reliance industries q2 results

 

Reliance Industries Q2 FY26 Results: Summary & Key Takeaways

Reliance Industries Limited (RIL), India’s leading conglomerate under Mukesh Ambani, released its Q2 FY26 (July–September 2025) results with a mixed to positive outcome. The company demonstrated resilience across its diversified businesses—oil & chemicals, telecom, and retail—even as margin pressures persisted.

Financial Snapshot

• Gross Revenue / Top-line: RIL’s gross revenue rose nearly 9.9% year-on-year to about ₹2,83,548 crore.

• Net Profit (Consolidated / PAT): The company posted a consolidated net profit of ₹22,092 crore, a growth of ~14.3% from ~₹19,323 crore in the same quarter last year.

• Net Profit Attributable to Owners: For shareholders, the attributable profit stood at ₹18,165 crore, up ~9.7% year-on-year from ₹16,563 crore.

• EBITDA & Margins: Consolidated EBITDA was reported at about ₹50,367 crore, growing ~15% YoY. The EBITDA margin expanded by roughly 80 basis points to ~17.8%.

These robust numbers underscore how Reliance continues to reap benefits from its diversified portfolio and shifting focus toward high-growth consumer and digital segments.

Segmental Performance

1. Oil-to-Chemicals (O2C) Business

• EBITDA Growth: The O2C business recorded ~20.9% YoY growth in EBITDA.

• Drivers: Strong fuel cracks (especially in transportation fuels), along with solid throughput and volume growth in downstream operations, supported the performance.

• Challenges: However, weakness in downstream chemical margins, particularly in polyester and adjacent chains, was a drag. Global oversupply and volatility in raw material prices constrained full upside.

2. Telecom & Digital (Jio / Jio Platforms)

• Revenue & Profit Growth: Jio’s business saw ~14.9% increase in revenues. Net profit for Jio rose ~12.8% to ₹7,379 crore.

• ARPU / User Metrics: Average Revenue Per User (ARPU) improved ~8% to ₹211.4. The subscriber base crossed the 500 million mark, reaching ~506 million users.

• Margin Expansion: Jio’s EBITDA expanded ~17.7% YoY, supported by improved user monetization and operational leverage.

3. Reliance Retail

• Revenue & EBITDA: Retail revenue grew ~18–19% YoY, reaching around ₹90,018–₹79,128 crore (various sources). EBITDA jumped ~16.5% to ₹6,816 crore.

• Store Expansion & Quick Commerce: Reliance added over 400 new stores during the quarter, boosting its total count to ~19,821. The quick hyper-local commerce segment (JioMart) was a standout, with average daily orders growing ~200% YoY.

• Brand Performance: FMCG brands under RIL, such as Campa and Independence, also gained market share.

Balance Sheet, Debt & Cash Flow

• Net Debt: As of September 30, 2025, RIL’s net debt stood at around ₹1.19 lakh crore.

• Capital Expenditure: The company continued to invest in growth areas including digital infrastructure, AI, and green energy transitions.

• Operational Leverage: Reliance’s diversified business mix allowed it to mitigate headwinds in one vertical with gains in others, preserving cash flows and margins.

What Went Well & What Didn’t

Positives

1. Diversification payoff: Reliance’s pivot from purely energy to telecom & retail is bearing fruit.

2. Strong digital & retail traction: Jio’s ARPU growth and retail’s quick commerce expansion are compelling stories for long-term investors.

3. Margin improvements: Across segments (especially telecom, retail), margin expansion added to bottom-line growth.

Risks / Concerns

1. Chemical margin volatility: The polyester and downstream chemical chains remain under stress globally.

2. High debt load: Although manageable, the debt level is being watched closely given macro volatility.

3. Expectation gap: Some analysts believe RIL missed upside expectations due to underperformance in legacy segments.

4. Commodity / input price volatility: The energy and chemicals business is inherently exposed to swings in crude, gas, and petrochemical feedstock prices.

Market Reaction & Guidance

• Post the release, Reliance shares saw modest gains, reflecting investor optimism in the core businesses and future growth engines.

• Market watchers will closely monitor updates on Jio’s IPO, expansion in AI / new energy ventures, and future capex guidance.

• Analyst consensus generally remains positive, citing strong fundamentals and alignment with India’s consumption & digital growth story.

SEO Keywords & Positioning

To enhance visibility, the article includes key SEO terms such as:

• “Reliance Industries Q2 results 2025”

• “Reliance Q2 FY26 earnings”

• “Reliance net profit Q2 growth”

• “RIL segmental performance Q2”

• “Jio ARPU growth Q2”

These keywords are integrated into headings and body text to help with search ranking.

Closing Thoughts

Reliance Industries’ Q2 FY26 results reflect a well-executed balancing act. While its legacy energy and chemicals business face cyclical pressures, the rapid rise of telecom and retail earnings provide a strong counterbalance. For investors, the growing digital asset (Jio) and retail footprint offer a compelling long-term narrative. That said, margin volatility, debt levels, and global commodity cycles are risks to watch.