Reliance Reports 16% Increase in Q2 Profit to Rs 48.5k Crore, Revenue Grows by 10%
Reliance Industries Limited (RIL), India’s largest company by market capitalization, reported a robust 16% increase in quarterly profit, attributed to the strong performance of its oil-to-chemicals (O2C) segment and its consumer-facing digital and retail businesses. The company’s revenue surpassed Rs 2.6 lakh crore, marking a 10% rise. Mukesh Ambani, the chairman and managing director, highlighted the company’s agile operations and the structural growth of the Indian economy as key factors behind this success.
Strong Performance in Oil-to-Chemicals Segment
Reliance’s O2C business saw a significant operating profit increase of 21%, reaching Rs 15,008 crore. This growth was fueled by a rebound in transportation fuel margins and improved polymer margins. Despite ongoing volatility in energy markets, revenue from the O2C segment rose by 3.2% to Rs 1.6 lakh crore. Ambani noted that fuel margins had recovered compared to the previous year, driven by middle distillate cracks. However, he acknowledged that the downstream chemicals sector continues to face challenges due to overcapacity. He expressed optimism that corrective measures by industry stakeholders would help stabilize global downstream markets in the medium term.
Digital Services and Retail Business Growth
The digital services arm, Jio, experienced a 17% surge in operating profit, totaling Rs 18,882 crore. This growth was attributed to increased revenue and improved margins, driven by gains in subscriber market share across both mobility and home services. Jio’s average revenue per user (ARPU) rose to Rs 211 in Q2 FY26, reflecting an 8% increase. The company reported a customer base of 506 million as of September 30, 2025, with data and voice traffic growth of approximately 30% and 6%, respectively. Meanwhile, Reliance Retail’s operating profit climbed 16% to Rs 6,817 crore, supported by enhanced efficiencies and a better product mix. Revenue from this segment surged by 18% to Rs 90,018 crore, driven by growth in grocery, fashion, lifestyle, and consumer electronics.
Challenges in Oil and Gas Operations
In contrast, the oil and gas segment faced a decline in operating profit, which fell by 5% to Rs 5,002 crore. This decrease was primarily due to lower revenues and increased operating costs associated with periodic maintenance activities. Revenue in this sector dropped by 2.6%, attributed to a natural decline in gas production and reduced gas price realizations. As of the end of Q2 FY26, RIL reported a net debt of Rs 1.2 lakh crore, alongside cash and cash equivalents totaling Rs 2.29 lakh crore. The company also invested Rs 40,010 crore in capital expenditures during the quarter, reflecting its commitment to growth and expansion.
Outlook and Future Prospects
Reliance Industries continues to demonstrate resilience and adaptability in a challenging economic landscape. The company’s diversified portfolio, which includes oil-to-chemicals, digital services, and retail, positions it well for future growth. With ongoing investments and strategic initiatives, RIL aims to capitalize on emerging opportunities in the Indian market. As the company navigates the complexities of the energy sector and consumer demands, its strong financial performance underscores its pivotal role in India’s economic landscape.
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