Reliance Industries Ltd (RIL) has reported its highest-ever consolidated net profit of ₹29,550 crore for the second quarter of FY27, registering a 33.8% year-on-year increase, supported by strong performance in its Oil-to-Chemicals (O2C) business and continued growth in digital services.
Consolidated revenue surged 27.8% to a record ₹3,62,268 crore, while EBITDA increased 23.9% to ₹62,409 crore, reflecting improved operating performance across major businesses.
The results highlight the strength of Reliance’s diversified business portfolio, although performance across its segments remained uneven, with O2C and Jio Platforms delivering strong growth while the retail business faced margin pressures.
O2C business drives earnings growth
The Oil-to-Chemicals business emerged as the strongest earnings contributor during the quarter, with revenue increasing 44.2% year-on-year, driven largely by a sharp increase in crude oil and refined product prices.
Crude prices rose 40.6% during the quarter, while transportation fuel prices increased 50-78% year-on-year. Prices of most downstream chemical products also climbed 25-35%, reflecting higher feedstock costs.
O2C EBITDA surged 67.9%, supported by a steep improvement in transportation fuel cracks and downstream petrochemical margins.
Fuel cracks increased 3-3.7 times amid a tight global refining environment. Polyester chain margins improved 33%, led by a 15% increase in paraxylene (PX) delta and a 52% rise in purified terephthalic acid (PTA) delta.
However, earnings were partly constrained by higher crude oil premiums, elevated freight rates, Special Additional Excise Duty (SAED)-related costs and under-recoveries in domestic fuel retail.
Jio Platforms benefits from subscriber and ARPU growth
Jio Platforms Ltd (JPL) recorded an 11.3% year-on-year increase in revenue, supported by continued subscriber additions, higher average revenue per user (ARPU) and healthy growth in digital services.
Its EBITDA rose 16.6%, benefiting from strong revenue growth and a 250-basis-point year-on-year expansion in operating margin.
The performance reflects the continued contribution of Jio’s telecom and digital services businesses to Reliance’s consolidated earnings.
Retail business faces margin pressure
Reliance Retail Ventures Ltd (RRVL) reported a 6.4% increase in revenue to ₹91,716 crore. However, its performance was affected by the shift in the festive calendar to the third quarter.
EBITDA declined 8.6% year-on-year to ₹6,228 crore, while the operating margin contracted 120 basis points to 7.8%.
Reliance attributed the pressure to its planned investment phase in digital commerce, the absorption of input-cost inflation rather than passing it on fully to consumers, and the festive calendar shift.
The divergence between revenue and EBITDA growth indicates that retail profitability remains under pressure even as the business continues to expand.
Oil and Gas revenue remains stable
Revenue from the Oil and Gas segment remained stable year-on-year. Lower production and price realisation from the KG-D6 gas fields were offset by higher condensate price realisation.
Improved volumes and price realisation in coal-bed methane (CBM) operations also supported revenue.
However, segment EBITDA declined 2% year-on-year due to lower KG-D6 gas revenues and higher government levies, partly offset by favourable foreign exchange movements.
Ambani highlights Jio listing and business resilience
Reliance Industries Ltd Chairman and Managing Director Mukesh D Ambani said the listing of Jio on Indian stock exchanges marked a historic milestone in the company’s value-creation journey.
He noted that the issue received more than 22 times subscription and witnessed strong listing appreciation, setting multiple global benchmarks. Jio Platforms has now become India’s second-largest company, reflecting investor confidence in its business fundamentals and growth prospects.
Ambani also highlighted the revival of the equity culture originally pioneered by Reliance’s founder-chairman during the company’s 1977 public issue.
On the quarterly performance, he said Reliance delivered strong results despite volatile commodity markets and geopolitical tensions affecting global supply chains.
He added that the domestic orientation of the company’s portfolio, operational discipline and the versatility of its integrated businesses helped it navigate external volatility.
Diversified portfolio supports record performance
Reliance’s Q2FY27 performance demonstrates the earnings contribution of its diversified business model, with the O2C segment benefiting from favourable refining and petrochemical market conditions, while Jio continued to expand its digital business.
However, the decline in retail EBITDA and the marginal contraction in Oil and Gas earnings underline the varying operating conditions across its businesses.
With consolidated revenue crossing ₹3.62 lakh crore and EBITDA exceeding ₹62,000 crore, Reliance has delivered record financial performance, with the sustainability of O2C margins and a recovery in retail profitability likely to remain important factors for earnings growth in the coming quarters.