Reliance Q2 results: Profit surges 16% as all three engines gain steam

Mumbai: Reliance Industries Ltd outlined clear plans for its new-energy ventures—seen as the next growth engines for India’s most valuable company—even as its oil exploration business emerged as a weak link in an otherwise strong September quarter.

Reliance will begin operations at its first solar cell production line in Jamnagar this month, while its solar energy plants at Kutch will start generating power from the first half of 2026-27, the company said in an investor presentation on Friday.

It did not provide a further update on its new-energy giga-complex at Jamnagar. The project is touted to be the world's largest single-location clean energy complex that will turn sand into solar modules, and use the clean power from these modules to generate green hydrogen and run data centres.

Reliance’s fast-moving-consumer-goods business, another key growth driver, saw second-quarter revenue doubling from a year earlier to ₹5,400 crore, placing it ahead of other legacy FMCG companies. The demerger of the FMCG business, which will see it becoming a direct subsidiary of Reliance Industries, is progressing, the company said.

However, production from Reliance Industries’s key Krishna Godavari D6 block fell for a fourth straight quarter.

Overall, Reliance Industries reported a consolidated profit of ₹22,146 crore for the second quarter, up 16% from ₹19,101 crore a year earlier, on the back of improved profitability across all three of its key businesses: oil–to–chemicals (O2C), telecom, and retail. Revenue grew 10% on-year to ₹2.83 trillion, while earnings before interest, tax, depreciation and amortization (Ebitda) grew 15% to ₹50,367 crore.

However, revenue in Reliance’s oil exploration and production business fell 3% to ₹6,058 crore, and Ebitda by 5% to ₹5,002 crore.

“Reliance delivered a robust performance during 2QFY26 led by strong contributions from O2C, Jio, and Retail businesses,” said Mukesh Ambani, chairman and managing director, Reliance Industries. “Consolidated Ebitda registered 14.6% growth on a Y-o-Y basis, reflecting agile business operations, domestic focused portfolio, and structural growth in the Indian economy.”

Oil–to–chemicals: Gaining from fuel cracks

Reliance Industries’s O2C business, which refines crude oil into fuel and other chemicals, benefitted from a sharp growth in fuel cracks—the difference between the price of crude oil and the fuel produced from it—during the quarter. This was due to a fall in crude oil prices and an increase in demand for transportation fuels.

This helped improve Reliance’s gross refining margin (GRM), a key indicator of a refinery's profitability. Every $1 per barrel increase in GRM will translate to a 2% increase in consolidated Ebitda and a 4% increase in net profit for Reliance Industries in 2026–27, as per JP Morgan analysts.

Revenue from the O2C business increased 3% on-year to ₹1.6 trillion in the second quarter, while Ebitda expanded 21% to ₹15,008 crore.

Reliance’s telecom and retail engines

Reliance Industries’ telecom business surpassed 500 million subscribers during the second quarter, while its average revenue per use (ARPU) increased 1% from the April-June period to ₹211.4.

Revenue of Jio Platforms Ltd, which houses Reliance’s telecom business, grew 15% on-year to ₹42,652 crore, while Ebitda grew 18% to ₹18,757 crore.

Jio Platforms, which also houses the company’s digital business, is headed for a public markets debut next year.

Reliance Retail Ventures Ltd, which houses the company’s retail business, reported an 18% increase in revenue to ₹90,018 crore and a 17% increase in Ebitda to ₹6,816 crore. The business benefitted from a reduction in the goods and services tax (GST) rate during the quarter and the start of the festive season.

“These are pretty good numbers. O2C has performed well after a long time, while Jio ARPU was marginally better than market expectations. Fantastic numbers from FMCG,” said Sudip Bandyopadhyay, group chairman at financial services firm Inditrade Capital Ltd.

“I would’ve loved more updates on the new energy business, which they haven’t talked much about,” he added.

Reliance Industries’s stock closed 1.35% higher on BSE on Friday at ₹1,416.95. The benchmark Sensex index ended the session 0.58% higher. The earnings were disclosed post trading hours.