profit rising 4.4% and 12.7% respectively from the March quarter, and the net profit margin improving from 6.9%.
A look at the recent quarterly trajectory shows revenue has been on a steady climb, while profit has been more volatile and remains below the peak seen a year ago.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 311,850YoY +25% | 298,621 | 248,660 |
| Profit (₹ Cr) | 23,196YoY -25% | 20,589 | 30,783 |
| Net Profit Margin | 7.4%YoY -40% | 6.9% | 12.4% |
Key Points
- The trailing-twelve-month (TTM) net profit margin stands at 7.7%, slightly above the latest quarter's figure.
- The stock has delivered a modest 3.1% total return over the past three years, with a slight 3.3% decline over the past year.
- Reliance trades at a P/E of 22.5, a 32.2% premium to its industry peers, reflecting its diversified business model and growth expectations.
The coming quarters will be crucial for Reliance to demonstrate it can translate its impressive revenue momentum into sustained profit growth and margin recovery.
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· RELIANCE
(BSE)
ISIN: INE002A01018
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