Reliance Industries Q2 FY27 (Quarter Ended September 30, 2026)
Here's the situation: Reliance Industries hasn't released its Q2 FY27 results yet. The numbers aren't out, and neither is the detailed segment breakdown. But that doesn't mean there's nothing to talk about. Quite the opposite. The company just raised ₹13,009 crore through non-convertible debentures (NCDs), its board is scheduled to meet on October 30, 2026, to consider both the quarterly results and another NCD proposal, and subsidiary Jio Platforms is in the middle of a massive ₹30,200 crore IPO.
So while we can't give you the Q2 revenue and profit numbers yet, we can tell you what's driving the business, where the money is going, and why the timing matters. Let's break it down.
Since Q2 results aren't available, here's where things stood at the end of Q1 FY27 (June 2026). This is our baseline for comparison.
Consolidated Performance:
Management described this as record quarterly recurring consolidated EBITDA, led by Oil to Chemicals (O2C) and Jio. Adjusted for the Consumer Brands demerger, revenue grew 11.6% year-on-year. The year-ago quarter included a one-time ₹8,924 crore gain from sale of listed investments, which distorts profit comparisons, so keep that in mind. Investor Presentation +2
Segment Performance - Q1 FY27:
Oil to Chemicals (O2C): This is Reliance's cash engine. Revenue hit ₹2,01,803 crore, up 30.4% year-on-year. EBITDA reached ₹17,010 crore, up 17.2% - a four-year high. What drove this? Record middle-distillate cracks (that's industry jargon for refining margins on diesel and jet fuel), downstream chemical margins at 3-4 year highs, and better ethane cracking economics compared to naphtha. A more diversified crude basket helped too. But there were headwinds: SAED-related costs, under-recovery in domestic fuel retail, and about 10% lower volumes from a planned turnaround and LPG diversion. Investor Presentation +1
Reliance Retail: Gross revenue was ₹90,408 crore, up 7.4%. But here's the interesting part - EBITDA dipped 1.1% to ₹6,309 crore, with margins at 7.9%, down 80 basis points. Profit after tax fell 14.1% to ₹2,805 crore. Why? Management says this is deliberate. They're investing heavily in hyper-local delivery and scaling digital commerce, trading off short-term margins for long-term growth. Their ambition? Double retail EBITDA over the next three years. Investor Presentation +4
Jio Platforms (Digital Services): Operating revenue was ₹39,173 crore with an EBITDA margin of 53.3%. ARPU (average revenue per user) growth came from value offerings and subscriber upgrades. Connectivity subscribers reached 533 million, with about half of the 29 million fixed broadband base on JioAirFiber. There's a discrepancy in the PAT figures between sources (₹764 crore versus ₹7,764 crore), so we'd wait for the official filing before relying on either. Transcript +4
Oil & Gas: Revenue was ₹6,298 crore, up 3.2%. EBITDA was ₹4,973 crore, down 0.5%, because KG-D6 gas volumes and prices were weak. Investor Presentation +1
On October 1, 2026, Reliance allotted "PPD Series R" unsecured NCDs worth ₹13,008.61 crore through private placement. Here are the key terms:
This was a base issue of ₹12,000 crore with a green shoe option of ₹1,000 crore, which was fully exercised.
Now, here's what's coming: On October 30, 2026, the board will consider another NCD proposal alongside the Q2 results. The size and terms haven't been disclosed yet, so we're in wait-and-see mode on that one.
This is where it gets interesting. Reliance isn't exactly cash-strapped. As of March 31, 2026, the company held around ₹2.5 lakh crore in cash, cash equivalents, and current investments, compared to about ₹1.1 lakh crore in reported current borrowings. Net debt was about ₹1.25 lakh crore. So why tap the debt market? Annual Report
The Investment Pipeline:
Here's where the money is going:
New Energy: Solar PV manufacturing has reached about 1 GW of modules and cells, with a target of 20 GW annual capacity in an integrated setup at Jamnagar. Battery capacity is expected to reach 40 GWh this year, with plans to scale up to 120 GWh. Management says the focus has moved from strategy to execution, with priority on integration at scale and cost leadership. Transcript +1
AI and Data Centers: The annual report states Reliance plans to invest ₹10 lakh crore in multi-GW AI-ready data centers to build sovereign AI infrastructure. That's not small change. Annual Report
O2C and Retail: Continued investment in O2C projects and retail hyper-local delivery. Investor Presentation +1
The Capex Scale:
Management declined to give a full-year FY27 capex figure, saying they pace investments using EBITDA-to-debt ratios and their international credit ratings. This gives them flexibility to adjust based on market conditions. Transcript +1
The ₹30,200 crore Jio Platforms IPO is a key piece of this puzzle. The offer consists entirely of fresh shares - neither Reliance nor existing shareholders are selling. Jio Platforms plans to use up to ₹27,500 crore of the proceeds to repay borrowings at its wholly-owned subsidiary, Reliance Jio Infocomm Ltd.
Moody's calls this "credit positive" for Reliance because it will reduce debt and associated servicing costs, strengthening Reliance's capacity to fund investments without increasing leverage. The agency notes that the principal benefit is greater funding flexibility rather than a material improvement in leverage or liquidity over the next 12 months.
For context, Jio Platforms contributed 37% of Reliance's consolidated EBITDA in FY26. The listing will diversify Jio's funding sources and broaden its access to domestic and international capital for future investments, acquisitions, and strategic partnerships.
Despite the heavy investment plans, Reliance's credit metrics remain strong. Here's the picture:
Debt Profile:
Ratings: S&P A-, Moody's Baa1 - both two notches above India's sovereign rating. Transcript
Moody's forecasts Reliance's adjusted net debt/EBITDA ratio at around 1.0-1.2 times over the next two years, well below the agency's 3.0-times downgrade threshold. The company has stated a framework of maintaining net debt to EBITDA below 1x across business cycles. Investor Presentation
Reliance is managing a classic trade-off: maintain liquidity for operations while funding long-term capex through debt markets. Here's how they're thinking about it:
The Liquidity Cushion: With ₹2.5 lakh crore in cash and investments against ₹1.1 lakh crore in current borrowings, Reliance has substantial liquidity. Moody's calls it "excellent".
The Long-Term Match: The 10-year tenor on the Series R NCDs matches the long-gestation nature of projects like New Energy and data centers. The 7.90% coupon is what AAA-rated Reliance pays in the current market.
The Framework: Management uses a net debt-to-EBITDA framework below 1x and considers its international credit ratings when pacing capex. This gives them flexibility to accelerate or slow investments based on market conditions. Transcript +1
The October 30, 2026 board meeting is crucial. Here's what will matter:
Q2 Results: We'll finally get the Q2 revenue, EBITDA, and segment performance. Key questions: How did O2C margins hold up? Did retail margins stabilize or continue to compress? What's the latest on Jio's subscriber and ARPU trends?
NCD Proposal Details: Size, tenor, coupon, and most importantly, use of proceeds. Is this for general corporate purposes, or is it tied to specific projects?
Capex Guidance: Will management provide more color on FY27 capex plans, or stick to the "we'll pace it based on metrics" approach?
Cash Flow Statement: Q2 cash flow generation and working capital trends will tell us how much internal funding is available for the investment pipeline.
Reliance is in investment mode. The company is pouring money into New Energy, data centers, retail digital commerce, and maintaining its O2C and digital leadership. The Jio IPO provides equity funding for digital investments and debt repayment at the subsidiary level. The NCD issuances provide long-term debt funding at attractive rates.
The balance sheet remains strong, with credit metrics well within comfort zones. The trade-off between liquidity and long-term debt funding is being managed through a disciplined framework that considers leverage ratios and ratings.
We don't have the Q2 numbers yet, but the strategic direction is clear. Reliance is building for the next decade - New Energy, AI infrastructure, digital commerce - and it's using a mix of internal cash generation, equity markets (Jio IPO), and debt markets (NCDs) to fund it.
The October 30 board meeting will fill in the missing pieces. Until then, the baseline from Q1 and the capital allocation moves tell the story of a company in transformation, balancing the needs of existing businesses with the demands of new growth engines.
