Reliance Industries reports record Q2 profit as oil-to-chemicals earnings rise 68%

Reliance Industries Limited (RIL) reported a record consolidated net profit of ₹29,550 crore for the second quarter of FY2026-27, an increase of 33.8% from ₹22,092 crore in the corresponding period last year. Strong earnings from its oil-to-chemicals (O2C) operations and digital services supported the performance, with the O2C business emerging as the largest contributor to quarterly earnings growth.

The company’s consolidated gross revenue increased 27.8% year on year to ₹3,62,268 crore for the quarter ended 30 September 2026. Earnings before interest, taxes, depreciation and amortisation (EBITDA) reached ₹62,409 crore, up 23.9% from ₹50,367 crore a year earlier.

The results, announced on 30 October, reflect stronger refining and petrochemical margins amid tighter global energy markets. Reliance also reported improved performance across its digital services operations, while its retail business faced comparatively weaker earnings.

Reliance O2C business records 68% EBITDA growth

The O2C division was the principal driver of Reliance’s quarterly earnings growth. Its EBITDA increased 67.9% year on year to ₹25,203 crore, compared with ₹15,008 crore in the September 2025 quarter.

O2C revenue rose 44.2% to ₹2,31,601 crore, supported by higher crude oil and refined product prices, stronger transportation fuel margins and improved petrochemical realisations.

Global energy market disruptions contributed to the improvement in refining economics. Crude oil prices increased significantly during the quarter, while transportation fuel prices and downstream chemical product prices also recorded substantial annual gains.

Reliance reported that transportation fuel cracks strengthened considerably, with diesel and aviation fuel margins reaching exceptionally high levels. Improved polyester chain margins also supported the petrochemicals business.

The company said its integrated operations, flexibility in sourcing crude oil and ability to optimise product placement helped it capture improved margins despite higher operating costs and supply-chain disruptions.

The performance also came against a challenging international operating environment. Disruptions affecting the Strait of Hormuz increased pressure on crude supply routes, freight costs and insurance expenses.

Reliance responded by diversifying crude sourcing across regions including the Americas, North America and the Mediterranean, while redirecting refined product exports towards markets offering better commercial returns.

Digital services add to Reliance’s earnings growth

Reliance’s digital services business continued to contribute to consolidated earnings. Digital Services EBITDA increased 17.7% year on year to ₹22,223 crore.

Jio Platforms reported sustained subscriber growth and continued expansion across connectivity services. Its subscriber base reached 542.4 million, including 300 million 5G subscribers, according to the company’s investor presentation.

The business also reported a fixed broadband subscriber base of 30 million, with fixed wireless access accounting for more than half of its current base.

Reliance is pursuing additional revenue opportunities through connectivity services, enterprise offerings and digital applications. The scale of its subscriber network provides a platform for further monetisation across mobility and home broadband services.

The quarter also marked an important capital-market development for Jio Platforms, which made its stock-market debut and became India’s second-most-valuable listed company, according to Reliance’s presentation.

Retail business faces comparatively subdued performance

Reliance Retail recorded a less pronounced improvement than the group’s O2C and digital businesses.

The retail division’s EBITDA declined 10.2% year on year to ₹6,120 crore, despite revenue increasing 1.3% to ₹91,717 crore.

The company said it remained focused on profitable growth while expanding its digital commerce operations. Grocery business-to-consumer online revenue increased 42% year on year, while online sales also gained share in grocery, apparel and footwear.

The difference in performance across the group’s business segments highlights the varying operating conditions affecting its energy, digital and consumer-facing operations.

Reliance approves ₹15,000 crore debt fundraising plan

Alongside its quarterly results, Reliance’s board approved a proposal to raise up to ₹15,000 crore through private placement of non-convertible debentures in one or more tranches.

The proposed fundraising provides an additional financing option for the company. However, the announcement does not establish how the proceeds will be allocated across its businesses.

Reliance reported consolidated EBITDA of ₹62,409 crore for the quarter, while its net debt stood at ₹1,17,140 crore at the end of September 2026.

The company’s net debt-to-EBITDA ratio was 0.47 times on an annualised basis, compared with 0.59 times in the corresponding quarter last year.

What Reliance’s Q2 performance means for the energy sector

Reliance’s latest results demonstrate how changes in international crude prices, refining margins and petrochemical realisations can influence the earnings of integrated energy companies.

The 67.9% increase in O2C EBITDA highlights the contribution of refining and petrochemical operations to the group’s consolidated financial performance.

For energy suppliers, feedstock providers, shipping companies and petrochemical customers, changing global energy flows and freight economics remain important commercial considerations.

However, the strength of quarterly O2C earnings also needs to be considered against the volatility of commodity prices. Higher fuel cracks and product realisations can support refining profitability, but the sustainability of these margins will depend on global supply-demand conditions, crude sourcing costs and downstream demand.

Reliance’s ability to maintain operational flexibility and diversify crude supplies will therefore remain important to its future O2C performance.

Follow B2B Market Signal on social media for the latest business news, industry developments, market intelligence and analysis. Connect with us on LinkedIn and follow us on Instagram at @b2bmarketsignal for regular updates