Reliance Industries Reports Mixed Petrochemical Margins in Q1 FY26 Amid Feedstock Price Swings

Reliance Industries Ltd (RIL) posted a mixed performance in its petrochemicals segment for Q1 FY26, as feedstock price volatility and supply-demand shifts influenced product margins. The company reported a 13% year-on-year rise in polypropylene (PP) margins to $360/MT, driven by a 14% drop in Singapore naphtha prices to $561/MT. Polyvinyl chloride (PVC) margins also improved, rising 4% YoY to $385/MT, aided by a sharp 42% decline in EDC prices due to increased availability from strong caustic soda prices. In contrast, polyethylene (PE) margins declined slightly by 1% YoY to $325/MT as excess global supply kept product prices under pressure. Domestic demand trends were mixed. PP demand grew 7.2% YoY on the back of strong uptake in packaging, consumer goods, and automotive sectors, while PE demand dipped 1% primarily from the pipe sector. RIL continued optimizing feedstock cracking between ethane and naphtha to manage costs, as US ethane prices surged 25% YoY to 24.1 cpg in line with rising natural gas prices. Meanwhile, the polyester chain delta fell 9% YoY to $446/MT due to a steep 34% drop in PX deltas, though MEG margins improved on tight Middle East supplies. Looking ahead, RIL expects festive season demand and infrastructure growth to support domestic volumes, with strategic focus on specialty grades and capacity expansion projects.Disclaimer: PolyMart does not offer guarantees regarding the accuracy, reliability, or completeness of the information provided on its platform. Users are advised to independently verify any data before relying on it for decision-making purposes. Source: RiL investor presentation