Reliance Industries Reports 34% Increase in Q2 Net Profit, Reaching Rs 29,550 Crore
MUMBAI: Reliance Industries, India’s largest company by market capitalization, reported a 34% increase in second-quarter profit for FY27, reaching Rs 29,550 crore. This figure surpassed analysts’ expectations of Rs 21,419 crore. The growth was fueled by robust performances in its oil-to-chemicals (O2C) and Jio digital services sectors. Revenue rose by 29% to over Rs 3.3 lakh crore, while EBITDA climbed 26% to Rs 61,224 crore, with expenses increasing by 28% to Rs 3 lakh crore.
Strong Performance in O2C and Jio
Reliance’s O2C segment showed particularly impressive results, driven by tight fuel markets, improved petrochemical margins, and strong domestic demand. EBITDA for the O2C division, which contributed 41% of total operating profit, surged 68% year-on-year to Rs 25,203 crore, bolstered by stronger transportation fuel and downstream margins.
Jio Platforms, which recently made a notable stock market debut, reported an 18% increase in EBITDA to Rs 22,223 crore. This growth was attributed to strong revenue increases, operational efficiencies, and a 250-basis-point margin expansion. Average revenue per user rose nearly 4% to Rs 219, supported by a better subscriber mix and increased usage, despite some impact from broadband promotions.
Mixed Results in Retail and Oil & Gas
In contrast, the retail unit’s EBITDA fell by 10% to Rs 6,120 crore, even as revenue grew 6% to Rs 80,220 crore in the second quarter. Reliance attributed this decline to a shift in the festive calendar to the third quarter. Additionally, EBITDA from the oil and gas division decreased by 2% to Rs 4,901 crore due to lower revenue and higher government levies. Smaller businesses, including media and consumer products, reported flat EBITDA at Rs 2,777 crore.
Reliance’s cash balance stood at over Rs 2.6 lakh crore, comfortably covering its net debt of Rs 1.2 lakh crore. The company’s capital expenditure reached Rs 38,153 crore, primarily driven by investments in O2C, new energy projects, and the expansion of infrastructure and distribution networks for its consumer businesses. On Friday, the Reliance board approved a plan to raise Rs 15,000 crore through listed, redeemable non-convertible debentures.
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