Reliance Industries Limited (RIL) has warned in its FY26 annual report that there may be huge fluctuations in the global oil market in the financial year 2026-27. According to the company, high crude oil prices, global economic slowdown and ongoing geopolitical tensions in the Middle East can affect both oil demand and supply. However, Reliance has expressed confidence that businesses related to natural gas, green chemicals and energy transition will provide new strength to the company’s profits in the coming years.
Reliance Industries has said that the FY27 environment will be extremely sensitive to geopolitical and policy risks. According to the company, there may remain pressure on the supply chain due to the ongoing tension in the Middle East and damage to the refinery infrastructure. Due to this, we may see continuous fluctuations in the prices of oil and petroleum products in the international market. The company also said that if the pace of the global economy remains slow then the increase in demand for oil may remain limited. This may impact refining margins and petrochemical business.
Pressure may also increase due to government policies
Reliance also mentioned some policies of the Government of India in its report. According to the company, decisions like Special Additional Excise Duty (SAED), rules related to the use of petrochemical feedstock and duty exemption on some products can impact domestic refining margins. Experts believe that increasing competition and policy-based changes at the domestic level can become a challenge for energy companies in the future.
Gas business will become growth engine
Despite the uncertain environment, Reliance is quite optimistic about its gas business. The company said that India is rapidly moving towards clean energy and natural gas will play an important role in this change. According to the report, the share of natural gas in India’s energy mix may increase from the current 6% to 15% by 2030. Reliance claims that it contributes about 30% to the country’s domestic gas production, due to which it will directly benefit from this increasing demand. The company said that its deepwater and coal bed methane (CBM) projects will help in increasing gas supply in future. Based on the existing infrastructure and operational efficiency, the company is expecting strong performance in FY27 and beyond.
Focus will be on green chemicals
Reliance said that now its focus is on creating a completely integrated and self-reliant platform. The company is working on expansion plans in the business related to green chemicals and sustainable energy. Reliance believes that in the coming decades, huge opportunities will arise in the energy transition and green fuel sector, which will give a new direction to the company’s earnings.
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