Reliance Industries Q1 Results: Revenue tops ₹3 lakh crore; profit slips 22%

The retail segment's profit dropped 14.2% YoY to ₹2,806 crore, while revenue from operations increased by 8.2% YoY. EBITDA declined 1.1% YoY, and EBITDA margin shrank 80 bps YoY due to the growing contribution of digital commerce to revenue and associated infrastructure investments, which increased fixed costs, as per the company.

Reliance Retail's total store count increased to 20,169 by Q1FY27 from 20,160 by the end of Q4FY26.

"Reliance Retail delivered resilient growth this quarter, with steady performance across all consumption formats and channels. Our omni-channel presence continues to serve millions of Indian consumers, and I am confident that it is well placed to benefit from India’s long-term consumption growth," said RIL Chairman.

Continued gains in subscriber base, organic ARPU (average revenue per user) growth and scale-up of digital services drove Jio Platforms' earnings in Q1FY27.

Jio Platforms' revenue from operations rose by 11.8% YoY to ₹39,173 crore, while profit saw a 9.2% YoY rise to ₹7,764 crore. EBITDA jumped 15.1% YoY, and EBITDA margin climbed 150 bps YoY.

ARPU increased to ₹215.6 from ₹208.8 YoY and ₹214 QoQ with better subscriber mix and positive seasonality, partly impacted by promotional schemes for fixed broadband customers.

Per capita data consumption was 43.7 GB/month with total data traffic growth of 26.9% YoY during Q1FY27.

Despite reporting revenue from operations above ₹3.11 lakh crore for the first time, Reliance Industries' net profit declined on a year-on-year basis largely due to the high base of the corresponding quarter last year. The June quarter of FY26 had included a one-time gain from the sale of the company's stake in Asian Paints, which had significantly boosted earnings.

Excluding that exceptional gain, the underlying operational performance remained supported by strong growth in the oil-to-chemicals (O2C), digital services and retail businesses.

Reliance Industries reported broad-based growth across its key business segments during the June quarter, led by strong performances in its oil-to-chemicals (O2C) and digital businesses.

The O2C segment remained the largest contributor, with revenue rising 30.4% year-on-year to ₹2,01,803 crore from ₹1,54,804 crore, while segment EBITDA increased 17.2% YoY to ₹17,010 crore. Digital Services also delivered a robust quarter, with revenue growing 11.2% YoY to ₹46,900 crore, while EBITDA climbed 16% to ₹21,255 crore, supported by continued subscriber additions and higher average revenue per user (ARPU).

Reliance Retail posted steady growth, with revenue increasing 7.4% YoY to ₹90,409 crore, although segment EBITDA declined marginally to ₹6,309 crore from ₹6,381 crore a year ago.

Meanwhile, the Oil & Gas business reported revenue of ₹6,298 crore, broadly unchanged from ₹6,103 crore in the corresponding quarter last year, while EBITDA slipped slightly to ₹4,973 crore from ₹4,996 crore.

The Others segment continued to witness healthy momentum, with revenue surging to ₹31,204 crore from ₹18,470 crore and EBITDA easing to ₹1,856 crore from ₹2,589 crore.

Overall, total segment EBITDA rose 9.9% year-on-year to ₹51,403 crore, compared with ₹46,789 crore in the year-ago quarter, reflecting healthy operating performance across the group's diversified businesses.

Reliance Industries Ltd (RIL) reported a mixed performance for the June-ended quarter (Q1 FY27), with revenue registering healthy growth while profit declined on a year-on-year basis.

The oil-to-telecom-to-retail conglomerate posted revenue from operations of ₹3,11,850 crore, up 10.6% from ₹2,84,660 crore in the corresponding quarter last year and 4.4% higher than ₹2,98,621 crore reported in the March quarter.

Profit after tax (PAT) stood at ₹20,946 crore, declining 22.4% year-on-year from ₹26,994 crore, but improving 11.6% sequentially from ₹20,616 crore.

Meanwhile, net profit attributable to the owners of the company came in at ₹20,946 crore, down 22.4% YoY from ₹26,994 crore, while rising 23.4% QoQ from ₹16,971 crore. Profit before tax (PBT) increased to ₹30,630 crore from ₹27,195 crore in the March quarter but remained below the ₹37,146 crore reported a year ago.

The promoters of Reliance Industries Ltd (RIL), India's most valuable company by market capitalisation, increased their stake during the June quarter, taking their holding to the highest level in more than seven years.

According to the latest BSE shareholding data, the combined stake of the promoter and promoter group rose to 50.5% at the end of the June quarter, up from 50% at the end of the March quarter.

The increase comes after the promoters' holding remained unchanged at 50% for three consecutive quarters and marks their highest ownership level since September 2019. The increase comes at a time when the company’s shares are on track for their worst annual performance since 2011.

Shares of Jio Financial Services Ltd (JFSL) climbed over 3 per cent on Friday after the firm reported more than twofold jump in consolidated net profit at ₹830 crore for June quarter FY27.

The company reported a consolidated net profit of ₹830 crore, a sharp 156% jump from ₹325 crore in the corresponding quarter last year. On a sequential basis, net profit surged 205% from ₹272 crore reported in the March quarter (Q4 FY26).

Revenue from operations also witnessed robust growth, rising to ₹2,004 crore from ₹612 crore in the preceding quarter, registering a 223% sequential increase.

On the oil-to-chemicals (O2C) business, Motilal Oswal said earnings recovered in FY26 after a subdued FY25 but remained under pressure from higher crude oil premiums as well as elevated freight and insurance costs due to the West Asia conflict.

The brokerage expects only a modest recovery in the O2C segment over FY26-28 and projects the combined EBITDA of the O2C and exploration & production (E&P) businesses in FY28 to remain broadly in line with FY24 levels.

Domestic brokerage firm Motilal Oswal expects Reliance Jio to remain Reliance Industries' largest growth driver over the next few years, with the digital business contributing nearly 80% of the company's incremental EBITDA.

The brokerage forecasts an 18% EBITDA CAGR during FY26-28, driven by an expected 15% wireless tariff hike in the second quarter, continued market share gains in the wireless segment, and the steady ramp-up of its Homes and Enterprise businesses.

Mukesh Ambani outlined five key value-creation pillars that will drive Reliance's next phase of growth. These include reinventing the oil-to-chemicals (O2C) business to create sustainable revenue streams, accelerating the commissioning and monetisation of its New Energy business, scaling Reliance Intelligence into a major growth platform, building RCPL into India's largest FMCG company, and enabling exports worth $125-150 billion by 2032.

At the company's Annual General Meeting (AGM), Reliance Industries Chairman Mukesh Ambani outlined an ambitious long-term growth strategy, saying the company aims to more than double its consolidated EBITDA over the next five years.

Ambani further announced a deeper push into manufacturing across fresh produce, apparel and consumer electronics, while reiterating the target of achieving ₹1 lakh crore in gross revenue from Reliance Consumer Products (RCPL), its FMCG business, by FY30.

Ahead of Reliance Industries' earnings, Axis Direct has recommended a Bull Call Spread strategy for traders expecting a moderately bullish move. The strategy involves buying a 1,320 call and selling a 1,360 call, helping reduce the overall premium cost while keeping both risk and reward capped. Based on the brokerage's calculations, the strategy has a breakeven level of 1,333, a maximum profit of ₹13,500, and a maximum loss of ₹6,500 per lot. Axis Direct advised traders to enter and exit all legs together and square off the position before the July 28, 2026 expiry.

According to Axis Direct, the derivatives data suggests that 1,400 remains the key resistance level for Reliance Industries due to heavy call concentration, while fresh put writing at the 1,320 strike indicates strong support near the current market price. The brokerage added that the 1,280-1,300 zone continues to act as the primary downside support. It also highlighted that the put-call ratio (PCR) has fallen to 0.59 from 0.71, reflecting aggressive call writing and a cautious near-term outlook, although open interest data points to a mild recovery in the stock.

Kotak Institutional Equities expects Reliance's oil-to-chemicals (O2C) business, the company's largest earnings contributor, to remain the key growth driver during the quarter.

"O2C will likely benefit from strong SEZ refinery earnings (no windfall tax impact), US ethane-based petchem, and weak INR. We expect relatively muted retail business with 12% YoY revenue growth, and weak oil & gas business on declining production," the brokerage said.

According to Kotak, the O2C segment is likely to benefit from stronger earnings at SEZ refineries, the absence of windfall tax, improved profitability from the US ethane-based petrochemicals business and a weaker rupee. However, it expects the retail business to post a relatively muted 12% year-on-year revenue growth, while the oil and gas business is likely to remain under pressure due to declining production.

Kotak Institutional Equities expects Reliance Industries to report consolidated EBITDA growth of 8.4% year-on-year and 5.4% quarter-on-quarter during the June quarter.

"We expect RIL's consolidated EBITDA to rise by 8.4% YoY (up 5.4% QoQ). We expect segment EBITDA to rise 12.1% YoY for O2C and 5.6% for Retail, with the oil and gas segment EBITDA likely to decline 11.3% YoY," said Kotak Institutional Equities.

The brokerage expects Retail EBITDA to increase 5.6% year-on-year but decline 2.6% sequentially. It forecasts O2C EBITDA to rise 12.1% year-on-year and 12% quarter-on-quarter, while E&P EBITDA is expected to decline 11.3% year-on-year but grow 5.7% sequentially. On the standalone business, Kotak expects EBITDA to increase 13.8% year-on-year and 25.3% quarter-on-quarter.

Reliance ended 2.78% higher at ₹1,329 on BSE ahead of June quarter earnings later today.

The O2C segment is expected to be the biggest earnings driver during the quarter as refining economics improve following a weak previous quarter.

Antique Stock Broking expects O2C EBITDA to increase 25% quarter-on-quarter, aided by stronger gross refining margins (GRMs) and improving petrochemical spreads. The brokerage, however, expects the upstream business to remain the weakest segment due to lower production from the KG-D6 gas fields.

Reliance's digital services business is once again expected to provide stability to consolidated earnings.

According to Nuvama Institutional Equities, digital EBITDA is likely to grow 11% year-on-year and 2% quarter-on-quarter, supported by continued improvement in ARPU and subscriber additions. The brokerage expects ARPU to increase 3% year-on-year and 1% sequentially, while the subscriber base is projected to expand 7% year-on-year and 2% quarter-on-quarter.

Apart from headline earnings, investors will closely watch management commentary on O2C margin sustainability, retail demand trends, Jio's subscriber additions and ARPU growth, the outlook for telecom tariff hikes, and updates on future capital expenditure.

Despite continued expansion, Reliance Retail is expected to remain the weakest link within the group's diversified business portfolio as consumer demand remains subdued.

Systematix Institutional Equities expects the retail business to deliver EBITDA growth of 12.4% year-on-year and 3.7% quarter-on-quarter. The brokerage also expects revenue per square foot to improve 18.6% year-on-year while remaining flat sequentially. Antique Stock Broking, however, has a relatively conservative view and expects retail EBITDA to increase 7% year-on-year to ₹6,803 crore.