Reliance Industries Q2 FY26: A Mixed Bag of Strength and Challenges
Reliance Industries reported a consolidated net profit of â‚ą18,165 crore in Q2 FY26, marking a 10% year-on-year growth on a revenue of â‚ą2.59 lakh crore.
Here’s a breakdown of the key highlights:
Oil-to-Chemicals (O2C) Business: Revenue grew 3.2% YoY to â‚ą160,558 crore, with EBITDA increasing 20.9% YoY to â‚ą15,008 crore, driven by improved transportation fuel cracks and polymer margins.
Retail Segment: Revenue jumped 18% YoY to â‚ą90,018 crore, with EBITDA rising 16.5% YoY to â‚ą6,816 crore, supported by festive demand and GST rate cuts.
Digital Services (Jio Platforms): Revenue grew 14.9% YoY to â‚ą42,652 crore, with EBITDA increasing 17.7% YoY to â‚ą18,757 crore, driven by subscriber growth and improved ARPU.
Oil & Gas Segment: Revenue declined 2.6% YoY to â‚ą6,058 crore, with EBITDA decreasing 5.4% YoY to â‚ą5,002 crore, due to natural decline in KGD6 production and higher operating costs.
Why It Matters to Investors
– Reliance’s diversified model helps mitigate risks, with consumer-facing businesses driving growth.
– Strong performance in retail and digital signals a shift towards these segments.
– Energy input costs and commodity cycles may pressure margins, emphasizing the need for execution and cost control.
Key Takeaways
– Consolidated EBITDA grew 14.6% YoY to â‚ą50,367 crore.
– PAT stood at â‚ą22,092 crore, up 14.3% YoY.
– Reliance’s focus on digital and retail arms is driving growth, while energy remains a challenge.