Weak refining margins will dent quarterly results at Reliance Industries, and a rise in gas production at a field off India's east coast and the resolution of a gas pricing row are key to future performance.

Billionaire Mukesh Ambani-controlled Reliance Industries and Reliance Natural Resources, led by younger brother Anil Ambani, are embroiled in a legal battle over the terms of a deal to sell gas to Reliance Natural at below the price set by the government.

"Most analysts have assumed Mukesh will be able to sell the gas at the government approved price of $4.2 per mmBtu," said R.K. Gupta, managing director of Taurus Mutual Fund.

"If the court decides otherwise, there could be a significant impact on Reliance's future results," said Gupta, whose holdings include several oil and gas stocks, including Reliance.

Reliance Industries, which has interests in oil and gas exploration, petrochemicals, refining and retail, began pumping gas from its find in the Krishna Godavari basin in April, and this was expected to help it offset shrinking refining margins.

But the company has said it is producing only about 60 per cent of its 60 million standard cubic metres a day (mmscmd) capacity, leading to the deferral of $100 million in monthly revenue from May, and a delay in peak gas output of 80 mmscmd by at least a quarter until April.

Reliance Industries imports liquefied natural gas at about $9 per million metric British thermal unit (mmBtu) to power its refinery in western India, a much higher price than if it were allowed to receive gas from its own field.

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