Reliance Industries Limited — Q2 FY26 earnings call

Call held 17 Oct 2025

Management summary

Reliance Industries Limited delivered a strong Q2 FY26 performance, with overall EBITDA surpassing ₹50,000 Crores and PAT growing 14% YoY to ₹22,100 Crores. Key segments like Jio Platforms, Reliance Retail, and Media demonstrated robust growth, driven by customer additions, market expansion, and strategic initiatives. The New Energy segment is progressing rapidly towards its manufacturing and deployment targets, while the O2C business benefited from improved fuel cracks despite volatile crude prices.

Highlights

  • Overall EBITDA exceeded ₹50,000 Crores, marking a 15% YoY increase.

  • Profit After Tax (PAT) reached ₹22,100 Crores, up 14% YoY.

  • Jio Platforms reported an 18% YoY EBITDA growth, with consolidated operating revenue at ₹36,332 Crores and PAT at ₹7,375 Crores (up 13% YoY).

  • Reliance Retail achieved 17% YoY EBITDA growth and 18% YoY gross revenue growth, with FMCG business growing 2x YoY in H1 to ₹5,400 Crores in Q2.

  • Media (JioStar) recorded a 28.1% EBITDA margin, with revenue at ₹6,179 Crores, EBITDA at ₹1,738 Crores, and PAT at ₹1,326 Crores.

  • The Energy business saw a 21% increase, driven by improved fuel cracks, with O2C EBITDA up 20.9% and margin up 130 basis points.

  • Jio's total customer base grew to 506.4 million, adding 8.3 million net subscribers, and ARPU stood at ₹211.4.

  • New Energy initiatives are on track, with solar cell gigafactories starting next month and first battery factories by early next year, targeting 40 gigawatt hours of battery manufacturing capacity.

Concerns

  • Geopolitical Tensions & Oil Infrastructure Disruptions

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
₹79,768 Cr Total
  • Jio Platforms (Consolidated) ₹36,332 Cr 45.5%
  • Jio Connectivity (RJIL) ₹31,857 Cr 39.9%
  • Media (JioStar) ₹6,179 Cr 7.7%
  • FMCG ₹5,400 Cr 6.8%

Guidance & targets

New Energy - Manufacturing

  • Solar Cell Gigafactories Start-up New Energy - Manufacturing · Q3 FY26 · High confidence next month
    So, I am happy to say that our solar cell gigafactories will be starting up in the next month at Jamnagar.

    — Sh Sriram Ramakrishnan

  • First Battery Factories Start-up New Energy - Manufacturing · FY27 · High confidence early next year
    So happy to say that we are making very good progress in starting up our first battery factories by early next year.

    — Sh Sriram Ramakrishnan

New Energy - Capacity

  • Solar PV Module Production Capacity New Energy - Capacity · null · High confidence 20 gigawatt

    Previously 10 gigawatt → 20 gigawatt

    We started with an announcement of 10 gigawatt-peak, which we are now scaling up to 20 gigawatt of solar PV module production completely vertically integrated.

    — Sh Sriram Ramakrishnan

  • Battery Energy Storage Manufacturing Capacity New Energy - Capacity · null · High confidence 40 gigawatt hours
    we have made significant progress at site for a 40-gigawatt hour manufacturing capacity on batteries.

    — Sh Sriram Ramakrishnan

New Energy - Production

  • RERTC First Production New Energy - Production · FY27 · High confidence next year
    So, we are looking to finally start adding to the revenue and EBITDA of Reliance with starting our first production of RERTC next year.

    — Sh Sriram Ramakrishnan

New Energy - Sustainability

  • Net Carbon Zero for Internal Reliance Requirements New Energy - Sustainability · by 2030 · High confidence by 2030
    But yes, our target is we should, ahead of what we have committed, we should achieve in terms of the net carbon zero for internal reliance requirements.

    — Sh Sriram Ramakrishnan

Petrochemicals - Project Completion

  • PVC Project Completion Petrochemicals - Project Completion · FY27 · Medium confidence next year end
    As of now, our target is to complete them by next year, next year end, calendar year end. That is the target we are running with. But these are, as I said, I am talking about PVC project right now.

    — Sh Amit Chaturvedi

  • PTA Polyester Project Completion Petrochemicals - Project Completion · FY27 · Medium confidence next year end
    We have two large projects which are under execution today, the PVC project and the PTA polyester project, both are under execution stage, and we will continue to work aggressively to expedite them.

    — Sh Amit Chaturvedi

Jio Platforms - Connectivity

  • New Home Connections Run Rate Jio Platforms - Connectivity · null · Medium confidence ramp up this rate
    No, we are expecting to ramp up this rate. The run rate for connecting new homes has been increasing and the technology is working well. A lot of these new connections are being done wirelessly and therefore the implementation itself is simpler, faster and we are expecting that we will be able to scale this up quite significantly from where we are today.

    — Sh Anshuman Thakur

Jio Platforms - AI

  • AI Use Cases Monetization Jio Platforms - AI · next few quarters · Low confidence evolve over the next few quarters
    So, it is going to evolve over the next few quarters.

    — Sh Anshuman Thakur

Reliance Intelligence - Capex

  • Data Center Capacity Reliance Intelligence - Capex · next two years · Medium confidence little over 100 megawatt
    Well, we have started with the first phase of the GCP project itself and that will evolve into little over 100 megawatt over the next two years and then we will keep developing, but of course, we are also talking with partners on doing something more jointly. At this point, those numbers are not firmed up.

    — Sh Anshuman Thakur

Reliance Retail - Growth

  • TV Entertainment Sales Reliance Retail - Growth · quarters ahead · Medium confidence much better
    TV entertainment sales continue to see pressure, mainly because of FMCG having major cuts, but with the GST, we are seeing green shoots, and we expect the quarters ahead to be much better.

    — Sh Kevin Vaz

  • BAU Growth Reliance Retail - Growth · going forward · High confidence BAU growth going forward
    But the closures are more or less normalized, and you will see BAU growth going forward.

    — Sh Dinesh Taluja

Risks & concerns

  • Geopolitical Tensions & Oil Infrastructure Disruptions

    high

    Drone attacks between Russia and Ukraine affecting oil infrastructure, leading to product supply risks and supporting high fuel cracks.

    Management acknowledged

  • Natural Decline in KG-D6 Fields

    medium

    Natural decline in production from KG-D6 fields, being addressed by drilling new wells and sidetracks.

    Management acknowledged, proactive mitigation

  • Global Cracker Overcapacities & Weak Demand

    medium

    Global cracker operating rates remain weak due to weak demand and overcapacities, especially in China.

    Management acknowledged, focus on domestic market

  • Adverse Weather Conditions (Rains/Floods)

    low

    Heavy rains and floods in India impacted demand for PVC and PET, expected to bounce back as seasonality ends.

    Management acknowledged, expected to normalize

  • Suez Canal Disruptions

    low

    Suez Canal disruptions slightly impacted ethane availability, with new vessels ordered to improve supply.

    Management acknowledged, mitigation in progress

Areas of evasion (3)

  • Jio tariff hike
  • granular details on AI capex beyond initial phase
  • specific timelines for AI monetization

Q&A highlights

1 direct, 1 evasive
Jio Tariff Hike Plans Evasive
At this point in time those will happen when they will happen. There are no current plans to change anything on it. We are nudging consumers to consume more and happily pay more but no immediate plans for the tariff.

Directly addresses a key investor concern about ARPU growth drivers, but management avoids committing to a timeline or specific plan.

Asked by Sumangal Nevatia, Kotak Securities

Reliance Intelligence Capex & AI Monetization Timeline Partial
Well, we have started with the first phase of the GCP project itself and that will evolve into little over 100 megawatt over the next two years and then we will keep developing, but of course, we are also talking with partners on doing something more jointly. At this point, those numbers are not firmed up.

Reveals some capex scale for data centers but remains vague on overall AI investment and monetization timelines, which are crucial for valuing the new venture.

Asked by Sachin Salgaonkar, Bank of America

JioMart Quick Commerce Model Differentiation Direct
My proposition is the strongest because I have the widest assortment, right? I have the best pricing. We do not differentiate between pricing in our stores and on JioMart, right? Thirdly, we do not have any hidden charges. We do not, what you see is what you get. You don't get any charges when you are checking out which are not transparent in nature. Right. So that proposition is clicking well with the customers.

Provides a clear explanation of JioMart's competitive strategy and differentiation in the rapidly growing quick commerce market, addressing concerns about its model and profitability.

Asked by Aditya Suresh, Macquarie

3 min read

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.

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