Reliance Industries has delivered a solid second quarter (Q2 FY26) performance, with its gross revenue up 10% year-on-year to ₹2.84 lakh crore. The growth highlights the rising strength of its consumer-facing businesses — especially in retail and digital — even as its traditional energy and chemicals segments face margin pressures.
In this article, we break down the results, segment performance, challenges, and what to watch going forward.
Key Numbers at a Glance
| Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Gross Revenue | ₹2.84 lakh crore | +10% |
| EBITDA | ₹50,367 crore | +14.6% |
| Net Profit (pre-minority interest) | ₹22,092 crore | +14.3% |
| Profit Before Tax | ₹29,124 crore | +16.3% |
| Capex for Quarter | ₹40,010 crore | Fully funded via internal cash flows |
| Net Debt | ~ ₹1.19 lakh crore | Stable compared to June end |
What Drove the Growth
1. Consumer / Digital Businesses Lead
- The Jio / digital services business saw revenue growth of ~15% YoY, with EBITDA rising faster, helped by improved ARPU and subscriber additions.
- Retail also continued its upward trajectory, with all formats registering higher volumes. The company’s hyperlocal delivery model (JioMart / quick commerce) added momentum.
These consumer / digital engines are increasingly compensating for weaknesses in more legacy verticals.
2. Recovery in Refining & O2C Margins
- The Oil-to-Chemicals (O2C) segment saw improvement, benefiting from stronger fuel crack spreads and better polymer / refining deltas.
- Throughput also rose slightly (production meant for sale up ~2.3%) contributing to volume gains.
However, the O2C segment still faces volatility due to global supply/demand swings in petrochemicals and refining.
3. Prudent Financing & Capital Management
- Capex for the quarter was high, ₹40,010 crore, but it was fully covered by internal cash flows.
- Net debt remained largely stable quarter-on-quarter, reflecting steady balance sheet discipline.
These financials help assure investors that growth is being balanced with responsibility.
Challenges & Watch-Outs
- Upstream / E&P Weakness: The oil & gas / exploration business recorded YoY revenue decline (-2.6%), pressured by production declines in blocks like KGD6 and lower realizations.
- Margin Volatility: While refining margins have helped, volatility in feedstock costs, global chemicals oversupply, and regulatory changes can squeeze margins.
- Execution Risk on Capex: Deploying large capital efficiently is key; overcommitment or delays can erode returns.
- Competitive Pressure in Digital / Retail: As more players intensify offerings in telecom, e-commerce, quick commerce, Reliance must stay ahead on differentiation, technology, and customer experience.
Outlook & What to Watch
- Jio IPO & Value Unlocking
Many expect the digital / telecom arm (Jio) to be demerged or listed, which could unlock substantial shareholder value. Reliance’s strong Q2 digital numbers strengthen that case. - Sustaining Retail Momentum
Continued expansion in tier-II/III markets, omnichannel integration, and better margins in retail will be pivotal. - Refining / O2C Margin Cycles
Reliance will benefit if refining cracks remain firm and petrochemical demand stays healthy. Global tailwinds or headwinds will matter. - Capex Efficiency & New Investments
How Reliance allocates its capital (green energy, new verticals, tech) will define its medium-term trajectory.
