Reliance Industries Ltd delivered exceptional Q2 FY27 results with consolidated net profit attributable to owners rising 40.6% year-on-year to a record ₹25,548 crore, significantly beating analyst estimates of ₹21,368 crore according to Bloomberg. The company also reported consolidated net profit of ₹29,550 crore, marking the highest quarterly PAT in company history and exceeding the previous record of ₹20,946 crore in Q1 FY27. Revenue surged 29.8% to an all-time high of ₹3.31 lakh crore, driven by sharp rises in transportation fuel and downstream petrochemical prices amid volatile commodity markets. EBITDA increased 19% sequentially to ₹56,616 crore with consolidated EBITDA margin expanding to 17.1% from 15.4% in the June quarter. H1 FY27 net profit attributable to owners stood at ₹46,494 crore, making RIL the first Indian company to cross the ₹50,000 crore mark in a half-year, with H1 revenues crossing the ₹6 trillion milestone in a first for India.
The Oil-to-Chemicals segment continued its exceptional performance with EBITDA surging 67.9% year-on-year to ₹25,203 crore, benefiting from fuel cracks that were up 3-3.7 times Y-o-Y and reached historic highs during the quarter. As reported by Business Standard, transportation fuel prices increased 50-78% Y-o-Y while prices of most downstream chemical products rose 25-35% driven by higher feedstock costs. The O2C division added ₹71,043 crore to gross revenue in Q2 FY27, accounting for over 80% of incremental growth in consolidated gross revenue and EBIT. O2C's gross revenue rose 44.2% Y-o-Y to a record ₹2.32 lakh crore, with its share of consolidated gross revenue increasing to 57.4% from 50.7% a year earlier. Global supply disruptions linked to the West Asia conflict, including tensions around the Strait of Hormuz, along with attacks on refining infrastructure in the region and Russia, pushed fuel cracks to 3.0–3.7 times their year-ago levels. Dated Brent crude averaged $97 per barrel during the quarter, up 40.6% year-on-year. The company recorded its highest-ever crude processing volumes by increasing supplies from the Americas and the Mediterranean and by redirecting exports to markets offering better net realisations. Higher fuel cracks, tighter global energy markets, and favourable crude sourcing supported the performance, with better price realisations in downstream chemicals also contributing. Reliance said its first-half performance puts the O2C business on track to deliver annualised EBITDA of more than ₹80,000 crore, while it also expects its new energy projects to begin contributing to earnings from FY28.
Digital services continued to be a key growth driver with EBITDA rising 17.7% year-on-year to ₹22,223 crore, supported by subscriber additions and increased average revenue per user. According to Business Standard, Jio Platforms reported a 13.7% Y-o-Y rise in net profit to ₹8,389 crore with revenue increasing 11.4% to ₹40,475 crore. The company's subscriber base reached 542.4 million, including 300 million 5G users, with total subscriber additions of 36 million over the past 12 months. Jio's average revenue per user rose to ₹218.8 a month from ₹215.6 in the previous quarter, while data traffic increased 22.1% year-on-year. Online grocery revenue grew 42% year-on-year with increased online share across grocery, apparel and footwear categories. The company achieved 2X industry growth in active mobility net adds and significant gains in home broadband market share, with Jio adding every second new broadband home in India. Jio Platforms contributed 5.7% of incremental revenue growth in Q2 FY27, while Reliance Retail accounted for 1.4%. Jio's stock has gained 28% over its offer price of ₹1,119 in the three trading sessions after listing on October 28, raising its trailing P/E multiple to 42 from around 34 at the time of the IPO, narrowing the valuations gap with Bharti Airtel which trades at a trailing P/E of 43.
The retail segment faced significant headwinds with Reliance Retail Ventures reporting a 6.67% sequential decline in net profit to ₹2,619 crore in Q2 FY27, taking a one-time impairment charge of ₹108 crore following the discontinuation of its 7-Eleven stores. As reported by Business Standard, EBITDA from operations fell 3% sequentially to ₹6,120 crore while margin contracted 31 basis points to 6.67%, reflecting pressure from costs and investments. The company attributed pressure to investments in digital commerce, higher input costs absorbed rather than passed to customers, and the shift in the festive calendar to the December quarter. Despite challenges, revenue from operations increased 5.8% Y-o-Y to ₹80,220 crore with gross revenue rising 6.4% to ₹91,716 crore. The segment faced pressure from elevated operational expenses, high crude premiums, surge in freight rates and insurance costs, though the company maintained its focus on scaling online commerce and retail network expansion. Reliance Retail opened 303 stores but closed unproductive locations, resulting in a net reduction of 222 stores, with its total store count standing at 19,947 even as customer transactions grew 7% year-on-year. Rising inflation and a shift in festive demand to the December quarter may impact future retail earnings, with elevated inflation and uneven rural demand due to weak monsoon constraining discretionary consumption in the near term.
Reliance Industries strengthened its financial position with net debt declining to ₹1.17 lakh crore as of September 30, compared with ₹1.23 lakh crore at the end of June. The net debt-to-EBITDA ratio improved to 0.47 times from 0.57 times, supported by internal cash-flow generation. Capital expenditure stood at ₹38,153 crore during the quarter, directed towards new energy capacity build-out, retail network densification and O2C projects. The company achieved a historic milestone with Jio Platforms IPO raising ₹30,188 crore (US$3.2 billion), making it India's second most valuable company by market capitalisation with ₹13.1 lakh crore market cap. The results came two days after the record-setting listing of Jio's digital business on Indian bourses with over 22x subscription, setting multiple global benchmarks and witnessing the rejuvenation of the equity cult originally pioneered by the company's founder-chairman during the 1977 Reliance IPO. JioMart's revenue increased 42% year-on-year, supported by higher average order values and a 24% rise in units per order, with its network of more than 5,000 stores across 1,000 cities helping expand its reach. RIL shares closed 0.44% lower at ₹1,163.55 apiece on the BSE on Friday following the results announcement.
Nuvama Institutional Equities maintained a Buy rating on Reliance Industries but cut its target price to ₹1,703 from ₹1,766, factoring in a 25% holding-company discount for the Jio listing. The brokerage noted that 6GW of solar module and 5GW of cell manufacturing capacity has commenced operations, with the combined capacity expected to increase to 20GW by next year, which could potentially add 5% to the company's profit after tax. The company is also targeting 2GW of transmission lines by Q3FY27 and 3GW by March 2027, while infrastructure development for a 150GW round-the-clock (RTC) power site is underway, which could reduce captive power costs by more than 25%, potentially adding 6% to PAT. However, Nuvama cautioned that persistent weakness in the retail business, which trades at a rich valuation of 27 times EV/EBITDA, could dilute the strong performance of the O2C segment, valued at 12.5 times EV/EBITDA. Equirus Securities has a Long rating on Reliance Industries, with a target price of ₹1,537, though the brokerage said its recommendation is under review. RIL shares have remained under pressure across most timeframes, with the stock declining 2.22% over the past week and 3.84% in two weeks. The stock is down 26.12% so far in 2026 and has shed 21.83% over the past year, though it has delivered a strong return of 383.99% over the past decade.
