Reliance Industries Reports ₹18,165 Crore Net Profit in Q2 FY26, Reflecting 10% Year-on-Year Growth
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| Reliance Q2 FY26 Results – ₹18,165 Cr Profit | 10% YoY Growth |
Solid Growth Across Diverse Business Segments
Reliance Industries Limited (RIL), India’s largest private conglomerate, has reported a consolidated net profit of ₹18,165 crore for the second quarter of FY26, marking a growth of approximately 10 percent compared to the same period last year. The performance, disclosed in the company’s regulatory filings and investor presentation released on Saturday, highlights the resilience of its integrated business model spanning energy, petrochemicals, retail, digital services, and new-energy initiatives.
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The company’s consolidated revenue from operations stood at ₹2.45 lakh crore, representing a 6.5 percent increase from ₹2.30 lakh crore in Q2 FY25. This rise was driven primarily by strong growth in the consumer-centric segments — Reliance Retail and Jio Platforms Limited (JPL) — which continued to offset volatility in the traditional Oil-to-Chemicals (O2C) business.
Chairman Mukesh Ambani attributed the robust performance to the company’s ability to maintain its leadership across multiple verticals, emphasizing that each arm of the group has been structured to deliver long-term, sustainable value. He noted that Reliance’s consumer businesses now contribute more than 50 percent of consolidated EBITDA, marking a historic shift for a company once dominated by refining and petrochemical operations.
Operational metrics reflected steady expansion: Reliance Retail posted record quarterly revenue of ₹85,200 crore, up 17 percent year-on-year, while Jio Platforms crossed a subscriber base of 491 million with average revenue per user (ARPU) rising to ₹189. These figures underscore Reliance’s continued dominance in the Indian consumer market and its capacity to generate cash flows to fund new ventures.
The energy and O2C segment, although facing global margin pressure amid fluctuating crude prices, still delivered a stable EBITDA of ₹13,870 crore. This demonstrates that Reliance’s upstream and downstream integration remains a significant strategic advantage in volatile markets.
Overall, RIL’s strong Q2 FY26 results reaffirm its position as India’s most valuable corporate entity and a benchmark for diversified industrial leadership.
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Read the latest update on Reliance Industries’ Q2 FY26 earnings highlighting a net profit of ₹18,165 crore and strong growth across Retail and Jio Platforms. Discover how Reliance’s performance is shaping the broader market outlook in India’s corporate sector. ➤ Read Full Report
Digital and Retail Businesses Drive Profitability
The largest contributors to profit growth were the digital and retail arms, which have become Reliance’s primary growth engines in the post-pandemic era. Jio Platforms Limited (JPL) — the telecom and digital subsidiary — continued its momentum with a revenue increase of 12 percent year-on-year to ₹31,240 crore. This growth was supported by higher data usage and steady subscriber accretion, despite intense competition in the telecom market.
Jio’s network capacity expansion and 5G rollout continued at a rapid pace, covering 98 percent of India’s population as of September 2025. The company emphasized its focus on “JioAirFiber,” a fixed-wireless broadband solution targeting 50 million homes by 2026. JPL’s ARPU improvement was driven by premium plans and an uptick in enterprise services, reflecting its transition from a pure telecom player to a digital ecosystem provider.
Reliance Retail Limited recorded another stellar quarter, with revenue and EBITDA growing 17 percent and 21 percent respectively. Its store count crossed 19,700 locations nationwide, spanning fashion, grocery, consumer electronics, and luxury formats. The company also reported a surge in digital commerce transactions and same-store sales growth of 8 percent, supported by festive season buying and supply-chain optimization.
Analysts have noted that the retail business alone is now valued by the market at over $110 billion, putting it on par with some of the world’s largest consumer companies. Reliance’s entry into new formats such as QuickMart and its expansion into the pharma and wellness segment signal a broader ambition to build a fully integrated consumer ecosystem.
Both digital and retail businesses accounted for nearly 60 percent of group EBITDA in Q2, a structural shift from the energy-centric model that defined Reliance two decades ago. This shift is being seen by investors as a key driver for valuation re-rating and sustainability in earnings growth beyond the commodities cycle.
The strong performance in these segments has also enabled Reliance to pursue new-energy projects without placing strain on its balance sheet or debt metrics, which remain among the healthiest in the industry.
Reliance Industries – Quarterly Revenue & Net Profit Trend (₹ Crore)
Oil-to-Chemicals Segment Faces Margin Pressure
The traditional Oil-to-Chemicals (O2C) business — historically Reliance’s core revenue engine — faced headwinds this quarter due to fluctuations in crude prices and muted refining margins. Segment revenues declined marginally by 3 percent to ₹1.25 lakh crore, reflecting lower product crack spreads and a global slowdown in polymer and polyester demand.
Despite the downturn, the O2C division delivered an EBITDA of ₹13,870 crore, supported by optimized feedstock procurement and higher exports to Southeast Asia and Africa. The segment’s EBITDA margin remained steady at around 11 percent, underscoring Reliance’s operational discipline and scale advantage in complex refining operations.
Industry experts observe that Reliance’s refinery at Jamnagar continues to rank among the most complex and efficient facilities in the world. The company has been gradually transitioning to a more chemical-centric product mix to capture value from the global shift towards sustainable materials and bio-feedstock.
In his statement, Mukesh Ambani acknowledged that volatility in energy markets remains a challenge but highlighted that Reliance’s integration model — spanning refining, petrochemicals, and retail fuels — provides a natural hedge against commodity price cycles. He reaffirmed the group’s commitment to carbon reduction and energy transition investments as part of its Vision 2035 roadmap.
As a part of its energy transition effort, Reliance is developing a massive integrated renewable energy hub in Jamnagar, which will include solar panel manufacturing, green hydrogen plants, and battery storage systems. These initiatives are expected to begin commercial operations between 2026 and 2028, potentially transforming Reliance into a major clean energy player.
Although short-term margin pressures persist, the long-term outlook for the O2C business remains stable as Reliance continues to invest in innovation, efficiency, and downstream integration.
Financial Strength and Strategic Direction
Reliance Industries maintained a strong balance sheet position throughout the quarter, with a net debt-to-EBITDA ratio of 0.8 — among the lowest in its peer group. Gross debt stood at ₹3.25 lakh crore, offset by cash and equivalents of ₹1.8 lakh crore. The company continued to generate robust operating cash flows and invested over ₹18,000 crore during the quarter in expansion and new projects.
Reliance’s capital expenditure was directed toward telecom network upgrades, renewable energy initiatives, and retail infrastructure. The management reaffirmed its target of reducing carbon intensity by 50 percent by 2035 and achieving net zero by 2040. It also highlighted plans for strategic partnerships in battery technology and biofuels to accelerate its green transition.
Shareholders welcomed the results as Reliance shares rose 2.4 percent on the BSE following the announcement. Analysts from brokerages including Motilal Oswal, JP Morgan, and Goldman Sachs raised their target prices, citing improving earnings visibility and valuation upside driven by the consumer business expansion.
The company’s board approved an interim dividend of ₹9 per share and authorized the issuance of non-convertible debentures worth ₹10,000 crore to fund growth initiatives. Reliance also announced plans to list its renewable energy arm within two years, subject to regulatory approvals and market conditions.
According to CFO V. Srikanth, “Reliance will continue to invest prudently in high-growth areas while maintaining financial discipline. Our diversified portfolio offers resilience against macro headwinds and positions us well for sustained value creation.”
These developments indicate a strategic continuity that balances innovation and risk management — key hallmarks of Reliance’s corporate strategy for over four decades.
Market Reaction and Expert Commentary
The financial community reacted positively to Reliance’s Q2 numbers, interpreting them as a signal of broad-based earnings recovery across India’s largest corporates. Brokerages highlighted the company’s ability to sustain profitability despite macro uncertainties and sectoral headwinds.
Motilal Oswal Securities maintained its “Buy” rating, citing upside potential driven by the consumer business momentum and new energy projects. “Reliance is transitioning into a hybrid energy and technology conglomerate. This diversification enhances earnings stability,” the broker noted in its report.
Goldman Sachs raised its price target to ₹3,400 per share, pointing to the company’s potential to deliver double-digit EPS growth through FY28. It highlighted Jio’s expanding enterprise segment and Retail’s integration of AI-driven supply chains as key drivers of margin expansion.
Market analysts also observed that Reliance has consistently delivered positive earnings surprises for six consecutive quarters. This record underlines its operational consistency in a volatile economic landscape dominated by interest rate hikes and geopolitical uncertainties.
Investors view Reliance as a proxy for India’s economic growth, given its presence across sectors ranging from energy and infrastructure to retail and technology. The latest results reinforce confidence that the company will continue to outperform both domestically and globally as it adapts to new market realities.
As per Bloomberg data, over 92 percent of analysts tracking Reliance currently recommend a “Buy,” placing it among the most favoured blue-chip stocks on Dalal Street.
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