Reliance Industries Limited — Q1 FY26 earnings call

Call held 18 Jul 2025

Management summary

Reliance Industries Limited delivered a strong Q1 FY26 performance, marked by robust growth across its diversified segments. Jio Platforms continued its market leadership with significant subscriber additions and margin expansion, while Reliance Retail showed resilient revenue and EBITDA growth. The New Energy business is rapidly progressing towards full-scale operationalization, and the O2C segment benefited from favorable market dynamics, contributing to a healthy overall financial outcome for the quarter.

Highlights

  • Overall Revenue increased 6% YoY, with reported EBITDA at ₹58,000 Crores, up 36% YoY (including a gain from Asian Paints sale). Recurring EBITDA and PAT were up 15% and 25% respectively.

  • Jio Platforms reported operating revenue of ₹35,032 Crores, a 19% YoY increase, with EBITDA growing 24% YoY to ₹18,135 Crores and EBITDA margin expanding 210 bps to 56%.

  • Reliance Retail's revenues grew 11% YoY, and EBITDA increased 12.7% YoY, achieving an EBITDA margin of 8.7% (up 20 bps).

  • The FMCG business demonstrated significant growth, with revenue doubling YoY to ₹4,400 Crores.

  • Jio Platforms added 9.9 million net subscribers, reaching a total of 498.1 million, and 5G subscribers reached 210 million with 20 million additions during the quarter.

  • Average Revenue Per User (ARPU) for Jio grew to ₹209, and total data consumption increased 24% YoY to 55 billion GBs.

  • The O2C segment's EBITDA was ₹14,511 Crores, up 10.8% YoY, driven by improved fuel cracks and strong domestic placement.

  • New Energy is on track to operationalize its entire ecosystem in the next four to six quarters, targeting 55 compressed biogas plants by the end of this year.

What they filed

Q1 FY27: revenue up 27.0%, net profit down 24.6% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue2,31,535 2,39,986 2,61,388 2,43,632 2,54,623 +10%2,64,905 +10%2,94,059 +12%3,09,468 +27%
EBITDA39,058 43,789 43,832 42,905 45,885 +17%46,018 +5%44,141 +1%47,517 +11%
Net profit19,323 21,930 22,611 30,783 22,092 +14%22,290 +2%20,589 −9%23,196 −25%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

Share of Revenue
₹49,032 Cr Total
  • Jio Platforms ₹35,032 Cr 71.4%
  • JioStar ₹9,600 Cr 19.6%
  • FMCG ₹4,400 Cr 9.0%

Guidance & targets

Capacity

  • New Energy Production Potential Capacity · Low confidence 125 gigawatts
    which means that technically you are in a position to have 125 gigawatts of production.

    — Sh V Srikanth

New Energy

  • Compressed Biogas Plants New Energy · by the end of this year · High confidence 55
    Well on our target to achieve 55 compressed biogas plants by the end of this year

    — Sh Karan Suri

  • Ecosystem Operationalization New Energy · next four to six quarters · High confidence full-scale basis
    we will start operationalizing this new energy ecosystem in next four to six quarters on a full-scale basis.

    — Sh Karan Suri

  • Cell Manufacturing New Energy · next quarter or so · High confidence start commissioning
    in next quarter or so we will start commissioning our cell manufacturing.

    — Sh Karan Suri

  • Module Installation Rate New Energy · at fully operational scale · High confidence around 50 megawatt of modules each day
    we will be pretty much installing around 50 megawatt of modules each day, 175-megawatt hour batteries each day at fully operational scale.

    — Sh Karan Suri

Cost Reduction

  • Power Cost & Energy Consumption Bill Cost Reduction · High confidence at least 25%
    reduces the power cost and the energy consumption bill for various Reliance Group captive customers by at least 25%

    — Sh Karan Suri

Retail

  • Business Doubling Retail · every 3 to 4 years · High confidence double our business
    our chairman laid down in the last AGM of doubling our business every 3 to 4 years.

    — Sh Dinesh Taluja

Jio Platforms

  • Homes Connected Jio Platforms · near time · High confidence 100 million
    The targets of 100 million seem much more doable and in near time based on the use of this technology.

    — Sh Anshuman Thakur

  • Digital Services Growth Rate Jio Platforms · Medium confidence 30% plus
    For last few quarters, we clearly see the growth at 30% plus rate. Is this something which is sustainable? What are some of the drivers out here? So, it is sustainable.

    — Sh Anshuman Thakur

  • Digital Services Margins Jio Platforms · Medium confidence improve
    Should improve with revenues increasing, but currently the margins are lower because we are still in that build phase really.

    — Sh Anshuman Thakur

Risks & concerns

  • Natural decline in KGD6 gas production and impact of planned maintenance shutdowns.

    medium

    Decline is lower than initially envisaged, and exploration/additional wells are underway to augment production by H2 2028.

    Management acknowledged

  • Volatility in crude oil prices and geopolitical events impacting fuel cracks and supply chain disruptions.

    medium

    Crude oil prices were volatile ($60-$80), and Middle East conflict/tariff wars caused supply chain disruptions, but diversification and refining flexibility help manage impact.

    Management acknowledged

  • Overcapacity in China and global chemical margins remaining constrained.

    medium

    China's new crackers are adding pressure on global operating rates, but Reliance focuses on the domestic market and leverages supply chain disruptions.

    Management acknowledged

  • Seasonal weakness and early monsoon impacting consumer electronics sales in retail.

    low

    Q1 is seasonally weak, and the impact is temporary; growth is expected to pick up in Q2 and Q3 with festive season.

    Management downplayed

  • Softening in the FMCG sector impacting TV entertainment ad segment.

    low

    The ad segment has been slightly soft in the last two quarters, but management is hopeful for stronger numbers with the upcoming season.

    Management acknowledged

Areas of evasion (1)

  • Internal vs. third-party revenue split for JPL digital services

Q&A highlights

3 direct
Translation of Jio's in-house tech stack into financial performance (market share, margins, capex) and sustainability of incremental margins. Direct
On the first one, having our own technology and having control over that tech stack and being able to modify it in the way that we need it for our consumer services is going to have benefits across it just about everything. On the revenue side, we can ramp up much faster because all of this is completely in our control versus working with a vendor... On the cost side, it is very advantageous because you are not paying some huge license fee to somebody.

This question sought to understand how Jio's proprietary technology translates into tangible financial benefits and competitive advantages, providing insight into future growth and profitability drivers.

Asked by Manish Adukia, Goldman Sachs

Reliance Retail's quick commerce strategy, including the role of dark stores, 15-minute delivery, and the approach to inorganic growth. Direct
See we are already building dark stores. Now the logic of dark stores it is not that if I have an existing store, if it is within the right radius, you can meet that SLA, right. A lot of our orders actually get delivered within 10 to 15 minutes. 30 minutes is the outer limit... Organic versus inorganic, it is an interesting one. We are as of now focusing, I would say. It makes sense. It is very difficult to integrate somebody with your existing network.

This clarified Reliance Retail's strategic direction in the competitive quick commerce space, emphasizing organic growth, leveraging existing infrastructure, and their stance on delivery speed and market coverage.

Asked by Manish Adukia, Goldman Sachs

The impact of past streamlining operations on Reliance Retail's revenue and margins, and the current status of the FMCG business demerger. Direct
If you look at last year, right, last year, a lot of streamlining was done, a lot of stores were closed. My net addition was very, very small, right? In spite of that, we had a pretty decent, growth. Now, that streamlining is past us, right? So, you would see acceleration of growth because logically as I am adding more stores, as I am accelerating my B2B and my online quick commerce businesses that will start contributing to meaningful revenue growth.

This question provided crucial context for Reliance Retail's recent performance and future outlook, indicating an expected acceleration in growth as past streamlining efforts conclude and new initiatives scale up. It also confirmed the FMCG demerger is awaiting regulatory approvals.

Asked by Vikash Jain, CLSA

2 min read

Detailed narrative

Reliance Industries Limited reported a robust financial performance for Q1 FY26 (April-June 2025). The company's overall revenue increased by 6% year-on-year, with a significant 36% rise in reported EBITDA to ₹58,000 Crores. This EBITDA figure included a gain from the sale of Asian Paints shares; excluding this, recurring EBITDA and PAT still showed strong growth of 15% and 25% respectively.

Jio Platforms continued its impressive trajectory, with operating revenues growing 19% YoY to ₹35,032 Crores. The segment's EBITDA surged 24% YoY to ₹18,135 Crores, and its EBITDA margin expanded by 210 basis points to reach 56%. Net subscriber additions were strong at 9.9 million, bringing the total subscriber base to 498.1 million. The 5G subscriber base also saw substantial growth, adding 20 million users to reach 210 million. Average Revenue Per User (ARPU) for Jio stood at ₹209, and total data consumption increased by 24% YoY to 55 billion GBs.

Reliance Retail demonstrated resilient growth, with revenues up 11% YoY and EBITDA increasing 12.7% YoY, achieving an EBITDA margin of 8.7%. The FMCG business was a standout performer, doubling its revenue YoY to ₹4,400 Crores. The O2C segment also contributed positively, with EBITDA growing 10.8% to ₹14,511 Crores, benefiting from improved fuel cracks and strong domestic market placement.

Management outlined ambitious targets, particularly for the New Energy segment, which is expected to operationalize its entire ecosystem on a full-scale basis within the next four to six quarters. Key initiatives include achieving 55 compressed biogas plants by the end of this year and reducing power costs for captive customers by at least 25%. For Reliance Retail, the company reiterated its vision to double the business every 3 to 4 years, with an expected acceleration in growth as past streamlining efforts conclude. Jio Platforms aims to connect 100 million homes in the near future, leveraging its unique UBR technology.

During the Q&A, analysts probed into the financial translation of Jio's in-house tech stack, Reliance Retail's quick commerce strategy, and the impact of past streamlining on retail performance. Management affirmed the benefits of proprietary technology for faster scaling and cost efficiency, detailed their organic growth approach for quick commerce, and indicated that retail growth is set to accelerate. Risks such as natural decline in KGD6 gas production, crude price volatility, and overcapacity in chemicals were acknowledged, with management highlighting mitigation strategies like diversification and domestic market focus. Seasonal weakness in retail and softening in FMCG ad spend were noted as temporary factors.

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