 "Reliance logo. Reuters")
Reliance Industries Ltd (RIL) began the fiscal year 2026 with a striking 76.5 percent year-on-year increase in net profit to Rs 30,783 crore, significantly driven by a one-time gain of Rs8,924 crore from the sale of its stake in Asian Paints. Even after excluding this exceptional gain, RIL’s recurring profit grew by a robust 25 percent, highlighting the strength of its core businesses, according to Moneycontrol.
Mukesh Ambani, Chairman and Managing Director of Reliance Industries, highlighted the resilience of the conglomerate in the face of global macroeconomic challenges. “Reliance has begun FY26 with a robust, all-round operational and financial performance,” he stated. Ambani attributed this performance to strong earnings from consumer-facing segments and operational agility despite external volatility.
Revenue and operational efficiency
RIL’s consolidated revenue climbed 6 percent to Rs 2.73 lakh crore, reflecting growth across its key verticals, particularly in retail and digital services. The company’s EBITDA jumped 36 percent to Rs 58,024 crore from Rs42,748 crore in Q1FY25. The EBITDA margin rose sharply to 21.2 percent from 16.6 percent in the year-ago period, marking a 460 basis points improvement.
The Economic Times further reported that RIL’s gross revenue stood at Rs 2.73 lakh crore, or $31.9 billion, showcasing the group’s expanding revenue base in both established and emerging sectors.
Jio Platforms: Continued digital dominance
Jio Platforms reported a 25 percent year-on-year increase in net profit, reaching Rs 7,110 crore. Its EBITDA rose nearly 24 percent to Rs 18,135 crore, aided by robust subscriber additions and rising user engagement. Net subscriber additions during the quarter stood at 9.9 million, bringing the total user base to 498.1 million.
The expansion of JioTrue5G played a pivotal role, with 5G subscribers surpassing 200 million. In addition, JioAirFiber emerged as the largest fixed wireless access (FWA) service globally, reaching 7.4 million subscribers.
Akash M Ambani, Chairman of Reliance Jio Infocomm, remarked, “We have delivered a milestone quarter at Jio with our 5G and Home subscriber base crossing the 200 million and 20 million marks respectively.”
Average revenue per user (ARPU) improved to Rs208.8, attributed to recent tariff revisions and seasonal upticks. Total data consumption rose 24 percent year-on-year to 54.7 billion GB, with per capita data usage climbing to 37 GB per month.
Impact Shorts
More ShortsRetail growth powered by expansive footprint
Reliance Retail continued its upward trajectory, with revenue rising 11.3 percent year-on-year to ₹84,171 crore. EBITDA for the retail arm surged 12.7 percent to Rs 6,381 crore. The consumer brands segment, under the FMCG portfolio, registered Rs 11,450 crore in sales—an impressive feat for its second year of operation.
The retail footprint expanded with 388 new store openings during the quarter, pushing the total to 19,592 stores across 77.6 million square feet. Reliance Retail’s registered customer base grew to 358 million, and total transactions increased 16.5 percent to 389 million.
JioMart’s hyperlocal delivery segment witnessed a 68 percent sequential rise in order volumes and a staggering 175 percent year-on-year increase in daily orders, underlining the platform’s growing traction.
“Reliance Retail delivered resilient performance during this quarter driven by our relentless focus on operational excellence, geographical expansion and sharper product portfolio,” said Isha M Ambani, Executive Director, Reliance Retail Ventures Limited.
Media and entertainment see a boost from IPL
The JioStar media and entertainment division clocked gross revenue of Rs 11,222 crore and EBITDA of Rs 1,017 crore, largely driven by the successful IPL season. JioHotstar surpassed 1 billion app downloads on Android, with combined TV and streaming viewership hitting a record 1.19 billion. Monthly active users averaged over 460 million, emphasising the platform’s reach and relevance in India’s evolving entertainment landscape.
Oil-to-chemicals and energy face pressure but stay resilient
Revenue from RIL’s oil-to-chemicals (O2C) business dipped 1.5 percent to Rs1.55 lakh crore due to declining crude oil prices and planned shutdowns. However, the segment’s EBITDA rose 11 percent to Rs14,511 crore, supported by favourable margins in domestic fuel retail and improved spreads in transportation fuels like polypropylene and polyvinyl chloride.
Chairman Mukesh Ambani pointed to energy market uncertainty during the quarter, noting, “Our O2C business delivered strong growth, with thrust on domestic demand fulfilment and offering value-added solutions through Jio-bp network.”
Reliance BP Mobility expanded its retail fuel network to 1,991 outlets, growing faster than the industry average. These domestic placements helped offset global headwinds, showcasing the strength of the company’s localised strategy.
Oil & gas segment faces headwinds
The oil and gas segment experienced a revenue drop of 1.2 percent year-on-year to Rs6,103 crore, while EBITDA declined 4.1 percent to Rs4,996 crore. This performance was impacted by reduced KG-D6 production, lower CBM prices and elevated maintenance-related expenses. Nevertheless, improved price realisation from the remaining KG-D6 gas output offered some cushioning.
The Economic Times highlighted that the lower gas sales were primarily due to natural production decline and weaker price realisation for coal bed methane and crude oil.
Capital allocation and debt position
RIL reported capital expenditure of Rs 29,887 crore for the quarter. Net debt rose marginally from Rs 1,17,083 crore at the end of March to Rs 1,17,580 crore by June 30, indicating a stable financial posture despite ongoing investments across segments.
Outlook and strategic direction
Mukesh Ambani emphasised RIL’s commitment to innovation and customer-centric growth. He reiterated the company’s vision of building a digitally empowered India through inclusive growth in retail, digital services and energy transition. “Our Digital Services business consolidated its market position with a robust financial and operational performance,” Ambani said.
With consumer businesses gaining critical mass, continued investment in digital infrastructure and a stable oil-to-chemicals foundation, RIL appears poised for sustained momentum in the quarters ahead. The Q1FY26 results underline a balanced approach—leveraging scale, tech-driven efficiencies and strategic foresight across all verticals.
RIL shares outperform market
RIL’s stock has climbed 22 percent so far in 2025, significantly outperforming the NSE Nifty 50 Index, which has gained just 6 percent. This marks the company’s strongest relative performance in five years. With $40 billion added to its market capitalisation this year, RIL has contributed nearly a third of the Nifty’s total value addition.
According to a Bloomberg report, analysts attribute this rally to improved refining margins and continued strength in its telecom and retail businesses.
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