Are Reliance Industr latest results good or bad?

Reliance Industries has reported its financial results for the quarter ending June 2025, highlighting a mix of operational trends. The company's Profit After Tax (PAT) reached Rs 26,994 crore, reflecting a notable growth of 55% compared to the average PAT of Rs 17,412 crore over the previous four quarters. This quarter's PAT is the highest recorded in the last five quarters, indicating a positive trend in profitability. Additionally, Earnings per Share (EPS) peaked at Rs 19.95, suggesting enhanced returns for shareholders.
However, the company is also facing challenges. The Operating Profit to Interest ratio has declined to 6.10 times, the lowest in five quarters, which may indicate difficulties in managing interest obligations. Interest expenses have risen to Rs 7,036 crore, marking a 14.31% increase quarter-over-quarter. Furthermore, Reliance's Debt-Equity ratio stands at 0.44 times, the highest in recent periods, suggesting increased borrowing to support its operations. The reliance on non-operating income, which constitutes 40.70% of Profit Before Tax, raises concerns regarding the sustainability of this income source.

In summary, while Reliance Industries has shown significant growth in PAT and EPS, it is also grappling with rising interest expenses and a higher Debt-Equity ratio. The company saw an adjustment in its evaluation, reflecting the complexities of its current financial landscape.