Reliance Industries Charts Energy Future Amid Crude Volatility and Global Fuel Shifts

Reliance Industries Limited (RIL), India’s largest private sector company, has released its annual report for FY2024–25, offering a comprehensive outlook on its oil-to-chemicals (O2C) and upstream oil and gas businesses. The report underscores RIL’s commitment to supporting India’s rising energy demand while navigating a volatile global crude market and shifting transport fuel dynamics.

 

Despite macroeconomic headwinds and geopolitical uncertainties, RIL remains bullish on the long-term growth of its energy businesses, particularly in the context of India’s expanding infrastructure, urbanization, and industrialization.

 

O2C and Oil & Gas: Anchoring India’s Energy Security

RIL’s O2C and upstream oil and gas segments continue to play a pivotal role in meeting India’s energy needs. The company reported record EBITDA from its oil and gas operations, with KG-D6 gas production ramping up to 30 MMSCMD—contributing nearly 30% of India’s total gas output.

 

The MJ field in the KG-D6 block began condensate production in April 2023, followed by successful auctions and cargo offtakes. RIL’s infrastructure-led exploration strategy has enabled it to tie back new discoveries to existing facilities, optimizing costs and accelerating output.

 

Coal Bed Methane (CBM) production also saw innovation, with India’s first horizontal wells drilled in RIL’s SP (West) block. Preliminary results are encouraging, and the company plans to expand this technique to boost output.

 

Global Crude Volatility: A Persistent Challenge

RIL’s annual report acknowledges the continued volatility in global crude oil prices, driven by:

These factors have impacted RIL’s refining margins and export performance. In Q2FY25, RIL’s exports hit a five-quarter low, with the share of exports in O2C revenue dropping to 45.4%. The company has responded by increasing domestic fuel retailing through its Jio-bp JV, which has shown strong growth.

 

Transport Fuels in 2025: A Mixed Bag

RIL’s outlook for transport fuels in 2025 is shaped by several key trends:

Global gasoline demand is expected to peak in 2025, while jet fuel continues to outperform other transport fuels. RIL anticipates tighter fuel markets, with refining margins under pressure due to capacity expansions and weak demand in developed markets.

 

Financial Performance and Strategic Focus

For FY2024–25, RIL reported:

The company’s consumer businesses—Jio Platforms and Reliance Retail—offset weakness in the O2C segment. Capex stood at ₹1.31 lakh crore, with significant investments in new energy, digital services, and retail.

 

RIL’s balance sheet remains strong, with net debt at ₹1.17 lakh crore and cash reserves of ₹2.30 lakh crore. The company continues to maintain financial flexibility to support growth initiatives.

 

Outlook: Balancing Growth and Volatility

RIL’s energy businesses are expected to remain central to its strategy, even as the company diversifies into digital, retail, and new energy. The annual report emphasizes:

While global crude volatility poses challenges, RIL’s integrated operations, infrastructure, and domestic focus provide resilience. The company is positioning itself not just as a supplier of energy, but as a leader in shaping India’s energy future.

 

Sources: Reliance Industries Annual Report 2023–24, Moneycontrol, NDTV Profit, IATA