Reliance Industries Q2 profit jumps 33.8 per cent to record Rs 29,550 crore

MUMBAI: Reliance Industries (RIL) delivered its strongest quarterly earnings performance in the second quarter of FY27, powered by a sharp recovery in refining margins, growth in digital services and steady retail activity.

The energy-to-telecom conglomerate reported record consolidated gross revenue of Rs 3,62,268 crore for the quarter ended 30 September 2026, up 27.8 per cent year on year. Consolidated EBITDA rose 23.9 per cent to a record Rs 62,409 crore, while profit after tax (PAT) increased 33.8 per cent to an all-time high of Rs 29,550 crore.

For the first half of FY27, PAT crossed Rs 50,000 crore to reach Rs 52,746 crore.

O2C leads the earnings surge

The Oil-to-Chemicals (O2C) business was the biggest contributor to quarterly growth, benefiting from stronger refining margins amid global supply disruptions.

Dated Brent crude averaged $97 a barrel, up 40.6 per cent year on year, as supply constraints around the Strait of Hormuz and pipeline disruptions in Saudi Arabia tightened crude availability.

O2C gross revenue rose 44.2 per cent to Rs 2,31,601 crore, while segment EBITDA surged 67.9 per cent to a record Rs 25,203 crore.

Refining margins strengthened across transportation fuels. Gasoline 92 RON cracks increased 196 per cent to $24.9 a barrel, while gasoil 10-ppm cracks climbed 252 per cent to $65.8 a barrel. Jet fuel and kerosene cracks rose 268 per cent to $59.3 a barrel.

Petrochemical margins also improved. The polyester chain delta reached a three-year high of $573 per metric tonne, up 33 per cent, supported by stronger paraxylene and purified terephthalic acid margins.

O2C throughput stood at 20.6 million metric tonnes, with production for sale at 18.1 million metric tonnes. Exports increased 46.9 per cent to Rs 1,04,250 crore, as the company redirected light distillates to East and South Africa and middle distillates to Europe, Latin America and West Africa.

Jio Platforms marks IPO milestone

Jio Platforms Limited (JPL) completed its initial public offering on 28 October 2026, raising Rs 30,188 crore through a fresh issue of 270 million shares. The offer was subscribed more than 22 times, and the company made its market debut as India’s second most valuable listed company, according to the figures provided.

JPL deployed Rs 27,500 crore of the net proceeds towards prepayment of external commercial borrowings.

The digital services business continued to expand, with EBITDA rising 17.7 per cent year on year to Rs 22,223 crore. JPL standalone revenue increased 11.3 per cent to Rs 47,485 crore, while its EBITDA margin widened 250 basis points to 54.1 per cent.

Jio’s total customer base reached 542.4 million, following net additions of 9.1 million during the quarter. Its 5G mobility base crossed 300 million, adding 66 million users over the past 12 months and accounting for around 56 per cent of wireless traffic.

Fixed broadband subscribers reached 30 million, including 15.1 million Jio AirFiber connections. Monthly data consumption per user increased 14.2 per cent to 44.2 GB, taking total data traffic to 71.3 billion GB, up 22.1 per cent. Average revenue per user rose to Rs 218.8 a month.

JioStar’s streaming platform JioHotstar averaged around 440 million monthly active users, up 10 per cent year on year, following its launches in Singapore, the UK and Canada. Bigg Boss attracted more than 90 million viewers across six regional editions in its first three weeks.

Retail grows despite festive calendar shift

Reliance Retail Ventures Limited (RRVL) reported gross revenue of Rs 91,716 crore, up 6.4 per cent year on year after adjusting for the demerger of the consumer brands business.

The business recorded 7 per cent growth in transaction volumes across its 19,947 stores, covering 77.5 million square feet. The performance came despite several major festive shopping weeks shifting into the third quarter.

EBITDA before a one-time impairment charge of Rs 108 crore stood at Rs 6,228 crore, with a margin of 7.8 per cent. The margin was lower by 120 basis points, reflecting planned investment in digital commerce expansion and the absorption of input costs.

JioMart recorded 42 per cent revenue growth, supported by a 24 per cent increase in units per order and free delivery incentives. Its network spans more than 5,000 stores across over 1,000 towns.

Oil and gas production remains steady

The oil and gas exploration and production segment reported revenue of Rs 6,020 crore.

Lower production from the KG-D6 block and weaker price realisations weighed on performance. KG-D6 gas volumes fell 9 per cent year on year to 57.8 billion cubic feet equivalent, while realised prices declined to $8.88 per million British thermal units from $9.97 a year earlier.

The impact was partly offset by a 21.4 per cent increase in coal-bed methane production to 3.4 billion cubic feet equivalent, with realised prices rising to $13.24 per million British thermal units.

Segment EBITDA stood at Rs 4,901 crore, translating into a margin of 81.4 per cent.

Capital expenditure and debt position

RIL spent Rs 38,153 crore on capital expenditure during the quarter, primarily across its O2C operations, new energy projects and consumer infrastructure.

Cash and cash equivalents stood at Rs 2,67,812 crore as of 30 September 2026. Net debt declined to Rs 1,17,140 crore from Rs 1,22,914 crore at the end of the first quarter. The annualised net debt-to-EBITDA ratio improved to 0.47 times.

The debt-to-equity ratio stood at 0.41 times, while the interest service coverage ratio was 5.55 times and the current ratio was 1.13 times.

The quarterly performance reflects the strength of RIL’s diversified portfolio, but the earnings mix remains significant. O2C supplied the sharpest growth, while digital services and retail extended the contribution from consumer-facing businesses. The next test will be whether refining margins hold up and the newer digital and retail investments sustain their momentum through the second half of FY27.