Reliance Industries Limited — Q4 FY26 earnings call

Call held 24 Apr 2026

Management summary

Reliance Industries Limited reported a strong FY26 with double-digit growth in revenue and EBITDA, primarily driven by robust performance in Jio Platforms and Retail. However, Q4 saw flat consolidated EBITDA due to challenges in the O2C segment, impacted by geopolitical events, elevated feedstock prices, and the introduction of SAED. The company continues to advance its New Energy initiatives and manage E&P production declines.

Highlights

  • FY26 Revenue increased by 10% and EBITDA by 13.5% for the full year, including a one-time gain from listed shares sale.

  • Jio Platforms reported FY26 Revenue of Rs.1,46,085 Crores (up 14.6% YoY) and EBITDA of Rs.76,255 Crores (up 19% YoY), with EBITDA margin at 52%.

  • Retail achieved its highest-ever Q4 revenue of Rs.98,000 Crores, marking an 11% YoY growth (14% adjusted for RCPL demerger), and Q4 EBITDA of Rs.6,900 Crores.

  • FMCG business delivered FY26 revenue of Rs.22,000 Crores, with Q4 revenue at Rs.7,350 Crores, representing two times growth over the similar period last year.

  • New Energy signed a significant green ammonia supply contract with Samsung C&T, demonstrating confidence in its integrated green energy ecosystem.

Concerns

  • Rupee depreciation was an area of concern, with an 11% depreciation for the year and 4% just in March.

  • Overall RIL Q4 EBITDA growth was flat, with Oil-to-Chemicals (O2C) EBITDA down 4% due to a difficult operating environment.

  • The supply shock and its impact on industry and consumer confidence, coupled with geopolitical issues, remain immediate concerns.

  • Naphtha cracking margins were under severe stress due to elevated feedstock prices, impacting the petrochemical segment.

  • E&P EBITDA margins were slightly lower due to higher operating costs and production decline in KG-D6.

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

  • Overall RIL (FY26)
    10% Revenue Growth13.5% EBITDA Growth24% PAT Growth (Standalone)
  • Overall RIL (Q4 FY26)
    0% EBITDA Growth
  • Consumer Business (Jio + Retail) (Q4 FY26)
    14% EBITDA Growth
  • Oil-to-Chemicals (O2C) (Q4 FY26)
    -4% EBITDA Growth
  • Jio Platforms (Q4 FY26)
    ₹33,381 Cr Revenue₹18,771 Cr EBITDA56.2% EBITDA Margin₹7,935 Cr PAT
  • Jio Platforms (FY26)
    ₹1.46L Cr Revenue₹76,255 Cr EBITDA52% EBITDA Margin₹30,000 Cr PAT
  • Retail (Q4 FY26)
    ₹98,000 Cr Revenue14% Revenue Growth (adjusted)₹6,900 Cr EBITDA7.9% EBITDA Margin₹3,500 Cr PAT
  • Retail (FY26)
    12% Revenue Growth
  • FMCG (FY26)
    ₹22,000 Cr Revenue
  • FMCG (Q4 FY26)
    ₹7,350 Cr Revenue

Capital allocation

high confidence
  • Capex Capex disclosed
    • Land development for green energy complex
    • EPC contracts for transmission lines (Kutch to Lakadia, Kutch to Jamnagar)
    • Green chemicals complex at Jamnagar (green hydrogen, green ammonia trains)
    • Commissioning of solar and battery factories (20 gigawatt integrated capacity)
    • Scaling battery capacity to 100 gigawatt hours (equipment, production line orders placed)
    • First phase of 40-gigawatt manufacturing of BESS and battery cell
    Sh Karan Suri: "entire land development project development work is progressing. The detailed engineering work is already at full speed for the entire 12 parcels of 5.3 lakh acres of land. On the transmission side as many of you may already be aware, we have already awarded the EPC contracts, and the construction is progressing on both the lines. First is from Kutch to Lakadia substation and the second is Kutch to Jamnagar captive line that we are setting up 765 Kw. We have also started work at rapid pace at Jamnagar for the green chemicals complex, where the detailed engineering, fabrication, modularization work is happening at good speed for green hydrogen, green ammonia trains. Walking backwards to the Giga factories and where I have been continuously giving you update over the last few quarters. The commissioning of various factories, both solar and battery again are progressing at good pace. Module and cell which has already been commissioned, number of lines. We have achieved the ALMM listing for both the module and the cell, the first for HJT lines in the country and the work on commissioning of polysilicon, ingot, wafer, solar cell and glass continue to progress well and we aim to commission these factories in next few quarters. As I had already mentioned last time, we have expanded the capacity to 20 gigawatt, fully integrated capacity. So, all the commissioning work, the Giga factories are progressing towards achieving that capacity. On the battery as again, I had mentioned last time that we are now scaling the capacity to 100 gigawatt hours, where the equipment, the production line, equipment orders have already been placed. That effectively makes us one of the largest non-China LFP manufacturer globally, which is significant in this current environment, especially when there has been a significant volatility in lithium carbonate price leading to the battery price volatility. The first phase of 40-gigawatt manufacturing of BESS and the battery cell again is progressing at a rapid pace. We already got the equipments on site. The building construction is progressing rapidly at different stages and progressively we will start commissioning this capacity during the year."
  • Debt Debt disclosed
    Sh V Srikanth: "overall still net debt we have been able to keep that in control or continuing the capex vis a vis what is the cash profit, all of those trends have remained fairly strong and these numbers say that the EBITDA has been at about 0.64, which against what we have been talking about below one."
  • M&A Goodness Group Acquisition · Closed

    Australian-based company into functional beverages and health-based drinks, complementing FMCG portfolio.

    Sh Ashutosh Goyal: "In the last quarter, we made certain investments and M&A acquisitions, this is primarily two categories. One was Goodness Group, which is an Australian based company. They are into functional beverages and health-based drinks."
  • M&A Manna Acquisition · Closed

    100% stake in a Tamil Nadu based company focused on millet-based products, a fast-growing category.

    Sh Ashutosh Goyal: "We also acquired a 100% stake in a company which is Tamil Nadu based and which is have a brand called Manna. They are into millet-based products and again, this is a fast-growing category and will help us and complement our current portfolio."

Guidance & targets

Market Share

  • Jio Platforms Market Share Market Share · ongoing · Medium confidence gain more market share
    We do expect to continue to gain market share in the market.

    — Sh Anshuman Thakur

Growth

  • Digital Services Growth Growth · ongoing · Medium confidence grow faster
    That is expected to grow faster, just because it is growing off a smaller base, the percentage growth will be faster.

    — Sh Anshuman Thakur

ARPU

  • ARPU Increase ARPU · ongoing · Medium confidence some increase (4% to 5%)
    So, you should expect some increase in the ARPU even without any tariff increases and we spoke about this 4% to 5 % kind of number that we have been observing over the last few quarters.

    — Sh Anshuman Thakur

Retail

  • Store Footprint & Productivity Retail · ongoing · Medium confidence continue to increase
    And you will also continue to see the productivity increasing.

    — Sh Dinesh Taluja

New Energy

  • Giga Factories Commissioning New Energy · during the year · High confidence start commissioning
    The building construction is progressing rapidly at different stages and progressively we will start commissioning this capacity during the year.

    — Sh Karan Suri

O2C

  • SAED Revocation O2C · second quarter · Medium confidence likely to get revoked
    Exemption from customs duty on key petrochemical products... is likely to get revoked in the second quarter hopefully.

    — Sh Amit Chaturvedi

What to watch in Q1 FY27

SAED Revocation

next quarter
Current Introduced March 27, 2026, impacting DTA refinery
Target Revoked in the second quarter

Why it matters

Revocation of SAED would improve O2C segment profitability by removing a drag on margins.

Sh Amit Chaturvedi: "Exemption from customs duty on key petrochemical products... is likely to get revoked in the second quarter hopefully."

Risks & concerns

  • Rupee Depreciation

    high

    Rupee depreciated 11% for the year and 4% in March, posing a concern due to widening gaps.

    Management acknowledged

  • Geopolitical Supply Shock & Consumer Confidence

    high

    Supply shock and its impact on industry and consumer confidence, particularly from the Middle East conflict, are significant concerns.

    Management acknowledged

  • Elevated Feedstock Prices & Naphtha Cracking Margins

    high

    Polymer deltas were weaker due to very elevated feedstock prices, leading to severe stress on naphtha cracking margins.

    Management acknowledged

  • LNG Price Volatility & Qatar Field Impact

    high

    LNG prices are volatile, and the impact of the war on the Qatar field (Ras Laffan) affecting 70% of capacity implies a long recovery time (5 years).

    Management acknowledged

  • SAED Introduction

    medium

    The reintroduction of SAED, effective March 27, 2026, impacts the DTA refinery, primarily affecting diesel.

    Management acknowledged

  • Production Decline in KG-D6

    medium

    There is a consistent production decline in KG-D6, though efforts are being made to stabilize and augment production.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
Refinery operation and alternate crude sources Direct
So Venezuelan crude typically tends to be very heavy. It is a very heavy oil, and US of course is lighter crude... we blend the light, medium, heavy and then process it. So, we do not see that as a constraint because Russia is very much like a lookalike to the Middle Eastern crudes.

Analyst questioned the impact of relying on alternate crudes (US, Venezuela) with different chemical compositions on distillate yield, and management clarified their blending capabilities.

Asked by Probal Sen, ICICI Securities

Fuel retail margins and price increases Partial
So, there is some pain, but we have to look at the long-term picture... we will not be making any curtailments there.

Analyst inquired about significant losses in fuel retail and potential price increases, to which management acknowledged pain but emphasized a long-term view and commitment to supply.

Asked by Probal Sen, ICICI Securities

Refining margin environment and procurement costs Direct
So, situation is still maybe I would say from worst to, has come worse... situation is slightly better, but it can just change. We are seeing that every day it changes. So, my guess is as good as anyone's guess here. The way we would look at it is refining is tight. The market has apprehensions of availability of product. So, we think structurally it is likely to remain reasonably strong.

Analyst asked about the volatile refining environment, procurement, freight, and costs, and management provided an outlook of continued tightness and strong structural margins despite daily changes.

Asked by Nitin Tiwari, Phillip Capital

SAED impact on production Direct
See, I think the entire DTA refinery is exposed to the SAED... it is mostly on the diesel that we are experiencing.

Analyst sought clarification on the percentage of production impacted by SAED, and management specified that the entire DTA refinery is exposed, primarily affecting diesel.

Asked by Nitin Tiwari, Phillip Capital

Jio Platforms IPO timeline and AI data center plans Partial
On your second and third question on IPO, we have a statement in today's press release as well. It is fairly imminent. We are working towards it... AI data centers are not being done in Jio Platforms Limited. They are going to be part of the intelligence business, so RIL or the intelligence entity that has already been created.

Analyst asked for updates on the Jio IPO timeline and AI data center plans, with management stating IPO is 'imminent' and clarifying AI data centers are under RIL's intelligence entity, not Jio Platforms.

Asked by Pranav Kshatriya, Emkay

Jio Platforms growth vs Jio's growth and subscriber additions Direct
the digital services are growing off a smaller base. So, in terms of percentage growth, you will expect to see higher growth there... you should expect some increase in the ARPU even without any tariff increases and we spoke about this 4% to 5 % kind of number that we have been observing over the last few quarters.

Analyst questioned why JPL's growth was higher than Jio's and if subscriber additions would accelerate without tariff hikes, with management explaining digital services' smaller base and expected ARPU increase from organic routes.

Asked by Deepti Chaturvedi, CLSA

Retail quick commerce competition and consolidation Evasive
I do not think I would be able too early. Let us see how the industry evolves. There are quite a few players. So, we will see.

Analyst asked about the competitive landscape in quick commerce and potential industry consolidation, but management deferred on providing a specific outlook.

Asked by Manish Adukia, Goldman Sachs

FMCG revenue contribution from other brands Direct
our beverage category, the revenue is more than about Rs. 6,000 Crores and similarly, when I talked about Independence brand, it was one part of the category for our daily essentials. So, the other larger contributor for this whole category is daily essentials for our business right now, which is almost contributing about 40% to the revenue.

Analyst asked about other brands contributing to FMCG revenue beyond Campa and Independence, and management clarified daily essentials contribute almost 40%.

Asked by Vikash Jain, CLSA

3 min read 7 chapters

Detailed narrative

Group Performance Overview

Reliance Industries Limited reported a robust full year FY26, with revenue increasing by 10% and EBITDA by 13.5%, including a one-time gain from the sale of listed shares. Consumer businesses, comprising Jio and Retail, contributed over 55% of the total EBITDA. While overall Q4 EBITDA growth was flat, the consumer segment demonstrated strong performance, growing 14%, which helped negate a 4% decline in the Oil-to-Chemicals (O2C) segment.

Jio Platforms Sustains Strong Growth

Jio Platforms continued its impressive trajectory, ending FY26 with 524 million subscribers, adding 36.3 million during the year. The 5G user base grew by 77 million to 268 million, making it the largest outside of China. For FY26, Jio Platforms reported revenue of Rs.1,46,085 Crores, up 14.6% YoY, and EBITDA of Rs.76,255 Crores, up 19% YoY, achieving an EBITDA margin of 52%. Q4 revenue stood at Rs.33,381 Crores with EBITDA of Rs.18,771 Crores and PAT of Rs.7,935 Crores, growing 13% YoY.

Retail Business Achieves Record Revenues

Reliance Retail delivered its highest-ever quarterly revenue in Q4 FY26, reaching Rs.98,000 Crores. This represents an 11% YoY growth for the full quarter, or nearly 14% when adjusted for the RCPL demerger. Q4 EBITDA was Rs.6,900 Crores, with a margin of 7.9%, and PAT reached Rs.3,500 Crores. The business expanded its footprint, crossing 20,000 stores with 333 new additions during the quarter, and saw significant growth in hyperlocal e-commerce, with average daily orders up 30% QoQ and 300% YoY.

FMCG Business Expands Rapidly

The FMCG business closed FY26 with a revenue of Rs.22,000 Crores, and Q4 revenue alone was Rs.7,350 Crores, marking a two-fold growth YoY. The Campa brand achieved Rs.4,700 Crores in revenue, becoming the fourth-largest carbonated soft drink brand. The Independence brand delivered Rs.2,600 Crores for the year. The package drinking water business is now the third-largest player in the country. The company also expanded its international presence to 40 countries and made strategic acquisitions of Goodness Group and Manna to bolster its portfolio.

O2C Segment Navigates Geopolitical Headwinds

The O2C segment faced a challenging quarter, with EBITDA declining 4% QoQ. Geopolitical tensions, particularly the Middle East conflict and the Strait of Hormuz blockage, led to supply shocks, skyrocketing freight and insurance costs, and elevated crude premiums (up to $20-30/barrel). Naphtha cracking margins were under severe stress due to high feedstock prices. The introduction of SAED (Special Additional Excise Duty) on March 27, 2026, further impacted the DTA refinery, primarily affecting diesel.

New Energy Project Execution Accelerates

Reliance's New Energy initiatives are progressing rapidly. The company signed a major green ammonia supply contract with Samsung C&T, validating its integrated green energy ecosystem. Land development and EPC work for transmission lines and the green chemicals complex at Jamnagar are underway. Commissioning of solar and battery factories, aiming for 20 gigawatt integrated capacity, is on track, with the first phase of 40-gigawatt BESS manufacturing also advancing.

Exploration & Production Update

The E&P segment saw production remain relatively steady, with a decline managed to 8% against an envisaged 12-14%. However, EBITDA margins were slightly lower due to increased operating costs. Production in the CBM field continued to grow. The government's reallocation of KG-D6 gas to city gas distribution and the impact of the Qatar field issues on LNG prices were noted as significant factors affecting the market.

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