Reliance Industries (RELIANCE:NSE) Q1 2027 earnings call transcript

So this has been an extraordinary quarter. Extraordinary when you look at it from point of view of macro volatility. Extraordinary if you see it from point of view of energy market shock. Extraordinary when you think of it in the context of what kind of supply chain dislocation that happened. And in that context is where when you look at the overall performance, I do want to say that it has been an extraordinary performance too. The kind of agility we have shown has been incredible and I will tell you why it is. But starting with the numbers, top line up 25% primarily because of oil prices, but it is also a fact that GEO top line was also up 12%, And retail was up close to 12%.

So it's not just about O2C. EBITDA has been strong. And when you look at EBITDA, recurring EBITDA, because last time, same time, we had the 8,900 crores of Asian paints. And that is why right through the presentation, I have backed it out. Otherwise, it just doesn't make comparable numbers. And it doesn't make sense with those numbers like that. So when you look at that, our overall EBITDA is more than 54,000 crores. So we are up 10%. Net profit at almost close to 23,200, again up 6%. And when you see the numbers, strong performance by O2C up 17%, JPL 15%. And that's really those where they stand out performance. And we will also talk over the other businesses.

So again, consumer businesses is now again back to about 50% of the overall mix, and cash flows continue to be strong, more than from a cash profit point of view, really funding the overall capex.

Moving on to O2C specifically, 30% up on revenue basis, 17,000 crores, and that's up 17%. And when you see the components of the performance, starting with, of course, high distillate margins, we saw that significant, you know, 250% more, 300% more. So, yeah, but I just wanted to say that those numbers are there, but I think those numbers are on a flat crude basis, and it doesn't provide for the fact that you had to pay higher differentials to acquire the crude. But broadly, performance is on the back of higher spreads, deltas, even chemical deltas, three to four years high. I am very excited to hear from you. We are getting the crew from Latin America, getting the crew from the US, Canada, Africa, Russia.

The challenge has been to get the crew because finally we were running the refinery at almost full capacity. Also, the other reason for the performance comes from the actual placement. So quickly the ability to reroute traffic back from Europe, where we were exporting to actually more deficit markets in Asia and Australia, that also helped to give us some of the margins back.

Of course, all this is there, but on the back of it, it was earnings were impacted by, you know, of course, you know, SAED was there, under recoveries in retail was there. We had a plan turned around which meant that production meant for sale was lower by 10%. LPG diversion, as you know, happened a requirement. Also, gas had to be diverted for the other priority sector, which means that we had to use more of liquids to run the refinery. So, I am saying all this to lay the context about this performance after providing for all this. So, in that sense, is what I said, it is extraordinary. Overall, oil and gas, year on year, revenues up 3%, almost EBITDA flat slightly lower.

And in a sense KGD6 production was lower KGD6 price realization was lower but kind of offset because CBM production was higher and actually the realization on CBM was higher and the liquids even though it is small the significant jump in liquid price meant that we were able to almost keep it flat to a year basis On JPL side, as I said, 12% on revenue side and about 15% on margin.

And we also got the benefit of margin expansion. We had market leadership, which was on the back of coverage, tech use cases. And when you now see the number of customers, we have 533 million customers and with about 285 on the 5G network. One of the points in the 12% year-on-year growth is the fact that while connectivity was 11, some of the digital services growth was about 20%. So it also helped pull, and that came on the back of content, cloud, compute, IoT, and managed services, which Anshuman will take you through. But now, also traction on the FWA and of the 29 million fixed broadband subscriber base, now half of it is through GeoAirFiber.

On moving to retail side, 90,000 crores, so this is 12% higher if you were to remove the impact of, you know, RCPL, which was there last time, so it's 12%. EBITDA is 6,309, which is slightly lower on a year-end-year basis. And here, two points I wanted to mention that this reduction is a conscious play. We are focusing on ramping up the digital commerce across verticals. And as we focus on the hyper-local delivery infrastructure, so it is about trying to create significant scale in terms of building up the digital commerce business. And it will be backed, of course, by physical infrastructure, but also on the back of attractive value to the customer. So we think of it as a few quarters.

We want to build this and build the digital business, which I think then sets the stage for us for creating opportunities in the future. And Dinesh will take you through the strategy that we have. Geostar actually did well, 13,000 crore stop line, and income from operations, when I look at income from operations, up 30%. Again, very, very strong performance in the context of what was happening in terms of ads, etc. And RCPL continues to do well, and this is at 8,600 crores is 2x of what it was. Again, each of the brands that we have built on independence, on the beverages side, on camper, very, very strong growth there. And the focus there, as you know, is building the robust manufacturing and the supply chain infrastructure.

So those initiatives are absolutely going full swing. So I am not going to spend time because I talked through the numbers. Overall, as you can see, 25% up revenues, about 10% on EBITDA and Pat 6%. As I said, last time, same time last time was 8,900 crores plus of Asian paint. So it is, you know, if I were to back out for that, this is the kind of overall numbers. You are seeing finance cost and depreciation up, finance cost up 19% and depreciation up 9%. And primarily arising on account of the capitalization in geo, as you know, between March 25 and March 26, more than a lakh crores of assets were capitalized. So therefore, it means higher depreciation.

It means that the interest that was getting capitalized now flows through the P&L. So that really more reflects what we have done in terms of the geo capitalization. And overall, we talked through these numbers on OTC oil and gas. I'm not going to spend time because each of the individual businesses will also talk about it. And overall, when you see from a net debt point of view, it's slightly lower than what it was in March, a lack in 23,000 odd, and capex of about 39,000, close to 39,000 crores. So, yeah, we had an upgrade in the Moody's rating to BA1 and, of course, with SNP and A1.

So, overall, the balance sheet is healthy and supporting our CapEx initiative, both in the O2C side, new energy side, and also as we build more on the hyper-local strategy on retail and, of course, on RCPL and the data center. So the cash flow momentum is enormously valuable to support those capexes. With this, Anshuman.

Anshuman Suryawirawanakaramanan Thank you, Shrikan. Good evening, everyone. Update on the geo results Some high you know key highlight numbers for the quarter 533 million subscribers in connectivity That an addition of 35 million over the last 12 months Out of these 285 million 5G users so which is an addition of 73 million in the last 12 months of 5G users The home broadband fixed broadband connects has increased to 28 million Out of which, 14 million are air fiber homes. So now a lot of the growth is really coming through the air fiber connectivity, and we are also kind of encouraging that because the last mile becomes much more economical and time efficient in being able to do that.

Financial numbers, 39,173 crores is a revenue. That's a 12%, 11.8% year-on-year growth. EBITDA at 20,865 crores. That's a 15.1% year-on-year growth with an EBITDA margin of 53.3%. That's 150 basis points higher than the same quarter last year. And 69.4 exabytes of total data traffic on the network. So 27% growth year-on-year. So all of these metrics showing fairly healthy performance and growth momentum continues.

So in terms of performance highlights, double-digit EBITDA growth, and this is when we've now, as we had spoken last quarter, all of the 5G-related expenses and assets have been fully capitalized. So all of those are getting expensed now. Even after that, we had double-digit EBITDA growth for the quarter. The digital services growth is 20% year-on-year, which outpaces the connectivity growth, which has been the trend over the last several quarters. It's of a smaller base, but nonetheless, it's growing and growing well, and we're being able to monetize services across content, cloud, IoT, and managed services, and a few others which are smaller. So that piece is doing quite well. We are the world's largest standalone 5G operator outside of China with 285 million subscribers on our network.

This is as of June 2026. Per capita data engagement increased to 43.7 GB per user per month, which again is amongst the highest globally for any operator. Another interesting stat is that 5G data traffic is now one and a half times of the 4G data traffic on our network. So it's growing much more rapidly, and we are also encouraging pushing a lot of data usage to that. On the FWA, we have spoken about this in the past, and we have included it in the DRHP, so all of you have heard about this. Our proprietary stack is doing very well. And we have a 78% FWA market share of the net additions in India. Yeah. One other important piece of update for the quarter, there's this PCT rankings of the World IP Organization.

We are the only Indian technology company, technology innovator to be in the top 10, global top 20 rankings. And this has been a significant jump in our rankings over the last year with almost now, I think, around four and a half thousand odd patents, which have either been awarded or are in the process of the revaluation. So clearly establishing our technology leadership. And these patents range from, you know, across telecom related products, network, OSS, BSS, the 4G, 5G code that we run ourselves. So the full network stack, and then a few other things around consumer and digital services. On the mobility side, strategy continues to remain the same. Ad consumers, exchange market leadership, and where we have some inherent advantages or advantages that we have worked on, unique advantages through our superior 5G experience, which network is now pretty ubiquitous, and it's helping us gain both 5G market share, but also incremental customer market share.

We are able to do unique use cases, and we have again spoken about this in the past, so I will not dwell on this, but because of the SA architecture, we have been able to offer customers differentiated value propositions, and these are things like URSP as well, which gives much better quality of service, of course, with the device supporting. The other bit for us on the mobility side and which is both a cause and an effect is using our network and our customer base as a gateway for digital services We are able to offer and really become the entry point for a whole bunch of digital services like the OTT video compute or really AI use cases now increasingly We spoke about the Gemini partnership last quarter, music, cloud gaming.

So all of these are helping us or helping these to access customers. And in the process, helping us monetize our customers better, but also these are becoming modes for us to get customers onto the network and retain them. And then another area of focus for us has been to transition more and more customers who are on the 2G networks onto 4G, 5G. We continue to do that by enabling more digital offerings for those customers through the Jio Bharat devices, but also affordable plans with partner OEMs. So that continues to be a focus area for us.

So amplifying circularity of scale and digital services bouquet, and these kind of go, it's a nice circle from our point of view because each is contributing to the other. On the home side, really using our end-to-end service offerings that we offer at home, the set-top box as a gateway where we are able to push through a lot of content and other services as well, gaming and cloud PC being some which are now being used by people on the set-top box. The GeoTele OS, which replicates pretty much the set-top box on any smart TV as a TV application.

So we kind of don't need the set-top box, the hardware piece in every instance. And that's something that, again, we are popularizing more. GeoPC and GeoGames, we've spoken about this in the past, but these are being offered through our set-top box or through the GeoTele OS and becoming increasingly popular with customers. The idea is also to now to do more coverage expansion, and with the FWA, that is, it's becoming much more possible to be present across the country and be able to connect homes and enterprises very quickly. Then the bundle services to unlock latent demand, and where the entry point may not be through broadband, we try and get it through digital content and make that as the, you know, USP for offering the service to homes.

But in most cases, the broadband adoption is fairly quick and fairly fast, even if that's not the primary reason for somebody taking a connection. So on the geo homes, we have 65% share in incremental net additions over the last 12 months between FTTH and fixed wireless. A lot of that coming in through the fixed wireless. And then for the enterprises where traditionally companies have had service specific play, you've had, I'm sorry, most of the telcos, tradition telcos focusing on connectivity, and then maybe adding a layer or two of some of the other services. We have really focused on offering it as managed services, where it's a combination of connectivity going in with a bunch of managed services, which are important and useful for enterprises across security, Wi-Fi.

Managed Wi-Fi is picking up quite well, ERP, analytics, surveillance, and a whole bunch of other services that we are able to offer as bundled services. And being able to offer this at short notice in specific locations is something which is very important for enterprises and is helping us win more accounts because of a combination of the FWA and the managed service offering that we are able to give to the enterprise customers. Coming to some key numbers, for RJIL, the connectivity business, the key operating matrices, 533.3 million total customer base, and as I said earlier, 73 million additions to the 5G customer base, and 8.6 million net additions to the broadband connections in the last 12 months.

R2 came in at 215.6. That's a 7 rupees increase year on year. All of this, again, it's without any tariff increases or tariff actions that have happened in the last 12 months. Total data consumption grew to 69.4 exabyte per capita data consumption at 43.7. Monthly churn has been reducing every quarter. On the financials for RJIL, the material subsidiary of JPL, the operating revenues came in at 34,212 crores in this quarter, and the EBITDA at 19,590 at a 57.3% EBITDA margin. So that's a healthy 130 basis points improvement over the last 12 months, and EBITDA growing at 13.2% year on year. We have operating revenues at 39,173 crores, as I said in the earlier slide as well, which was at 12% growth.

EBITDA grew faster with the operating leverage, and I'll reiterate, this is after considering all of the 5G networks being fully capitalized now. EBITDA margin at 53.3%, EBIT 13,407, and profit after tax at 7,764. Before the finance cost has gone up, it's really because we are now expensing it, the capitalization, we are not capitalizing it. So while the gross interest cost has really come down because our overall debt number has reduced, but the net interest cost has increased on a year-on-year basis or even from the previous quarter, and that brought down the PAT.

With that, I'm going to hand over to Dinesh for an update on the retail business.

Thanks, Anshuman. Hi, good evening, everyone. On the retail business, just to capture the key metrics, you know, on the operating side, our number of transactions have grown 11, number of customers have grown 11 percent, transactions have grown 46 percent, revenue growth is about 12 percent. So that shows that the number of transactions is growing much faster than revenue. And that's a function of the growing contribution of digital commerce in overall revenues. Digital commerce is, you know, picking up the revenue contribution is growing across consumption baskets, because of which the average transaction value is coming down. Unique customers served during the quarter is up 8.5% on a YOY basis. So we continue to add new customers who are coming across our retail platform.

So these are customers who shopped across at least one of the platforms. In terms of top line growth, as you would recollect, our CPL business was demerged out on 1st of December. So Q1 had the full revenue. Adjusted for that, the underlying revenue growth is 11.6%. On a reported basis, the growth is 7.4%. Grocery digital orders are up 116% on a YOY basis. So both the number of orders are increasing as well as the average order values are increasing. So EBITDA margin is at 7.9%. It's down 80% or 80 bps on a YOY basis. But if you recollect last two quarters, Q4 was 7.9, Q3 for A was 8.0. So, you know, as we increase the growth of digital revenues, margins have come down.

It's a function of that. And that's a consistent trend over the last three quarters. We continue to invest in technology and infrastructure for dark stores to enable online commerce, which is driving the growth in costs.

So if we look at revenue of 7.4, 11.6% adjusted for the overall business. Now, each of the consumption baskets have grown strongly. All our three major consumption baskets, whether it's grocery, fashion, or electronics, All three of those consumption baskets have grown in double digits. The LFL growths are quite healthy. In electronics, it's actually double digits, both grocery and fashion. The numbers are in single digits. The share of online is growing across consumption baskets as well. Profit after tax is down primarily because of increase in depreciation and finance cost. EBITDA is more or less flat for the quarter. So now just to give, you know, just a three year roadmap of how we are thinking about the business, right?

So we are looking at growing our online businesses pretty rapidly during this year. So we will expand dark stores, we will grow our omni channel, omni channel platforms, we will grow Geomart. Also focus on improving in the operational metrics around availability, speed, reliability, market by market. We are looking at expansion from a unit economics perspective. Each market, the unit economics, we need to have a clear path to positive unit economics. So accordingly, we are evaluating each and every market and focusing our investments in that manner. And what we believe is with the scale that will come in this year, the benefit of that scale will convert into value in terms of, you know, margins and cash generation over the next two years.

Because as we are looking at acquiring high quality customers as those customers experience the proposition as the repeat rates go up, you know, a basket values grow over a period of time. So that will help improve grow the overall business and help improve overall margins In addition to that we will look at you know the product makes growing share of our own brands increasing monetization increasing marketplace income So we use all these levers to improve economics which will start reflecting meaningfully in the numbers going forward over the next two years So as I covered, 2027 is basically laying the foundation and scale the business with discipline, right? So while we will grow quite quickly, we'll also look at the quality of business, not just the volume.

So the order density in each and every dark store, the repeat rates, the fulfillment costs, the contribution margins, we look at all of these, we have defined targets for each of those, each of those metrics, and we will evaluate how they go and wherever they don't make sense, we'll cut that down. So growth will be quite disciplined. And what we believe is as the benefit of density as the business of mix productivity improvements, better As our inventory turns, monetization kicks in, we will start seeing good return on capital on these investments, and EBITDA and cash generation would accelerate over the coming years. This year, as I said, we will look at the four key pillars.

Are we getting the right customers? How many of those customers are active? What the repeat rates are? What are the order frequencies are? What is the level of experience? What's our NPS? What's the customer trust? We will focus on those so that we're getting the right quality of customers. On the commercial side, right, what is the basket size, the mix? What is the own brand contribution? And finally, what's the delivered gross margin that we are getting? We will look at, you know, look at, you know, in each of those, this thing being best in class. And finally, the financial contribution in terms of contribution margin, working capital, and EBITDA. So this year, online growth, we will focus on, but it will be quite measured.

So the growth will be funded from existing profits and the absolute numbers will grow. So that was just to give the foundation the framework of how we are thinking about the business.

Now moving on to the update on the consumption baskets on the grocery side, big box stores, we have 1000 plus big box stores, which are hyper markets, and that's something we are scaling quite quickly going forward as well. The LFL growth is quite healthy at 7%. So we are growing faster than what the industry is. And this is pure online. This is not big box growth because wherever we are serving online from these stores, the big box, the box growth is even higher. Another interesting data point when we look at omnichannel customers, we are getting higher wallet share from them. Omnichannel customers, if I look at quarterly data, they have spent 2.7 times more than what a pure offline customer is spending, right?

So there's clearly incremental wallet share and value that I'm able to capture. Also, when I look at the growth of this, so an omnichannel customer, how they were spending earlier, was versus how they are spending now, even on a YOY basis, the The growth in spending is 20 to 25%, right? So people are spending more and people who are converting to online are effectively spending more and over a period of time that's growing, right?

On the quick, on the online digital commerce side, as I spoke about, orders are up 116% on a YOY basis. The share of grocery in digital and grocery B2C is accelerating. So just for reference, it's almost doubled over a YOY basis with the revenue scaling up. Plus on the 3P side, the active seller base is up 26%. We have the widest network covering 5,500 pin codes and not just our grocery stores and dark stores, even 2,500 plus digital and fashion and lifestyle stores are also live on the network. So it's a true cross-category play where we are able to deliver in, you know, grocery is less than 30 minutes, but even other categories less than two hours with a much wider assortment than what a typical dark store would offer.

We redesigned the Geomart app and it went live during the quarter and the feedback and reviews has been quite good. The conversions have improved. When we see the hard data, the conversions are better on the new app. The average order values are improving. So there's good acceptance of the new app from our customer perspective. The focus as I spoke about is on improving the repeat rates, order density, reliability, optimizing the delivery cost and contribution margin per order, right? So we will scale this business aggressively, but with the right unit economics. And investments are concentrated in micro markets where there's a clear path to unit economic, positive economics. So we will go market by market and prove wherever it doesn make sense We will pull back down on that Moving on to B2B pretty steady healthy growth here again 15 increase in average bill value Multiple category staples DFB beverages all continue to show pretty strong traction We continue to attract new customers and engage customers and the number of active transacting customers while we have 4 million customers onboarded.

Every quarter we measure how many customers are active transacting with us and what's the average bill values. Both of them are on the right trend. Moving on to the electronic side, as I spoke about, the LFL growth is quite healthy at 16% on a YOY basis for the big box stores. Rescue has grown on a 27% on a YOY basis. As most of you would be aware, last quarter was a challenging quarter in terms of for electronics because of the availability of memory capacity is a big chip shortage. But because of the brand partnerships we had and we were able to pick inventory early, we got their support. So we were able to mitigate the impact of global shortages while other players had that impact, which had led to pretty strong performance in the business.

Across categories, whether it's ACs, laptop, mobile, small appliances, we have done exceedingly well. We are also strengthening our omnichannel integration with all the big box stores are now live on Geomart, where all the entire grab and go assortment is available on the app and it gets delivered within two hours.

Moving to fashion and lifestyle, 4% LFL growth. GeoRush, if you look at it, this is our quick commerce offering within two to four hour delivery for fashion. The number of orders were up, 136% on a quarter on quarter basis. This is something that we launched two, three quarters back. So there's no full year track record and the base was small. So we are reporting on a quarter on quarter basis. Sheen has crossed app installs of 30 million plus. In fact, we went from almost 11 million to 30 million during this quarter. So there's significant acceleration happening there. Our share of digital commerce in apparel and footwear is at 27 and a half percent. It's almost up 5% on a YOY basis.

So I think the theme is consistent where across channels we are making investments in growing online business and we are seeing pretty strong traction.

Yeah, that's a quick update on the retail business. Now I hand over to Keetan to cover the FMCG.

Good evening. This quarter we delivered 8600 across revenue on FMCG. This was double the growth as compared to last year. On daily essentials, we clocked 3,200. Independence has been recognized as India's most trusted band in 2026-27. On beverages, we delivered 2,900 crores, which was more than 50% of our last year's revenue numbers. We continue to get double-digit shares in all key markets. All other FMCG categories also showed significant momentum. Home care, personal care, processed food, confectionery, chocolates, everything had started kind of giving us good growth. And this is where we feel a lot of growths would be coming during the next quarters. We continue our focus on pan-India distribution. We have now more than 5,000 distributors, and we reach more than 3 million our retail outlets.

More than 80% of our sales is through external channels. And on international, now we reach more than 40 markets.

As said on Daily Essentials, we were rated as one of the most trusted brands. We continue our South India distribution momentum to the acquisitions which we had done, which is on Manna and Udyam. Edible oil is a key category for us, and we have been seeing some great traction on edible oil. We have now some dedicated facilities, and we are also exploring a facility in West Bengal.

On the entire category, we grew 1.7 times the last quarter, last year. On beverages, as I said, we are now the number three NARTD player in India. We continue to have double-digit shares. We also continue to expand in markets. For the next quarter, we have planned to kind of enter into Australia and African markets. On average, this was almost two and a half times growth of what we had in last quarter.

On FMCG businesses, all other categories we have done scale-ups. So for example, in football, we participated through our Allen chips where we had dedicated packs for each and every country which was participating. Similarly on SIL side we continue expanding our portfolio And now we have introduced in Mayo Vermeer Vermeicilli was the last launch We continue scaling up our entire range on Velvet We have entered Glimmer which is one of our other brands We have been concentrating on soaps personal care through this and we have seen significant demand there and this quarter has been a very good momentum and we continue to concentrate on it Similarly, biscuits, confectionaries and all also show us a good, very good traction.

On facilities and supply chain, we continue kind of setting up facilities at a robust pace. We have set up one of the greenfield plants, which is one of the largest beverage plants in Asia. We have commissioned it partially and should be completely ready. This is also an integrated food park facility, where for all other categories also the work has started. Like I said, on edible oil, we are now working to set up a facility in West Bengal. On advertising, we were the number one advertiser on linear TV during IPL. We had the highest share of value in 60 brands. We continue, I think we reached almost on 220 million mobile users, 34 million connected TV devices.

We have also built a biggest mural in Chennai on there, which we call it iconic city. On updates, on Socio, which was a joint venture, now we have acquired a majority stick. We have also completed operational transition on Tony and Guy, Billcream, Badidas, and Métis. These were the brands which we had acquired last year. The sales for this have been commenced in UK and Europe, and also Australia. We are preparing for India launch on this.

Also, happy to say, Kudnest Group is where we had acquired last year. We have now officially manufactured camper cans in Australia and will be doing a launch during this end of this month. Thank you. I hand it over to Ishan now.

Good evening, everyone. I'll walk you through our media business. This was a good quarter for Geostar, where we set new benchmarks on engagement and on consumption. In this quarter, we crossed over 530 million users on the platform, and on IPL in particular, we crossed over 700 million people on the platform. As you can see, the trend over the last four quarters is upwards and to the right, and we're very excited about the engagement that we're seeing across both our sports and the entertainment portfolio.

This was also an important quarter for us to lay the foundations of future growth, so I wanted to call out a few initiatives. The first is we launched Tadka, which is our own in-house microcontent hub. And in the short two months since it's launched in the first week of IPL, we saw over 100 million users engage with the content of the platform. The second is our deep integration with OpenAI and specifically with ChatGPT, where we launched what we call conversational discovery on the platform. So here we have changed the search functionality on the app to be much more conversational, where now a user can talk to JioHotstar in their own native language, irrespective of wherever they are in the country and whatever Indic language they speak.

And finally, we also have our own in-house AI media studio, which we call Jams, and we use Jams to launch our first ever fully AI-generated microcontent, microdrama, that now sits on Tadaka. And we expect that this will allow us to launch much more high-quality content across scale, across our short-form content. I'll spend just a couple of minutes on the highlights on sports and then on entertainment. As you can see from the slide here, IPL 26 turned out to be our biggest IPL ever in terms of consumption. We saw 7% growth over IPL 25 on overall reach, and specifically on CTV, we saw 19% growth in overall consumption. That's very important for us as we see the transition from TV to digital.

The second big highlight for us is the Women's World Cup, which just concluded recently in the UK. And this is an upward trajectory that we're seeing ever since the women's team won the World Cup last year. It led to a much higher consumption on WPL, and we're seeing the same trend continue on the Women's World Cup with triple-digit growth on both digital as well as CTV viewership, and we're very bullish about this as we look ahead.

On the entertainment side, we saw fantastic engagement across multiple properties, and I'll just call out a few over here. The first is Dhurander 2 turned out to be the most watched movie of all time on Jio Hotstar, and this was built on the back of the first Dhurander movie that we had in the previous quarter. In terms of our unscripted shows, Laughter Chefs, which we launched in a number of different languages, as you can see on the screen, saw strong growth over the previous seasons. We also launched a spate of originals of which Pritam and Pedro saw the highest ever opening for a Hindi special and is on track to potentially becoming the largest ever special ever seen on Jio Hotstar.

And we also launched movies in both Tamil and Malayalam, which broke records for us on the platform. In terms of the operational performance, there are a couple of other highlights that I wanted to call out. On digital, we also launched our first ever foray into commerce, along with a partnership that we did with Swiggy. If any of you have not yet tried this, please try it tomorrow when India will play England on the Jio Hotstar app. It allows you to complete an entire transaction on the app itself without you ever leaving the content stream. So this is something that we saw a lot of take up and a lot of positive feedback from both our partners as well as from consumers.

Now on the sports business, I wanted to reiterate how big IPL has been for us, and it remains the biggest acquisition funnel for the entire platform. And it's something that we expect will continue to drive a lot of activation for across our user bases. Digital entertainment overall saw its watch time grow by 16%, and what's also critical is we saw Geostar maintaining its very strong 34% share in linear TV.

Finally, very quickly on our overall financials, we closed the quarter with overall revenue of 10,946 crores, and that's a 14% increase in overall revenue. And you'll see that translate to a 14% increase in our PBT as well. I wanted to call out the operational challenges that the business faced in this quarter, specifically around the real money gaming ban on advertising that was part of our base in the last quarter, but we were not able to do that in this quarter. As well as the U. S. -Iran war in the Middle East, which had an adverse impact on the overall ad market. But we saw strong growth in overall digital advertising, especially on the entertainment side.

And that's what was able to balance out the growth across our overall business. Okay. With that, I will hand over to the oil and gas team.

Thank you. Some of the reasons why it's been exceptional, of course, fuel cracks have been quite good. Ethian also, my colleague will be speaking a little later on that. That's, I think, crude prices have risen, but because of the production in the U. S. , Ethian has been within a good range, which helped the economics. A lot of volatility and supply disruptions, what we've seen. The refining capacity both in the Middle East and Russia has been affected. So all these were some advantages which resulted in the high good numbers. But having said that, there were also headwinds and challenges. We had under-recoveries on the domestic sales, also on our sales to PSUs. SAED has been a bit of a drag.

So what gets missed in the course of this presentation I will be showing you what are the product margins which look like an astronomical growth or exponential growth but it may not really reflect into the profit because there are certain headwinds like crude flat price which you see as a Brent or Dubai and the margin ultimately which a refinery gets can be different because there are huge premiums like some of the OSPs in the Middle East went as close to a barrel Normally we are familiar with a couple of dollars of premium but we seen a premium as high as close to double digits Then we also had the freight rate which probably was a 10x against typically a dollar or so from the Middle East We saw actually rise to 10 times that price.

Insurance costs also. Multiples was on a lower base, but still multiples. Those are the kinds of costs which have risen sharply, and therefore you will find that the EBITDA margin may be a little lower and may not reflect the cracks alone. So I just thought there could be a lot of questions around this, so I just thought I will address that.

And another thing is, of course, LPG was badly required in the country. All of you are familiar with the difficulties faced. We consume about 3 million tons in the country and 2 million tons is imported roughly, give or take. And most of that 2 million ton comes from the Middle East. And with the closure of SOH, suddenly that wasn't coming. So all the domestic refineries were asked to increase production. And we increased the production almost fourfold from where we were producing in February. In March, we increased it and took it up to almost fourfold. So that actually affected the petrochemical production as well as certain high-grade gasoline components which we produce and expose to the US.

In fact, some of you must have read that in California there was a bit of high prices and it was attributed also to the lower availability of alki from India. So these were certain headwinds which we faced. Throughput wise, I think the rest of Asia had runs which were down by maybe 15 to 20 percent during this crisis, whereas Reliance being able to maintain a very high throughput, almost 96, 97 percent. Because we had the shutdown, let's say we lost some capacity, but other than that, we were almost close to 100. Just in April, we had some bit of an issue, but otherwise we were able to operate the refinery throughout at close to 100%.

Even the secondary units, which are the big ones which give the margin like the gasoline and diesel and all that, we could run all our secondary units also at high throughputs. Alki, of course, I mentioned that because of the higher LPG, which was required, there's been a reduced production.

And also on gas, you must be recalling that the government actually regulated the gas available because they wanted to make it available to the city gas distribution and things like that. So, we could actually maximize our gasifier throughput, which helped us reduce our reliance too much on gas. Of course, we had to burn some other fuels, but this helped us during this period of tightness. On the feedstock, what did we do when the SOH was closed? Obviously, we had to scout around. We were agile and we could diversify our basket to Latin America besides AG crude. And then later in this period, we actually found that some of the AG crudes were discounted, so we could also source some AG crudes gainfully.

And in respect of petroleum products also, because the cracks ran up significantly, we did take certain logistical advantages because we chartered a lot of vessels. We could take advantage of that and actually move the cargoes a bit to gain from the better margins that were available in the market. We met all our contractual commitments. Having said that, wherever there was flexibility, we moved to more advantageous markets.

This is the price of Brent crude oil between last quarter and current quarter. We are talking of an increase from $68 a barrel to 104.5 average. Of course, there were days in between when the prices went significantly higher than this because of the SOH closure. Now, why exactly what happened in the Middle East was besides crude also product LPG got affected and then also significant amount of NAFTA comes from the SOH. All this got suspended during the SOH closure and also most of the Middle East countries had to cut their production because of the inability to evacuate the crude. Only a few countries like Saudi Arabia from Yanbu and then some crude from UAE, which is connected to the pipeline to Fujairah, that could move out.

And then Oman, of course, is outside the SOH, straight of Ormo, so they could export. But otherwise Middle East production almost came down by about 12 million during this period Of course it was very there was some production because they were still consuming for their own requirement Even refining capacity was done because products could not be evacuated Of course the ceasefire announcement helped some improvement in the traffic We were thinking it getting normal But of course all of you have read about the recent hostilities again that have started because of which it virtually closed A few ships may be slipping through but by and large the flow is affected I mentioned about the refining capacity utilization dropped everywhere, but we could maintain a high throughput level operating rate.

Oil demand as a consequence of the very high prices that we have seen, particularly for petroleum products. Asia Pacific particularly took a brunt of this high prices. The impact was more in this region, Africa as well as Asia Pacific, where many countries actually did not do their normal buying. Of course, India was isolated from this, so we saw our demand reasonably strong, whereas other countries actually scaled down their imports. And that's why the demand has actually declined. If the prices remain like this, of course, we'll have to see how it goes. But the projection is for demand to be a little lower during the current year, but rebound next year once things stabilize. So gasoline dropped by about half a million barrels a day, diesel by about close to a million barrels per day, and jet caro by 0.15.

Now, looking at the cracks, of course, I mentioned that the cracks went up significantly from $10 for petrol, which we saw in Q1 26, up to $26 in the current cotter that has just passed by, and gas oil from $16 to $63 and ATF from $14 to $62. I was mentioning in the very first slide that this could reflect as the margin should have been higher or the profitability should have been higher, but I told you that there were challenges also on the crude oil, freight and other reasons. Domestic oil demand was reasonably healthy. We have seen from 10.8 it's gone to 11.4 again for petrol and for diesel from 25 to 25.7 and ATF from the more or less stable at about 2.3.

And two products which really saw reduction was LPG and NAFTA. This is because LPG was managed, the demand was managed, because all the consumers were asked to move to other alternative fuels, either electric induction or some other possibilities, and then more and more of piped natural gas. So this was the emphasis. And then many of the commercial establishment were restricted from use. There was rationing. All these things actually caused the LPG to go down. NAFTA also, because many of the petrochemical units and all also were affected because of lack of feedstock. This caused the overall demand in the country to go down. But if you look at the fuels, particularly in India, it's been robust because we've been insulated from the price rise.

So MS growth because of car sales have been growing pretty strong. So that has helped in the petrol growing. Diesel, of course, we have the one is, of course, mining, railway, the construction industry and agricultural demand also. Actually, the monsoon was slightly delayed. Maybe we'll see the impact a little later. In June, we've had deficit, so there is some pickup in the demand for diesel. ATF, of course, there were a lot of flight cancellations, so it's been marginal, or it's been flats, rather. So, RBML, they had to weather the impact of this SOH closure and the prices at the retail level were not increased. So, that did cause some pain. Things are looking up and they are much better now.

And if you look at the market share effectiveness our retail outlets are new format and we try to have a lot of efficiency built in So our effectiveness as compared to the competition for petrol is about 1 times So we do on the same outlet we are better than the competition by 1 times and same way for diesel almost 2 Those are the kinds of effectiveness that we have So with lower number of retail outlets we are able to do better Outlets itself is about 2 As compared to the last year it almost more than 230 to 240 outlets higher Charge points CBG CNG stations and convenience store that something which we continuously building on And also on e CBG and CNG we are continuing to build Of course, this is on a low base, so the numbers of 52% growth and 68% growth are pretty impressive.

But yes, we are working on all these fronts. Going forward, how does it look like? We have, of course, seen a gradual increase in the SOH, but probably over the last few days, things have dramatically changed. So we will have to wait and see how this pans out. But what we notice is some of the producers inside the Gulf, because they have been affected for so long, are willing to take some risks and bring the vessels out. So we are keeping a watch on this. We will monitor and see how to effectively source oil. I talked about the oil demand. Definitely many countries have reduced their imports, and therefore the demand is down. But a rebound is expected next year.

Another important factor is why the crude prices did not go up despite the SOH closure and 12 million barrels. Out of 100 million barrels of production, 12 million barrels not being available even for a short period of time would have caused the price to definitely spike and remain at above 100 for a long, long time. That's what history has shown us. Almost 5 million barrels of that has actually come into the market through releases by particularly the IEA countries. China has been notably absent from importing oil during this crisis. They have returned in a small way, but they have been absent. So that also actually helped the prices remain low, as in when the countries begin to import and replenish their stocks, we may actually see support for the prices going forward.

And of course, refinery margins, we believe, can be robust because if you look at the Middle East, there's definitely loss of capacity in Kuwait and Bahrain. Most of the refineries are badly affected. Then in Qatar, gas is affected. It will not come back soon, which impacts the diesel market and therefore the refining margin. But importantly, Russia has lost more than 40% of its capacity. And what we find is that the Ukrainian ability to penetrate deep into Russia and take out refineries almost at will, okay, is causing a lot of pain in the market in terms of supply and demand. And Russia has already banned the export of gasoline and jet some time back. More recently, they've also banned the export of diesel.

So that shows the seriousness of the thing. And 40% of Russian capacity is not small. It's several million barrels. They're the third largest refiner in the entire world, and they have lost significant capacity. So all this point towards reasonably strong cracks in our view. That's what the market suggests. And what we will be working on is, of course, high asset utilization. That's what we'd like to do. Ensure that the refineries are operating reliably. We will be able to source the oil under all different circumstances, whatever it may be there, go out anywhere and get the oil so that we operate the refineries fully.

We have a pretty integrated chain, so how exactly we would like to meet the requirement. Already we have started to increase our pet chem production. So all this we will do and we believe these are the steps we will take to navigate this difficult, challenging and volatile market.

So, sorry, I think I went to the end. Yeah, I'm in. Thanks, Srini. Last quarter was absolute roller coaster quarter. The volatility in prices of raw materials was absolutely phenomenal. That also led to the volatility in the prices of products as well. Crude oil prices changing. 5 to 10 percent in a day was completely unheard of. That was happening so regularly during this quarter that it became the operations really, really difficult and challenging.

While the NAFTA went up 61 percent, 9.03, during the quarter it even crossed $1,000 a ton. And even at that reported price, there were significant premiums of almost like $100 a ton, and the availability was still a constraint. And add to that significantly higher freight rates. The cost of making ethylene from NAFTA shot up like anything. That resulted in a lot of capacities going under operating in the whole of region within the country also. So add to this the LPG control order that also restricted the availability of LPG as feed for ethylene.

And finally, availability of natural gas also was restricted severely as gas from Qatar got blocked because of the Hormuz blockage, which meant that a couple of capacities where natural gas was being used as a feed for ethylene also got impacted badly. The situation in US was different because the oil prices were high, their oil production was high, their associated gas production was high, and the ethane prices therefore were softer. Polyethylene, typically in our markets, all the supplies from Middle East were blocked, biggest sources of polyethylene, and that resulted in prices and deltas with NAFTA shooting up sharply. PP also, the prices were very firm, although like deltas were up only 3%. PVC was a completely different story.

The China has a huge capacity of PVC which is coal based and they upped the operating rates of those plants, which meant that the availability of EDC remained in plenty, whereas the availability of EDC mainly from Middle East sources The Delta of PVC was actually lower by 10%. Polyester chain, PTA and Parazylene operations were hampered in the biggest region, which is China. The simple reason was the availability of crude was restricted and the priority was being given to fuels. So the deltas for polyester chain went up despite sharp decline in the MEG delta. Ethane has always been an evergreen feed, and in this particular quarter, it got even more highlighted. The NAFTA cracking margins have been weak for the last couple of years.

This year, this quarter was no different, but the delta of ethane and NAFTA cracking was phenomenally 4. We saw the last part of the data. And because, for us, almost like 70% of the feed is ethane, we were significantly in an advantage position for the business. The demand of products was impacted badly because of multiple reasons. One reason, of course, the primary reason was the prices were Number 2, the availability was restricted. All the supplies from Middle East were severely hampered. 3, even the consumption was hampered because LPG supplies were not there. Natural gas supplies to industry were also curtailed. So all in all, polymer demand was down 22% and as I mentioned earlier, for the reasons, PVC was least affected and polythylene was the highest affected product So, the product out of the three.

Polyesticide also, the demand was impacted, filament and staple. Here, there was one more factor, which was like the LPG availability also meant that the food supplies to a lot of casual labor, which work in the polyester downstream industry in the spinning area was impacted. And there was a kind of a mini exodus of that labor from main producing areas like Surat, etc. to their villages.

Also, the gas supplies again in this area was also restricted, which meant that the operating rates in the downstream were curtailed. And that resulted in lower demand for staple and filament. Coming to the situation now we see that the FTAs especially the UK FTA which has been signed recently we expect that it will give a fillip to the textile and the polyester export opportunities There are new capacities of crackers in China which are expected to come, although they have got slightly delayed of late, But they will definitely keep the pressure on the operating rates up. For us, our advantage remains, ethane remains a big advantage. That gives us a significant flip in terms of the cost position.

Our effort will all be there to keep our operating rates high. We have ordered, I mean we have talked about this earlier in these interactions that we We had ordered three new ships for Ethane. We have already got delivery of first of them. As we are talking, it is reaching the US ports to get loaded, and by next month, we should be getting it. So that will, the delivery, and the subsequent two ships are also likely to get delivered in the next couple of months. And what this will mean is that our competitiveness with respect to NAFTA cracking will further increase. We had got impacted earlier, I had talked about it in earlier interactions that because of the sways blockage, our ships were going through Cape of Goodhobe and that had partly reduced the availability of ethane for us which will get compensated with this change.

So disciplined operations and optimization of feedstock is going to be our strategy going forward. Thank you. Good evening, everyone. Just as a recap of the quarter gone by, so revenues were higher by almost 3.2% year on year, and mainly we've been trying to manage, offset the natural decline in KGD6, but we've seen higher price realization from condensate, We have received nearly $107 per barrel. So that's been a big driver. And secondly, we've seen better performance in the CBM campaign to wells. So now we've crossed 1 million standard cubic meters of gas. So this is a turnaround story in CBM that we are seeing. That's encouraging us to do more campaigns as we go along. Overall, in KGD6, whilst there is a natural decline, it's lower than what we had expected.

So we are trying, we have a plan to offset this natural decline, which I'll talk about shortly. In terms of price realization, yes, the ceiling price is lower by almost $1.14, and that's what's capping off the upside compared to the elevated prices that we are currently seeing. However, we do expect, because of the elevated prices of energy and commodities all around, we expect in the second half the prices to go up, reflecting the elevated prices that we are currently seeing.

CBM obviously benefits by not having a price ceiling, so we obviously have realized a lot better in CBM. On the production, as you can see, there is a steady decline, but two things are going to happen. One is we are getting a rig next month. We are looking at some initial exploration activities in the KG Basin to accrete reserves, but thereafter we have a multi-well campaign, essentially to set off the national decline.

There are some additional opportunities we are seeing within the existing fields, and we are ensuring that the rig is there to undertake those wells. And CBM again, like I said, we will continue with the multi-well, the multilateral program, the 40-well program, and this we expect to undertake in both the blocks with time to come. In terms of gas prices, yes, you know, we have seen gas prices when the war was underway being much higher because of the stranded volumes in the Strait of Hormuz.

When the ceasefire happened, it eased off and there was, you know, we saw prices come down. But again, it's still much higher than the pre-war levels. And with what we are seeing now you know the likelihood is as long as this escalation remains prices will continue to remain elevated So how does that position us in CBM Yes you know we can get better price realization In KGD6 we have a ceiling price but again the ceiling price is expected to go up by you know at least a dollar That's our expectations based on the calculations from what we're seeing in the first half. So in the second half, we should see at least a dollar upside from here.

And, you know, this, you know, the whole, you know, if you go back about six to 12 months back, you know, we were all worried about the possibility of the glut. You know, I think what has happened as a consequence of the events that have unfolded, you know, that effect has been to some extent offset by the current escalations that are there. In India, obviously, the consumption mirrored the supply to that extent, year on year, 10 percent lower. But again, you know, India, you know, has had ways of looking at sourcing the gas to other destinations besides what was coming from Middle East earlier to set up, you know, to manage that. We're looking at North American supplies from Nigeria, Oman, and so on.

Sorry. In terms of the policy circular that had been issued by the government for prioritizing the gas from the PSC blocks, which is essentially to CGD and to fertilizers and so on, that has been rolled back. And again, you know, we have to see how things shape up, but it doesn't affect the price realization as far as we are concerned. Anyways, we are maximizing on in terms of the contracts we have, we are maximizing the value based on the ceiling price. As such, like I mentioned, currently the ceiling price is 8.9, which is almost $1.14 lower than what it was the previous half. But again, we expect this to trend upwards and, you know, go towards $9.9 in the second half.

That's the outlook. So thank you. Good evening, everyone. This last quarter has been from our perspective about the discipline execution at scale. Across our various projects, renewable generation projects, manufacturing, and green fuels, multiple programs are progressing at rapid speed and in parallel. First on downstream, we already executed the large green ammonia contract with Samsung CNT, which demonstrates the commercial traction of our ecosystem, and we continue being in discussions with various strategic partners to tie up our balance capacity. Getting to Kutch renewable ecosystem, which is probably one of the largest globally, we continue to progress well. The execution on the ground, the engineering is progressing well. The project development continues to progress. We expect to start installation after the monsoons in Kutch.

And as the transmission network gets ready, we will start supplying power from Kutch this year. We continue to keep preparing for execution at scale, which we have announced at 55 megawatt of solar PV per day and 150 megawatt hour of battery installations per day at the peak capacity. All of this round-the-clock power ultimately comes to Jamnagar to feed our refinery, our new energy projects, the data center, which is again scaling up at speed. We provide the green power for that, as well as the entire green fuel complex that we are building in Jamnagar. Additionally, and along with the Kutch, we have also started executing our generation assets at multiple locations across the country for captive as well as CNI requirements.

Coming back to Jamnagar and the green energy giga complex, we continue to make good progress. I already achieved a production of around one gigawatt peak of solar modules along with our solar cells, all ALM certified. And we are on track, and I've got a few pictures to also demonstrate that, to achieve 20 gigawatt capacity, annual capacity, for our solar PV manufacturing in integrated fashion. Our battery manufacturing is also progressing well We achieve 40 gigawatt hour capacity this year And we have announced the scale through our AGM up to 120 gigawatt hour capacity which effectively positions us one of the largest globally when it comes to energy storage capacity What differentiates Reliance is effectively this integration across the value chain, coupled with our world-class engineering and our manufacturing excellence.

And this integrated platform positions us to be one of the lowest cost electricity and energy producers globally, and serving India's requirements as well as export, and also providing our self-sufficiency in energy for India. A few quarters back, I presented an aerial view of Jamnagar site. I'm just repeating it here to demonstrate what we are building in Jamnagar, which to be frank is very few companies globally can even aim for. What is demonstrated on the picture is not an individual factory or a building, but effectively a fully integrated manufacturing ecosystem for solar PV manufacturing from polysilicon to wafers to cell to modules to glass, all at a single location. What it delivers is effectively the lowest cost across logistics, supply chain efficiency, inventory management, material traceability, quality management, and lowest cost of the production.

There is no other site in the world which can command or claim for similar integration across the value chain at scale what we are being able to deliver.

Starting with our wafer pilot plant, which is fully executed, and now we have moved to gigascale manufacturing and commissioning in the next few quarters. A few slides or a few pictures on the slide from ingot poolers to fully grown ingot in our pilot plant.

Polysilicon, which is effectively the most critical part of the entire solar value chain, and where we continue to progress well in our construction, And now are nearing towards the completion of the construction and handover of the facilities for startup activities and commissioning. Solarcell, we have already announced that we have commissioned a few lines of solar cell and continue to expand that capacity each quarter. This is one of the most technologically advanced solar cell manufacturing in the world with HGT technology. But more importantly, the level of automation, the level of integration is unparalleled, delivering effectively the highest quality solar cell with the highest efficiency and the utility scale size.

Again, a few pictures on the solar cell. So the PV module, again, we have already announced. We have walked you through various demonstrated pictures, including through our AGM presentations. A few additional pictures here. Again, PV module continues to be one of the most automated module manufacturing at this scale in the world. The last few pictures I want to leave you is with the battery Gigafactory. We already had shown you the progress on the container and continue demonstrated progress on the ground. But on the right side, you're also looking at the battery cell manufacturing. Just to make a note, this battery cell manufacturing has a capacity of around 40 gigawatt hour. And what you see on the slide is a 400 meter width and nearly one kilometer of length of this battery cell.

We are going to commission it this year. These are effectively the slides I wanted to present on the new energy, which effectively over last few quarters, our focus has moved from strategy to tangible execution, demonstrated progress on the ground at scale. Across our integrated portfolio of renewable generation assets, manufacturing, and green fuels, our focus is now towards achieving integration at scale and cost leadership, which is what we continue to drive towards. Thank you.

So I'll be a bit careful in answering that because, you know, we are in the process and I don't want to give any forward looking kind of statements. But firstly, yeah, that growth number is increasing. So there is scope for far more monetization of the digital services.

And, you know, the point I was making was it is higher than connectivity and it's growing, but there's scope for a lot more there, of course, because of all the products and technologies that we have developed.

And the margin also is a function really of the revenue itself. As the revenue grows, the operating leverage and something like that where you've got a team sitting and making IP. So that cost will get, you know, with revenues growing, that cost does not go up. In fact, normally tech services and products would have much higher margin than connectivity. But for now, we are investing in those and the margin is therefore still low or lower than connectivity. It should pick up. And just to going back to your question about high team growth in the connectivity, yes, whenever the tariff increases and the flow on impact of that, it happens that way. But otherwise, it's, you know, regular without a tariff increase, you've seen the growth trends over the last few quarters.

Thank you. My second question on the ARPU number for the quarter, on a quarter on quarter basis, we've seen about a percent or less than a percent growth. This despite mix improving in the favor of fixed broadband, an extra day in the quarter, while it's probably seeing data consumption increase. And despite that, if the ARPU growth is less than a percent quarter, which means underlying ARPU is actually under pressure, what explains that? Why would ARPU underlying not be improving despite all these? It's not the underlying ARPU is not under pressure. We are still, you know, in the in the TARPU mix improving, if you're referring to homes, etc. As you would have seen, notice we are promoting that service.

And therefore, the ARPUs are not necessarily higher there than mobility. So that's one impact that we see. Otherwise, as I've spoken in the past as well, on a purely organic basis, without written TARPUs, I mean, having a 4% to 5% kind of tariff ARPU improvement is what we've seen practically happen on the ground. So it's not because of any pressure on the ARPU, and that much should happen. I think we're more or less in the similar trend, except that we have some of those promotional offers going in for the home business at this point in time. Thank you.

Sure. So I think without getting into specific numbers, we will continue our expansion of our dark store network. At least next 12 months, I think that will 9 to 10 months, it will continue. We are focusing on expanding the network going deeper into the markets. So that investment will happen. So, the fixed cost investment is not very high, but when you go, CapEx is not very high, but when you go, you set up a dark store, you add the fixed cost, and then the order ramp up, etc. happens over a period of time. But as I said we will be quite disciplined We are taking a view on which markets it makes sense where there enough demand markets are ready So we are going that way and we be quite disciplined about it where our assumptions on the profitability don hold up We will scale back from those markets So we go in a quite a disciplined manner Just not chase volume growth or some vanity metric on number of orders That something we will not do But what we have said is we are consciously making investments in that business which is showing up you know Short term pressure on margins, absolute numbers will increase as I've outlined.

The percentages for the short term could come down because we are investing in that business and there is a cost to serve which is over and above that. Your next question about what is our advantage? So I think there are two or three things which we have which differentiate us. One is we have a lot of customer data within retail itself. We do understand, you know, what the customers, who the customers are, where they are, what their behavior is, because we have transaction data over the last 20 years. Almost 400 million customers are part of our loyalty program, right? So that's our big differentiator. Understanding of the right assortment, what sells, right? There is a bit of science in that.

We do have again a lot of data, we do have a very strong process, you know, to understand when we go to a new market. What kind of assortment sales there? There are some differences between quick commerce and stores in terms of the way purchasing behavior people have. So we are appreciating that and we are learning that. But I think there's a big advantage in terms of knowledge base that we have built. We are present in over a thousand markets in grocery. So that's I think second. Third is we are able to leverage our existing infrastructure as well, which is a big advantage to us. While when I open a dark store, new dark store, it's an added cost.

But when I open a dark store within a store, right, that's not incremental cost for me. The fourth part I would say is the supplier relationships that we have and the scale that we have that gives us better margin, right? So that's again another advantage. I do know for a fact our terms of trade are significantly better than some of our other peers. So that's something that again provides a competitive advantage where I can give a very good price to the customer while still maintaining my margin. So I would say these are three or four things which will help us differentiate ourselves. Yeah, yeah.

Sure, sure. So, right, it is a target that we are taking that is our ambition. We wouldn't be putting it out unless we were confident about it. We feel reasonably confident. Yeah, it is a bit it is a stretch, but we feel confident that we should be able to achieve that. In terms of you know, the milestones as I said, right revenue growth this year, the share of online will grow right a lot of growth because there's a So, there is a natural limitation to how much you can grow your offline revenues. And in today's world, you don't need to necessarily set up a lot of stores everywhere to serve the customer. You have a few stores and then you can supply to the customers at their home.

So, revenue growth will come and a scale comes up by definition operating leverage will come. That should lead to incremental positive EBITDA. As far as our absolute EBITDA is going up, we are happy and that's why if you look at it, we have not put any margin target. What we are saying is we are looking to double our absolute EBITDA number.

Very clear, thanks.

Look I going to be generic here We have different products and services for different customer segments enterprises B2C even within that industry verticals In the past we spoken about industry vertical and vertical offerings that we got So the teams are made for those products and services and verticals in whichever is the best manner for those products and services to be taken to market And that the way we really review it as well So there are teams which are focusing on different aspects about the product. Of course, we have targets, we have plans, and we then monitor against those. I don't think I will be able to say anything more beyond that given this period. Sure.

Thank you very much and all the best.

So I'll only answer the first one. Complementary technologies also need to be focused on, and we have to work on, you know, every technology that is available. And we'll invest when the economics is proven. How much we'll invest, what the outlook is, etc. Again, not possible to speak about at this point in time. You've seen the facts. We have kind of the application, and we have spoken about that a little bit in the DRH. Beyond that, at this point, I don't think we should be talking. This would entail serving global customers as well, right? Because satellite is something which is not, I know, you can't tie it down to a particular country. You guys know the business as well as most people do, if not better.

Yeah, so if it's a Leo constellation, we have to figure out the geographical spread as well. Thanks, thanks.

We can comment at this point in time on the second question around management changes, right? Routine in nature, you all have seen Pankaj Pahar being involved with Gio pretty much from day one, in fact, even before that. And he's been running the connectivity business and a fair chunk even of the digital services businesses. And those are being monetized a lot more now, and those are going to the market. So it was kind of natural, and KT is focusing on the intelligence. He's leading the intelligence AI initiatives for the group. So it was just kind of logical, and now was a good time because we had to frame the whole org. So you shouldn't read too much into it.

Kate Pankaj has been driving the telecom business and also the monetization of the digital services business for a while now. And you all have seen him in action for several years. He's been the MD of RJIL, the connectivity business, for a fair bit of time, and he was on the board of JPL as well. And on the third one, the meta partnership, the partnership, we're doing lots of things with them. And we always keep on doing that. You know, we try to explore areas where we can work together. Now, the recent one that we announced, that's not from Jio, that's actually from Reliance and the intelligence business of Reliance is the development of a data center, 168 megawatt data center in Jamnagar, where we as a group would be providing end to end services.

So that's not only just building the data center building, but managing end-to-end, providing network power, connectivity, managed services completely end-to-end. So we are very excited about that project. And in fact we think that a big opportunity not only for us for the country and it will get scaled up a lot more And there will be benefits for all of our various businesses And there will be benefits for Meta as well who for the first time diversifying in a big way away from not away US is their priority but looking at a different market to develop this kind of critical infrastructure Hi, this is Puneet from HSBC. Thanks.

A little early to answer the second part. We are doing it on our own balance sheet and it's part of the intelligence business. And we'll figure out that whole business will also evolve. We believe it's going to be fairly large. We have the balance sheet capacity at this point in time with the group to fund it, but we'll see how it really evolves. There is a clear timeline for the commissioning of that project. It's commercially sensitive, therefore I'm not going to speak about it, but it's much faster than what traditionally data centers have taken in India, and we have a clear plan between Meta and us to be able to deliver it in that time period.

And this entire 168 coming all at one shot? That will come all in one shot, yes.

I think we have stayed away from commenting very specifically on CapEx, but generally you know what is our overall framework in terms of what is the EBITDA to debt and all those ratios. So that's one aspect of it. And you could recall I've always also highlighted, you know, we look at our international credit ratings, you know, where we stand with S&P and Moody's and so on. So we have all these factors and therefore everything that we do from CapEx, etc. , is all looked through this prism of rankings and ratings. So what that means is that it gives, you can call it flexibility, you can say that we have a way in which you can phase programs, phase CapEx, and to your questions, maybe even evaluate partners at the appropriate time.

So a lot more of options absolutely available across these projects. So yeah, stopping short of saying what is exactly the set of numbers that we will do. But you also know broadly how the larger capexes in geo, etc. have scaled down. You know what we talked about in the context of retail, yeah, specific to hyper local one. But as Dinesh explained, the investment is more in the nature of trading off EBITDA or EBITDA margins rather than a very specific physical capex. So, yeah, long winded answer, but it is just to lay the context.

So see revenue growth in the context of the market, if you look at this quarter, it's healthy double digits. All the consumption baskets are doing well. That's a good thing. I think as we are looking up at scaling up of digital commerce, right, that can be scaled disproportionately. It's not limited to, you know, setting up stores takes time physically, right? You have to set up each and every store. Online can be scaled up much faster. So as the share of online grows, one would expect revenue growth to accelerate from where it is today.

Are you asking how much propylene was dumped into LPG, is that the question?

I don't want to answer, just say that. Actually, it is a very complicated answer because there was some propylene which got directly dumped into the LPG and there was some propane which got dumped into LPG and that propane would have also generated some ethylene and some propylene when it was going to RGC. So it is a complicated answer and difficult to put a number onto it. But it was substantial and despite that limitations of feedstock in our system, we were able to perform much better financially because our cost of cracking, cracked ethylene and propylene versus the market price, the delta had opened up substantially. Because the pricing of the polymers was actually linked to the NAFTA.

And our cost structure remained where it was.

Amit, can I just say that? So we were following a government order in terms of what it is. And I think the easiest way for me to highlight is you can also see the production meant for sale. And you can see the component of how much of the polymer production has got impacted. That's probably the nearest we can come in terms of quantifying.

So ethylene and ROGC, sorry, ethylene and ROGC put together constitutes about 70% of our ethylene.

Yes, a little more.

A little more, yeah. A little increase further.

See, we don't disclose the number of orders. I guess what we disclose is how we are going on a year-on-year basis. And the growth continues to be healthy. If you look at over the last several quarters, now I guess three to four quarters at least we have maintained 100% plus growth in the number of orders.

I think that was the original contract, right?

So what we are tasked is get the crude somehow, which we will be working towards. Valuation also, I mean, a few days back, what was the price? And today it's $85 plus and it's $70 plus. So it's, I'm sorry, but it's too hypothetical for me to really give an answer on what is likely to happen in future and things like that.

Maybe to add, I guess a week back, if you had said this crude availability is going to be very easy, the answer would have been… No, no, I am saying that it was very challenging last quarter. No, no, till things improved and therefore till last week if the cornerization was, one would have said, yeah, but now back to where it is. So the challenges can be as much as what we saw in the first quarter.

But as you know, we have seen the toughest time in terms of being able to access and get that kind of crew from all over the world. So the team is very confident of being able to handle all of this volatility. So our original volume that we had designed the system was for about 1.6 million tons. And because of Swayze getting blocked, we were short by about 7 to 8 percent kind of number. And with new ships coming in, we will not only catch up that, but we will go beyond that. And with all trips, when all the three ships are there, we will be substantially higher than that number.

The Reliance team was removed, but we do not know how that will evolve. We do not know what will be the under recovery. So a lot of imponderables are there. I do not want to even hazard. But the fact remains, what are the facts that remain is that refining and broadly, structurally, it is short. And you are seeing those aspects very much right through any kind of resolution also, but cracks have behaved in a certain way. Also, on some of the capacities, as Amit talked about, both on the polymer products, polyester products, there are some advantages. So I think structurally, yeah, we are in a good place right through and some of these volatilities will live through that and maybe it is beneficial too.

So, like we have announced, the target continues to kind of, you know, grow leadership in all categories. And we have anyway announced the target is to kind of take this to 1,00,000 CR on FI30. We continue to kind of build on capacities, working to gain leadership. EBITDA, I would put it across since the concentration there, yeah, we are break-even on EBITDA terms. But the habitat will improve as a scale and all the supply chain is kind of put it across. But yeah right now the concentration more on the market share and on the daily essentials part we have independence We have in equally good life also So it all put together That the number of independence like you used to give the last two So we can share that later So this was a total number of the entire entire stables category.

This is going to be tough, my friend. So, you know, first of all, even the deltas that you are seeing, $60 delta, mid-distillates, etc. , you have to ask yourself, are those accessible deltas given the fact that there is significant premium to buying crude? There is significant logistic cost in transporting. There are significant cost in insurance. So when you talk about unit economics, it becomes very tough. All these costs have to be seen in the context of what deltas you are able to realize. So sometimes if the realization is good, you are able to afford this. So I will find it impossible to even try and attempt to say what it is. We are trying to say and highlight the volatility exactly to explain that it has been enormously challenging to be able to do.

And in that context, you know, say 17,000 crores, which is up, is a very strong performance. And even assuming there were these numbers, it is not a steady state number. So it is very, very, very tough for me to attempt a crystallization of those numbers.

No, but that is the point I am saying. The refinery is what it is. Nothing has changed. It is the aspect of getting crude. It is the cost of getting crude. It is the placement. It is the realization of the premium. And yes, to the extent that if you are using a lot of liquid fuels, maybe your cost of fuel, cost of operating goes up. But in the broader context of what we have done with both the gasification project as well as we are not using a lot of liquids, for example, for our costs. So all the other variability comes on the back of the other things that I talked to you about.