Jan 16 Reuters Reliance Industries beat expectations for thirdquarter profit on Thursday, as its retail business benefited from strong festive demand, while its telecom unit was bolstered by higher cellular tariffs and a rise in 5G subscribers.

The Mukesh Ambaniled conglomerate39;s consolidated net profit rose 7.4 to 185.40 billion rupees 2.14 billion in the three months ended Dec. 31.

Analysts on average expected 180.38 billion rupees, according to data compiled by LSEG.

The conglomerate39;s retail unit, its secondbiggest business, reported a near 7 rise in revenue to 795.95 billion rupees, as demand soared in a quarter that coincides with India39;s festive season and accounts for the bulk of retailers39; annual sales.

The retail business ably capitalised on the pickup in consumption amid festive demand during the quarter, Reliance Industries Chairman Mukesh Ambani said in a statement.

Worries around growth in the retail segment had dragged Reliance shares, which fell 6 last year in their first annual drop since 2014.

Reliance Jio Infocomm, its telecom arm, reported a 24.4 rise in quarterly profit at 64.77 billion rupees, as it continues to benefit from tariff hikes initiated last year and as subscribers upgraded to 5G services, Reliance Industries said.

About 12 growth in average revenue per user, a key profit metric, and steady subscriber addition aided the performance, the company said, adding its 5G is on track to surpass 4G traffic.

Revenue from its…