Mukesh Ambani’s Reliance Industries missed quarterly profit estimates on Friday, hurt by higher expenses and weak performance at its oil and gas segment.

The unit’s performance was hit by weaker output and softer price realisations from its KG-D6 fields in Andhra Pradesh, a key source of domestic gas supply.

The flagship deep-water block in the Krishna-Godavari basin, developed with BP, once met a significant share of India’s gas demand but has seen production decline over the years as reservoirs matured and pressures fell.

Third-quarter average realised prices for KGD6 gas edged down from a year earlier, while prices for coal-bed methane gas fell more sharply, squeezing revenues.

Consolidated net profit of ₹18,645 crore, or ₹13.78 per share, in October-December compared with ₹18,540 crore, or ₹13.70 per share, a year back. The numbers missed analysts’ average estimate of ₹19,644 crore, according to data compiled by LSEG.

Revenue from operations rose to ₹2.69 lakh crore from ₹2.43 lakh crore in October-December 2024. Pre-tax profit or EBITDA grew 6.1 per cent to ₹48,003 crore.

“Reliance’s consolidated performance in the third quarter reflects consistent financial delivery and operational resilience across businesses,” said Mukesh Ambani, RIL chairman and managing director, in a statement on Friday.

Revenue from the oil and gas segment fell 8.4 per cent in the quarter ended December 31, while core earnings declined 12.7 per cent, largely due to higher operating costs linked to maintenance activities.

The company, which has been considering an initial public offering this year for its digital unit Jio Platforms, said core earnings from the unit rose 16.4 per cent.

Revenue from the company’s oil-to-chemicals segment rose 8.4 per cent and core earnings climbed 14.6 per cent.

Robust growth in the O2C business was led by significantly higher fuel margins with favourable demand-supply dynamics, along with operational flexibility.