Reliance Industries Reports Q2 FY27 Results: Profit Declines 22% Due to One-Time Asian Paints Caveat
Mukesh Ambani-led Reliance Industries Ltd (RIL) reported a consolidated net profit of Rs 20,946 crore for the first quarter of FY27, reflecting a 22% decline compared to the same period last year. The decrease is primarily due to an exceptional gain from the sale of its stake in Asian Paints in the previous year, when the profit after tax (PAT) stood at Rs 26,994 crore. Revenue from operations increased by 25% year-on-year to Rs 3.11 lakh crore, up from Rs 2.48 lakh crore in the same quarter last year.
Ambani noted that RIL has made a steady start to the fiscal year, with strong performance across all business segments. He emphasized the resilience of the company’s diverse portfolio amid ongoing geopolitical tensions and volatile commodity markets. Quarterly EBITDA rose 10% from the previous year to Rs 54,067 crore.
Increased Expenses and Capital Expenditure
Depreciation expenses for the quarter climbed 9% year-on-year to Rs 15,100 crore, largely due to increased depreciation in the Digital Services sector following the capitalization of 5G assets. Finance costs also rose by 18% to Rs 8,337 crore, reflecting higher liability balances associated with the 5G investments.
Capital expenditure for the quarter reached Rs 38,682 crore ($4.1 billion). RIL reported significant progress in its Oil-to-Chemicals (O2C) and New Energy projects, while also focusing on expanding its consumer business infrastructure.
Performance of Oil-to-Chemicals Business
RIL’s core Oil-to-Chemicals (O2C) segment saw a 30% year-on-year revenue increase to Rs 2.01 lakh crore ($21.3 billion). This growth was driven by a 54.1% rise in crude oil prices, although it was partially offset by lower production due to a planned turnaround. EBITDA from the O2C segment rose 17% to Rs 17,010 crore ($1.8 billion), aided by improved transportation fuel cracks and stronger downstream margins.
Ambani stated that the O2C business performed well despite challenges in the global energy market, benefiting from a diversified crude basket and favorable market conditions for ethane cracking.
Jio Platforms Reports Growth
Jio Platforms reported a 9.2% year-on-year increase in profit after tax (PAT) to Rs 7,764 crore for the quarter ending June 2026. This growth was attributed to an increase in subscriber market share, higher average revenue per user (ARPU), and rising sales of digital services. The PAT for the same quarter last year was Rs 7,110 crore.
Ambani highlighted the continued growth momentum in Jio’s digital services, noting strong performance across mobility, home broadband, and enterprise services, which contributed to a 15% year-on-year earnings growth. Jio Platforms also submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (Sebi), marking a significant step toward its proposed public listing. Revenue from operations for Jio rose 11.8% year-on-year to Rs 39,173 crore, compared to Rs 35,032 crore in the June 2025 quarter.
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