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.