The oil-to-chemicals segment posted a 67.9% year-on-year EBITDA rise to ₹25,203 crore as refinery outages in Russia and the Middle East squeezed global fuel supplies. Rising crude prices and tight inventories lifted transportation fuel prices by 50% to 78%, while downstream chemicals advanced by up to 35%. To bypass regional supply hazards and maintain peak processing runs, Reliance restructured its feedstock logistics by importing crude from North America, Latin America, and the Mediterranean. These strategic shifts helped offset domestic fuel under-recoveries and special additional excise duties that partially capped overall profitability.
Key points
Extreme supply shortages in key transit corridors substantially widened refining margins…: Extreme supply shortages in key transit corridors substantially widened refining margins and escalated global energy prices.
Operating profitability faced significant friction from freight rates that spiked between…: Operating profitability faced significant friction from freight rates that spiked between 15 and 20 times normal levels.
Strategic diversification toward alternative crude suppliers across the Americas and the…: Strategic diversification toward alternative crude suppliers across the Americas and the Mediterranean preserved record refinery run rates.
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O2C revenue rose 44.2% year-on-year to ₹2.32 lakh crore in the second quarter of FY27, driven largely by higher energy prices. Crude oil prices increased 40.6% from a year earlier, while transportation fuel prices rose 50-78%. Prices of most downstream chemical products increased 25-35%, according to the company’s results statement.
Also Read: Reliance looks to Latin America, North America and the Mediterranean as Middle East oil disruptions put supply chains under pressure
The segment’s earnings before interest, tax, depreciation and amortisation (EBITDA) climbed 67.9% to a record ₹25,203 crore. Reliance attributed the increase to exceptionally strong transportation fuel cracks — the difference between the price of refined fuel and the cost of crude oil used to produce it — and improved downstream chemical margins.
Fuel cracks rose three to 3.7 times from a year earlier, reaching historic highs during the quarter. Disruptions to supplies through the Strait of Hormuz, refinery outages in the Middle East and Russia, and lower inventories tightened fuel availability in global markets. The company reported that Singapore-region gasoline, diesel and jet fuel cracks rose sharply year-on-year.
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