Reliance Industries’ Oil to Chemicals (O2C) segment reported a mixed performance for Q4 FY26, with strong revenue growth but pressure on profitability.
The segment’s quarterly revenue rose 12.4% year-on-year to Rs 1,84,944 crore, driven by higher crude oil prices and improved volumes in domestic fuel retail.
However, EBITDA declined 3.7% YoY to Rs 14,520 crore, reflecting margin pressure despite favorable transportation fuel cracks. EBITDA margin contracted to 7.9% from 9.2% in the year-ago period.
The decline in profitability was primarily due to multiple cost pressures, including a sharp rise in crude premiums, elevated freight and insurance costs, and higher fuel expenses. Additionally, policy-related factors such as export duties on diesel and ATF, along with under-recoveries from stable retail fuel pricing, impacted earnings.
Weak downstream chemical margins also weighed on performance, as global demand remained subdued and feedstock costs increased.
On a full-year basis, O2C revenue grew 5.7% YoY to Rs 6,62,401 crore, while EBITDA increased 10.1% to Rs 60,546 crore, supported by better price realization, efficient feedstock sourcing, and strong domestic product placement.
Overall, while the segment benefited from higher fuel demand and pricing, profitability remained under pressure due to global volatility, cost inflation, and policy interventions.