All-round growth propels RIL earnings by 9.7%, sales jump 10% in Q2

Reliance Industries reported a recovery in earnings growth in the July-September 2025 quarter (Q2FY26), driven by its telecom and digital services business and its legacy oils-to-chemicals (O2C) segment. The company also recorded an uptick in revenue growth, supported by faster expansion at its retail venture. 

The conglomerate’s consolidated net profit attributable to owners (or shareholders) rose 9.7 per cent year-on-year to ₹18,165 crore in Q2FY26, from ₹16,563 crore a year earlier, but fell 32.7 per cent sequentially from ₹26,994 crore in Q1FY26. The sharp quarter-on-quarter decline reflected a one-off gain of ₹8,924 crore from the sale of listed investments in Q1FY26. 

 

Consolidated net sales increased 10 per cent to ₹2.55 trillion in Q2FY26 from ₹2.32 trillion a year ago and rose 4.5 per cent sequentially from ₹2.44 trillion. 

Reliance’s net profit slightly missed Bloomberg consensus estimates of around ₹18,900 crore, while net sales exceeded expectations, against the forecast of ₹2.49 trillion. 

Commenting on the results, Mukesh D Ambani, chairman and managing director, said: “Reliance delivered a robust performance during Q2FY26 led by strong contributions from O2C, Jio and Retail businesses.” 

The core Ebitda (earnings before interest, taxes, depreciation, and amortisation) — operating profit excluding other income and non-recurring gains and losses — rose 17.5 per cent year-on-year to ₹50,367 crore, marking the fastest growth in eight quarters. By contrast, consolidated core Ebitda had fallen 4.7 per cent year-on-year in Q2FY25 and grown 10.7 per cent in Q1FY26. 

Ambani noted that “consolidated Ebitda registered 14.6 per cent growth on a year-on-year basis, reflecting agile business operations, a domestically focused portfolio, and structural growth in the Indian economy.” 

Reliance benefited from benign raw material and crude oil prices. Raw material costs fell 0.5 per cent year-on-year to ₹1.06 trillion, supporting a sharp rise in gross margins in the refining and petrochemicals segment of the O2C division. Overall operating expenses rose 8.4 per cent year-on-year, slightly below the 9.6 per cent growth in total revenues.

 

Overall Ebitda margins improved 80 basis points year-on-year to 19.4 per cent of consolidated revenues, while core Ebitda margins (excluding other income) rose 110 basis points to 18 per cent of net sales. Interest expenses, however, continued to grow in double digits, rising 13.5 per cent year-on-year, outpacing net sales and potentially weighing on earnings should commodity or crude prices rise.

 

Reliance Jio, the company’s telecom and digital services division, was the largest contributor to year-on-year growth in consolidated net profit. Ebit for the division increased 22.4 per cent to ₹12,065 crore, accounting for 43 per cent of the incremental growth in RIL’s consolidated Ebit. However, net profit for the digital services division rose only 12.8 per cent year-on-year, reflecting an 87.5 per cent jump in interest expenses in the quarter.

 

The O2C segment was the second-largest contributor, with Ebit up 18.3 per cent year-on-year to ₹12,560 crore from ₹10,613 crore, accounting for 38 per cent of the incremental growth in consolidated Ebit.

 

The retail division’s Ebit rose 18.9 per cent year-on-year to ₹5,269 crore, representing 16.3 per cent of the incremental consolidated Ebit growth. Its net profit climbed 17.2 per cent year-on-year to ₹3,439 crore, aided by slower-than-expected growth in interest expenses, which increased 4.7 per cent year-on-year.