Detailed Narrative
Reliance Industries Limited reported a robust performance for Q2 FY26 (July-September 2025), with overall EBITDA exceeding ₹50,000 Crores, marking a strong 15% year-on-year growth. Profit After Tax (PAT) also saw a healthy increase of 14% YoY, reaching ₹22,100 Crores. This growth was achieved despite a 10% increase in overall revenues, indicating improved operational efficiency and margin expansion. The company's CAPEX for the quarter stood at approximately ₹40,000 Crores, largely in line with its cash profits, maintaining a broadly flat net debt position.
The digital services and retail segments were key drivers of this performance. Jio Platforms reported consolidated operating revenue of ₹36,332 Crores, with EBITDA growing 18% to ₹18,757 Crores, and PAT increasing 13% YoY to ₹7,375 Crores. The connectivity business (RJIL) alone contributed ₹31,857 Crores in operating revenue, growing 12.4% YoY, with an EBITDA of ₹17,874 Crores (up 17.4% YoY) and a strong margin of 56.1%. Jio's total customer base expanded to 506.4 million, adding 8.3 million net subscribers, and the Average Revenue Per User (ARPU) stood at ₹211.4. Reliance Retail also delivered impressive results, with gross revenue up 18% and EBITDA from operations up 17%. The FMCG business demonstrated significant traction, achieving a 2x YoY growth in H1, with Q2 top line at ₹5,400 Crores. Media (JioStar) reported revenues of ₹6,179 Crores, an EBITDA of ₹1,738 Crores, and a PAT of ₹1,326 Crores, boasting an industry-leading EBITDA margin of 28.1%.
The O2C (Oil-to-Chemicals) business also contributed positively, with revenue up 3.2% and EBITDA increasing 20.9%, leading to a 130 basis point margin expansion. This was primarily attributed to improved fuel cracks across gasoline, gas oil, and ATF, alongside optimized crude throughput which reached 20.8 million tonnes. Upstream (E&P) EBITDA remained stable at around ₹5,000 Crores, though slightly lower due to natural field decline. The New Energy segment is rapidly advancing its manufacturing ecosystem, with solar cell gigafactories expected to start next month (November 2025) and the first battery factories by early next year (2026). The company is scaling its solar PV module production capacity to 20 gigawatts and targeting 40 gigawatt hours for battery manufacturing, with the first RERTC production anticipated next year. Reliance also reiterated its commitment to achieving net carbon zero for internal requirements by 2030.
During the Q&A session, management addressed various topics, including the future of Jio tariffs, AI investments, and JioMart's quick commerce strategy. While specific plans for a base tariff hike were not disclosed, management indicated a focus on nudging consumers towards higher consumption. On AI, Reliance Intelligence plans to develop data center capacity of "little over 100 megawatt over the next two years," with monetization expected to "evolve over the next few quarters." JioMart's differentiated strategy, emphasizing widest assortment, best pricing, and no hidden charges, was highlighted as a key competitive advantage in the quick commerce space.
Key risks and concerns discussed included geopolitical tensions impacting oil infrastructure and crude prices, the natural decline in KG-D6 fields, and global overcapacities in the petrochemical sector. Management acknowledged these challenges and outlined mitigation strategies, such as proactive exploration for E&P and a focus on the domestic market for petrochemicals. The impact of heavy rains on PVC and PET demand and Suez Canal disruptions affecting ethane supply were noted as temporary issues, with recovery expected. The overall tone remained bullish, with strong confidence in the company's strategic direction and execution across its diverse portfolio.