RIL Q1 FY27: Polymer Margins Strengthen Despite 22% Decline in Domestic Demand

PolyMart Market Insights | 18 July 2026 Reliance Industries Limited (RIL) reported a resilient performance in its Oil-to-Chemicals (O2C) business during Q1 FY27 , as stronger polymer margins offset a significant slowdown in domestic demand. Improved product spreads, supply disruptions in the Middle East, and operational flexibility helped support profitability across the polymer value chain despite challenging market conditions. The O2C business recorded Revenue of ₹2,01,803 crore, up 30.4% YoY , while EBITDA increased 17.2% YoY to ₹17,010 crore . The EBITDA margin stood at 8.4%, compared with 9.4% in Q1 FY26 . Polymer Performance Polyethylene (PE) Average Margin: USD 474/MTMargin Growth: ▲46% YoYDomestic Demand Growth: ▼31% YoY Polypropylene (PP) Average Margin: USD 372/MTMargin Growth: ▲3% YoYDomestic Demand Growth: ▼20% YoY Overall, India's domestic polymer demand declined by 22% YoY during the quarter, reflecting cautious buying activity across downstream industries. Market Analysis - Stronger PE and PP margins indicate that global supply disruptions and higher feedstock costs continued to support polymer pricing despite softer domestic demand. - The sharp decline in domestic polymer consumption suggests that processors and converters remained focused on need-based procurement, limiting inventory buildup. - The contrast between improving international margins and weak domestic demand highlights a market driven more by supply-side constraints than by consumption growth. - Going forward, global supply conditions, crude oil prices, feedstock costs, and the pace of domestic demand recovery will remain the key factors influencing polymer price direction.PolyMart - Procure With Purpose 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.