RIL's Q2 numbers: Subdued refining margins are just a temporary blip

Steady outlook for core energy businesses, fast-growing digital services and retail are keeping analysts bullish on earnings trajectory

Reliance Industries’ (RIL’s) September quarter (Q2) numbers were a mixed bag with its retail and digital services (telecom; Jio) businesses continuing to post strong growth, while its core refining business performance was a bit disappointing amid high expectations.

While the street was expecting the per barrel gross refining margins (GRM) to trend down to about $10 from $12 a year ago and $10.5 in previous quarter, it came even lower at $9.5 for Q2. Softness in benchmark Singapore GRM, maintenance shutdown at RIL’s refinery and sequential decline in light-heavy crude oil price differential were reasons for the lower number. Analysts,