How Did Reliance Industries Deliver Double-Digit Profit Growth Despite QoQ Weakness in Q2 FY26?
Reliance Industries Limited (RIL) reported its Q2 FY26 results showcasing resilient revenue growth and broad-based EBITDA expansion across its key verticals—O2C, Jio Platforms, and Reliance Retail. The company maintained strong operating momentum despite a sequential decline in profit due to one-off adjustments and elevated finance costs.
Consolidated revenue increased 9% year-on-year to ₹2.54 lakh crore, with EBITDA improving 15% YoY to ₹45,885 crore. Net profit rose 10% YoY to ₹18,165 crore, surpassing market estimates, even as quarterly profit dipped 33% sequentially due to seasonal O2C softness and tax adjustments.
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Reliance Industries Q2 FY26 Consolidated Performance
| Metric | Q2 FY26 | YoY / QoQ Change |
|---|---|---|
| Revenue | ₹2.54 Lakh Cr | ↑ 9% YoY | ↑ 5% QoQ |
| EBITDA | ₹45,885 Cr | ↑ 15% YoY | ↑ 8% QoQ |
| Net Profit | ₹18,165 Cr | ↑ 10% YoY | ↓ 33% QoQ |
| EBITDA Margin | 18.02% | ↑ from 17.2% YoY |
| Net Debt | ₹1.18 Lakh Cr | ↑ 1% QoQ |
The results reflected strong execution across the consumer-facing businesses and continued investment in digital and energy platforms. Management noted margin improvement due to higher O2C spreads and cost efficiencies in Retail and Jio.
Segment-Wise Highlights for Q2 FY26
- O2C EBITDA up 20.9% YoY at ₹15,008 Cr; margins improved 130 bps.
- Jio Platforms EBITDA rose 17.7% YoY to ₹18,757 Cr with 506 Mn subscribers.
- Retail EBITDA increased 16.5% YoY to ₹6,816 Cr; strong growth in grocery and fashion segments.
- Oil & Gas EBITDA dipped 5.4% YoY due to lower KGD6 output.
Reliance’s capital expenditure during the quarter stood at ₹40,010 crore, primarily towards Jio 5G rollout, retail expansion, and clean energy projects. The company continues to advance its digital, consumer, and green energy ecosystems to drive multi-year growth.
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Jio, Retail, and O2C Business Metrics
| Business | Revenue | EBITDA / Growth |
|---|---|---|
| Jio Platforms | ₹36,332 Cr | EBITDA ₹18,757 Cr | ↑ 17.7% YoY |
| Reliance Retail | ₹79,128 Cr | EBITDA ₹6,816 Cr | ↑ 16.5% YoY |
| O2C Segment | ₹1.61 Lakh Cr | EBITDA ₹15,008 Cr | ↑ 20.9% YoY |
| Oil & Gas | ₹6,058 Cr | EBITDA ₹5,002 Cr | ↓ 5.4% YoY |
Chairman Mukesh Ambani highlighted strong synergy across Jio, Retail, and New Energy platforms, calling FY26 a pivotal year for expansion and AI-led innovation. The company continues to maintain leadership in telecom, retail, and refining segments while pursuing long-term sustainability goals.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that Reliance Industries’ Q2 FY26 performance underscores broad-based strength across verticals, solid cash flow generation, and a balanced capex strategy. The steady earnings trajectory positions the company favorably for FY26 re-rating amid robust consumer and energy demand.
Discover more expert analysis and insights at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on Reliance Performance
- How Did Reliance Industries Beat Street Estimates in Q2 FY26?
- What Are the Key Growth Drivers for Reliance’s Retail and Jio Businesses?
- How Is Reliance Balancing Its Energy and Consumer Growth Strategy?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
