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    Reliance Industr

    RELIANCEGood
    Oil, Gas & Consumable Fuels·18 Jan 2026
    Management Summary

    Reliance Industries delivered a robust Q3 FY26, with consolidated revenue growing 10% and PAT increasing 1.6%. Digital services and O2C segments were key drivers of EBITDA growth. Jio Platforms continued its strong subscriber additions and 5G rollout, while Reliance Retail achieved record revenues despite seasonal and demerger impacts. The New Energy segment made significant progress towards its integrated manufacturing and generation targets, reinforcing the company's diversified growth strategy.

    Highlights

    8

    • Consolidated Revenue up 10% YoY, with PAT at ₹22,290 crores, up 1.6% YoY.

    • Consolidated EBITDA grew 6% YoY, driven by strong O2C performance (15% higher EBITDA).

    • Jio Platforms reported operating revenues of ₹37,262 Crores (up 12.7% YoY) and EBITDA of ₹19,303 Crores (51.8% margin).

    • Jio's subscriber base reached 515 million, with 8.9 million net additions and 253 million 5G subscribers.

    • Reliance Retail achieved its highest-ever revenue of ₹97,600 Crores (up 8.1% YoY) and EBITDA of ₹6,915 Crores (8% margin).

    • FMCG (RCPL) turnover exceeded ₹5,000 Crores, marking a 60% YoY increase.

    • New Energy is on track to commission its first fully integrated 10-gigawatt peak annual solar manufacturing gigafactory and expand battery manufacturing to 100-gigawatt hour.

    • O2C segment's EBITDA reached ₹16,507 Crores, a 15% growth over the previous year, benefiting from higher transportation fuel cracks.

    Concerns

    2

    • Weakness in petrochemical margins due to overcapacity

    • Geopolitical environment, tariffs, and supply chain challenges

    Segment breakdown

    • Digital Services (Jio Platforms)₹37,262 Cr26.6%
    • Reliance Retail₹97,600 Cr69.8%
    • FMCG (RCPL)₹5,000 Cr3.6%
    Donut· Share of Revenue

    Guidance & targets

    10
    CategoryTargetPriority
    Capacity
    Integrated Solar Chain Capacity
    20-gigawatt peak
    		High
    Capacity
    Battery Manufacturing Capacity
    100-gigawatt hour
    		High
    Capacity
    Solar Manufacturing Gigafactory Commissioning
    10-gigawatt peak
    		High
    Capacity
    Beverage Capacity Doubling
    doubling
    		High
    Generation
    Electricity Generation Capacity
    300 billion units
    		High
    Generation
    First Generation Commissioning
    start of next fiscal
    		High
    Profitability
    ARPU Growth
    5% to 6%
    		Medium
    Profitability
    Refinery Operating Rates
    80%
    		Medium
    IPO
    Jio IPO Timeline
    next few months
    		Medium
    Project Completion
    Kurnool Beverage Plant Readiness
    ready
    		High

    Risks & concerns

    6
    RiskSeverity

    Weakness in petrochemical margins due to overcapacity

    Ethylene capacity has increased substantially more than demand growth, leading to lower operating rates and extreme stress for naphtha cracking based ethylene producers, with major restructuring happening in Far East Asia. — Management acknowledged

    high

    Geopolitical environment, tariffs, and supply chain challenges

    These factors create volatility and uncertainty, which the integrated New Energy ecosystem is designed to mitigate by ensuring supply chain security and sufficiency. — Management acknowledged

    high

    Natural decline in KG D6 fields and lower gas prices

    The E&P segment's EBITDA was impacted by lower volumes and prices, though efforts are underway to slow the decline and augment production through new wells and workovers. — Management acknowledged

    medium

    Higher finance and depreciation impacting consolidated profit

    Consolidated profit was muted due to increased finance costs and depreciation, primarily driven by the capitalization of 5G assets in Jio. — Management acknowledged

    medium

    Areas of Evasion(2)

    • Quick Commerce cash burn quantum
    • Exact polysilicon plant power consumption

    Q&A highlights

    3

    “The only thing I would say is on a contribution margin level, we are positive.”

    Analyst sought specific financial quantum of cash burn in quick commerce, but management provided a qualitative statement about profitability at a certain level, avoiding a direct number.

    asked by Puneet Gulati

    2 min read

    Detailed Narrative

    Reliance Industries Limited reported a strong Q3 FY26, with consolidated revenue increasing 10% year-on-year and Profit After Tax (PAT) growing 1.6% to ₹22,290 crores. Consolidated EBITDA was up 6%, primarily driven by a robust 15% increase in the Oil to Chemicals (O2C) segment's EBITDA, which reached ₹16,507 Crores. This performance was supported by higher transportation fuel cracks and optimized product mix, despite muted downstream petrochemical performance and increased freight costs due to sanctions. The company's diversified business model was highlighted as a key strength in navigating global uncertainties.

    Jio Platforms continued its impressive growth trajectory, reporting operating revenues of ₹37,262 Crores, a 12.7% year-on-year increase, and an EBITDA of ₹19,303 Crores, maintaining a healthy 51.8% margin. The subscriber base expanded by 8.9 million net additions to a total of 515 million, with 5G users now exceeding 253 million. Average Revenue Per User (ARPU) stood at ₹213.7, with management targeting an organic ARPU growth of 5-6% annually. Reliance Retail achieved its highest-ever revenue of ₹97,600 Crores, an 8.1% increase year-on-year, and an EBITDA of ₹6,915 Crores with an 8% margin. The FMCG business (RCPL) saw its turnover surpass ₹5,000 Crores, up 60% year-on-year, driven by new brand acquisitions and market expansion. Quick commerce orders reached a run rate of 1.6 million, positioning Reliance as the second-largest player.

    In the New Energy segment, significant progress was reported towards establishing a fully integrated ecosystem. The company is on track to commission its first 10-gigawatt peak annual solar manufacturing gigafactory and plans to scale it up to 20-gigawatt peak. Battery manufacturing capacity is also being expanded from 40-gigawatt hour to 100-gigawatt hour. Management confirmed that the first generation capacity, targeting 300 billion units annually (up from a previous target of 150 billion units), is expected to start commissioning within the next 12-15 months. Total capex for the quarter was approximately ₹33,000-34,000 Crores, allocated across O2C expansion (₹9,000 Crores), New Energy (₹8,000 Crores), Jio (₹7,500 Crores), and Retail (₹4,000 Crores).

    During the Q&A session, analysts raised concerns about the quantum of cash burn in quick commerce, to which management responded by stating profitability at a contribution margin level without providing specific figures. The timeline for the Jio IPO was discussed, with management indicating it is imminent, pending regulatory notifications within the next few months. Competitiveness in the New Energy sector against global players like China was addressed by highlighting the strategic advantage of an integrated ecosystem and lower power costs. Key risks acknowledged by management included muted downstream petrochemical performance due to overcapacity, the natural decline in KG D6 fields, and the broader geopolitical environment impacting supply chains, all of which are being actively managed through strategic initiatives and operational efficiencies.

    This is an AI-generated summary of a publicly available earnings call transcript. It is for informational purposes only and does not constitute investment advice, a recommendation, or an endorsement. inve.money is not a SEBI-registered investment advisor. Please consult a qualified financial advisor before making any investment decisions.