Reliance Industries reported a 78% year-on-year surge in consolidated net profit for the June-ended quarter, reaching ₹26,994 crore compared to ₹15,138 crore in Q1 FY 2025, comfortably surpassing analyst expectations (mint). This impressive jump underscores the company’s ability to generate both operational scale and strategic capital gains, reinforcing its dominant position across diversified business verticals in India.
Financial Snapshot
- Consolidated Net Profit (PAT): ₹26,994 crore — up 78% YoY (₹15,138 crore)
- Street Estimates: Consensus anticipated around ₹19,859 crore, highlighting the magnitude of the outperformance
- Revenue from Operations: ₹2,48,660 crore — a 5.3% YoY rise from ₹2,36,217 crore
- Gross Revenue: ₹2,73,252 crore — up approximately 6% YoY (mint)
- EBITDA: ₹58,024 crore — up 36% YoY; margins at 21.2% (+460 bps YoY)
Segment-Wise Performance Analysis
1. Oil-to-Chemicals (O2C)
Despite lower volumes due to maintenance and subdued crude prices, strong refining margins and petrochemical spreads drove EBITDA growth:
- EBITDA increased by 10.8% YoY to ₹14,511 crore (mint)
- Revenue was slightly down (~1.5% YoY) at ₹154,804 crore due to planned shutdowns (mint)
2. Jio Platforms (Digital & Telecom)
RIL’s digital arm continued to shine:
- Net Profit: ₹7,110 crore, up 25% YoY (mint)
- Revenue: ₹41,054 crore, up 19% YoY (mint)
- EBITDA surged 23.9% YoY to ₹18,135 crore with margins at ~51.8%
- 5G subscribers crossed 200 million, demonstrating strong market adoption
- ARPU improved to ₹208.7–208.8 (mint)
- JioAirFiber users: 7.4 million; JioGames: 3 million registered users
3. Reliance Retail
Strong growth with increasing margins:
- Revenue: ₹84,171 crore — up 11.3% YoY (mint)
- EBITDA: ₹6,381 crore — up 12.7% YoY; retail posted industry-leading margins
- Customer base rose to 358 million, with 388 new stores added, totaling 19,592 outlets
4. Oil & Gas (E&P)
A modest decline in exploration & production revenue:
- E&P revenue: ₹6,103 crore, down 1.2% YoY
- EBITDA pressures attributed to natural field production declines
5. Jio-bp Fuel Retail & Media
- Jio-bp fuel network expanded to 1,991 outlets, with transport fuel growth of 35% (mint)
- JioStar (Hotstar) revenue: ₹11,222 crore; EBITDA: ₹1,017 crore — boosted by IPL season with over 1 billion app downloads and 460 million+ MAUs (mint)
One-Time Gains & Strong Other Income
Reliance recorded a one-time gain of ₹8,924 crore from the sale of its stake in Asian Paints, part of a larger ₹89.24 billion of investment income (mint). Excluding this, the underlying PAT still surged approximately 25% YoY, demonstrating healthy core profitability (mint).
Leadership Commentary
- Mukesh Ambani (Chairman & MD): Highlighted that the business is on track to “double every‑4 to‑5 years”, as a result of strong performance, ongoing investments, and innovation (mint).
- Emphasized that RIL will play a central role in India’s development through technology, inclusive growth, and energy transition (mint).
- Anshuman Thakur (SVP, Jio Platforms): Called JioPC deployment a solution to India’s remaining digital divide; JioGames and JioMart highlighted for their rapid user adoption .
- Dinesh Taluja (CFO, Reliance Retail): Noted JioMart as “the fastest-growing digital app in India”, with grocery orders up 68% QoQ .
Balance Sheet & Capital Allocation
- Gross Debt: ₹3.38 lakh crore, reduced from ₹3.48 lakh crore in Q4 FY 2025
- Net Debt / LTM EBITDA: Under 1x, indicating a strong financial position (mint)
- Capex: Focused on new energy and digital infrastructure, with ₹29,875 crore (~$3.5 billion) spent in the quarter (mint)
- RIL targets self-funding of the new energy business through strategic tie-ups and off-take agreements (mint)
Outlook & Growth Drivers
- Energy Transition: While traditional O2C volumes are under pressure, expanding refineries and petrochemical margins continue to support growth.
- Digital Momentum: With over 200 million 5G users, growing ARPU, and expanding services (JioPC, JioGames, JioAirFiber), Jio is well positioned for further scale and monetization.
- Retail Expansion: The acquisition of brands like Kelvinator and new tech-enabled platforms (AJIO Rush, JioMart) are driving omni-channel revenue growth.
- New Energy Ventures: RIL’s ambition to scale giga-factories for solar, batteries, and hydrogen, backed by strong capex and debt metrics, shows the pivot from fossil fuels.
- Media & Fuel Retail: IPL, streaming growth, and the growing fuel network provide supplementary revenue and margin tailwinds.
Analysts in the market are upbeat:
- JM Financial maintains a “Buy” rating, projecting a 15–20% EPS CAGR over 3–5 years, with both digital and retail playing key roles (mint).
- Kotak Institutional Equities highlights a ~14.7% YoY EBITDA growth across core segments, led by O2C, digital, and retail (mint).
Market Reaction
- RIL stocks slightly corrected, closing flat–negative, dipping just 0.02% to ₹1,476.85 on July 18 — outperforming peers in a cautious market (marketwatch.com).
- Year-to-date, RIL has rallied by ~20%, adding $40 billion to its market cap, marking its strongest run relative to the broader Nifty 50 in five years (The Times of India).
- Technical indicators: Stock trades ~7% below its 52‑week high (₹1,589.50) and near its P/E range of ~28–57 depending on the metric used (marketwatch.com).
Key Takeaways (Google Post Snippets)
- Mega-Profit Jump: Consolidated PAT jumped 78% YoY to ₹26,994 crore thanks to strong segment performances and stake sale gains.
- Operational Strength: EBITDA surged 36% YoY; margins at 21.2%, signaling efficient operations.
- Digital & Retail Engine: Jio (25% YoY profit growth) and Retail (11% revenue, 13% EBITDA growth) led the performance.
- 5G Momentum: Over 200 million 5G subscribers — Jio is consolidating its digital leadership in India.
- Debt Discipline: Net debt-to-EBITDA <1x, while capex of ₹29,875 crore indicates focus on growth.
- Leadership Vision: Ambani twice highlighted the plan to double every 4–5 years, with new energy as a key pivot.
- Market Confidence: Stock outperformed peers, adding $40B to market cap, while maintaining manageable valuation.
Reliance Industries kicked off FY 2026 with a stellar quarter – a powerful mix of operational expansion, digital disruption, retail acceleration, and new energy ambition. The 78% YoY profit growth and strong other‑income gains highlight not just scale but strategy in action. As RIL continues to innovate across energy, telecom, and retail, the journey toward doubling every 4–5 years now feels firmly within sight.
