Reliance Industries Q2 Profit Rises 34% to ₹29,550 Cr Led by Record O2C Margins

Reliance Industries Limited (RIL) delivered a record-setting operational performance for the second quarter ended September 30, 2026, posting a consolidated net profit of ₹29,550 crore, up 33.8% year-on-year. Consolidated gross revenue expanded 27.8% to ₹3,62,268 crore, propelled by widening refining margins in the Oil-to-Chemicals (O2C) segment and tariff-driven ARPU expansion at Jio Platforms.

What Happened

Consolidated EBITDA rose 23.9% YoY to ₹62,409 crore, establishing an all-time quarterly benchmark for Indian corporate earnings. The O2C division delivered the most significant growth impetus, generating EBITDA of ₹25,203 crore (+67.9% YoY) on segment revenue of ₹2,31,601 crore (+44.2% YoY), capitalizing on tight middle-distillate export markets. Quarterly capital expenditure moderated to ₹38,153 crore as 5G network rollout spending stabilized, allowing strong free cash generation across operating subsidiaries.

Q2 FY27 Segment Financial Snapshot

Net profit attributable to owners of the parent climbed to ₹25,548 crore from ₹18,119 crore, confirming that core operational strength drove bottom-line expansion rather than extraordinary asset disposals.

Sector Context & Earnings Quality

Performance diverged across RIL's consumer and industrial pillars. Digital arm Jio Platforms recorded an ARPU increase to ₹218.80 per month following full flow-through from earlier headline tariff revisions and premium subscriber migration to unlimited 5G data bundles. Conversely, Reliance Retail faced short-term margin headwinds, with segment EBITDA contracting 8.6% YoY to ₹6,120 crore due to quick-commerce infrastructure build-out costs and the timing shift of the festive shopping calendar into the third quarter.

Independent TradeKaizen Analysis & Key Risks

TradeKaizen Analysis: The earnings print firmly reaffirms RIL's cash-compounding engine. The O2C turnaround illustrates the strategic agility of the Jamnagar refinery complex, which maximized processing margins by optimizing heavy crude feedstock selection while global regional refineries faced margin compression. Meanwhile, Jio's margin expansion to 54.10% demonstrates that 5G network investments have transitioned into a monetization phase. Retail operating profitability should stage an immediate rebound in Q3 FY27 as festive inventory turns convert into gross margin expansion.

Key risks include sudden corrections in benchmark Singapore gross refining margins (GRM), prolonged competitive discounting in quick commerce, and potential delays in commercializing the gigafactory solar and battery manufacturing projects in Jamnagar.

Disclaimer: This report is for informational purposes only and does not constitute investment advice.