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

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

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

There were no further updates on the new energy giga complex in Jamnagar. The project is claimed to be the world’s largest single-location clean energy complex, which will transform sand into solar modules and use the clean energy obtained from these modules to produce green hydrogen and power data centers.

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Reliance’s fast moving consumer goods business, another key growth driver, saw its revenue double in the second quarter compared to the previous year. ₹5,400 crore, putting it ahead of other legacy FMCG companies. The company said the demerger of its FMCG unit, which will become a direct subsidiary of Reliance Industries, is progressing.

However, production of Reliance Industries’ key Krishna Godavari D6 block fell for the fourth consecutive quarter.

Overall, Reliance Industries reported consolidated profit ₹22,146 crore, up 16% in the second quarter ₹19,101 crore a year ago, driven by improved profitability in three core business segments – oil to chemicals (O2C), telecommunications and retail. Revenues increased by 10 percent annually ₹Earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 15% to 2.83 trillion. ₹50,367 crore.

However, Reliance’s revenue from its oil exploration and production business fell 3%. ₹6,058 crore and EBITDA increased by 5% ₹5,002 crore.

“Reliance delivered a strong performance during 2QFY26, driven by strong contributions from O2C, Jio and Retail businesses,” said Mukesh Ambani, chairman and managing director of Reliance Industries. “Consolidated EBITDA grew 14.6% year-on-year, reflecting agile business operations, domestically focused portfolio and structural growth in the Indian economy.”

From oil to chemicals: Profit from fuel cracks

Reliance Industries’ O2C business, which converts crude oil into fuel and other chemicals, benefited 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 the decline in crude oil prices and increased demand for transportation fuels.

This helped improve Reliance’s gross refining margin (GRM), a key indicator of a refinery’s profitability. According to JP Morgan analysts, every $1 per barrel increase in GRM will lead to a 2% increase in consolidated EBITDA and a 4% increase in net profit in 2026-27 for Reliance Industries.

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Revenue from O2C business increased 3% YoY ₹1.6 trillion in the second quarter, while EBITDA increased by 21% ₹15,008 crore.

Reliance’s telecom and retail engines

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

Revenue at Jio Platforms Ltd, which houses Reliance’s telecom business, rose 15% year-on-year. ₹42,652 crore, while EBITDA increased by 18% ₹18,757 crore.

Jio Platforms, which also houses the company’s digital business, will hit the public markets next year.

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

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

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

Shares of Reliance Industries closed 1.35% higher on the BSE on Friday. ₹1,416.95. The benchmark Sensex index completed the session with a 0.58% increase. Earnings were announced after trading hours.