Reliance Industries Ltd. (RIL) has undergone a dramatic transformation, with its consumerfacing businesses—Reliance Retail and Jio—now contributing over half of its operating cash profit. This marks a significant shift from its traditional energy dominance, redefining Mukesh Ambani’s legacy from an oil baron to a consumer titan.
Key Highlights:
-
Retail & Telecom Take the Lead: Reliance Retail and Jio now account for 54% of RIL’s total FY25 consolidated EBITDA, a stark contrast to FY17, when 96% of EBITDA came from energy operations.
-
Massive Investment Pays Off: Over ₹6 lakh crore in free cash flow has been invested into consumer businesses, creating ₹18 lakh crore in equity value.
-
Jio’s Growth Engine: Analysts predict 21% EBITDA CAGR for Jio between FY25–27, driven by higher pricing, broadband expansion, and 5G monetization.
-
Retail’s Rapid Expansion: Reliance Retail is expected to see 15–20% EBITDA CAGR over FY25–27, with margins improving from 7.6% to 8.0%.
-
Financial Strength: Despite heavy telecom spending, RIL is set to turn free cash flow positive, maintaining a healthy balance sheet with net debt to EBITDA below 1x.
This shift underscores Ambani’s vision of building a consumerdriven empire, positioning Reliance as a dominant force in India’s retail and telecom sectors.
Sources: Economic Times, MSN News, Business Standard