Reliance Industries Q1 FY26 Results: Profit Jumps to ₹26,994 Crore, Revenue Up by 5.3%

Reliance Industries Limited, India's largest conglomerate by market capitalisation, delivered a mixed bag of results for the first quarter of FY26, reporting its highest-ever quarterly profit while facing scrutiny from investors over operational performance. The Mukesh Ambani-led company announced consolidated net profit of ₹26,994 crore, marking a remarkable 78% year-on-year growth, though this impressive figure was significantly boosted by one-time gains from strategic divestments.

Key Highlights of the Quarter
Reliance Industries has announced its financial results for the quarter ending June 30, 2025. India's largest conglomerate by market capitalisation reported exceptional performance with significant growth across key financial metrics, though boosted by one-time gains. Check full quarterly results on Reliance Industries Company Page. 

• Net Profit: Stood at ₹26,994 crore, a rise of 78% from the same quarter last year.
• Revenue from Operations: Grew by 5.3% year-on-year to ₹2,48,660 crore.
• EBITDA: Reached ₹58,024 crore, with a margin of 21.2%, marking a 460 basis points improvement.
• Special Income: Benefited from ₹8,924 crore one-time gain from Asian Paints stake sale

Table of Contents:

1. Performance Analysis: A Closer Look
2. Financial Metrics at a Glance
3. Segment-wise Performance
4. Management Commentary & Future Outlook
5. Share Price Impact: Market's Cautious Response to Record Results
6. Frequently Asked Questions (FAQs)

Performance Analysis: A Closer Look

Revenue Growth

Reliance Industries' revenue from operations for Q1 FY26 was ₹2,48,660 crore. This represents a healthy increase compared to ₹2,36,217 crore in the same quarter of the previous fiscal year. The growth was supported by strong performance in consumer-facing businesses, particularly Jio Platforms and Retail, though partially offset by declines in traditional energy segments.

On a consolidated basis including other income, total income reached ₹2,73,252 crore, up 6% year-on-year.

Profitability & Margins

The company's consolidated net profit surged to ₹26,994 crore, representing a remarkable 78% year-on-year growth. However, this includes a significant one-time gain of ₹8,924 crore from the sale of listed investments, primarily Asian Paints shares. Excluding this extraordinary income, the underlying net profit grew by approximately 25% year-on-year.

The consolidated EBITDA margin expanded dramatically to 21.2% from 16.6% in the same quarter last year, an improvement of 460 basis points. Excluding one-time gains, the operational EBITDA grew by 15% year-on-year.

Financial Metrics at a Glance

Here is a simple table showing the company's performance compared to the same quarter last year.

Segment-wise Performance

Digital Services Excellence - Jio Platforms

Jio Platforms delivered stellar performance with net profit jumping 25% year-on-year to ₹7,110 crore. Revenue from operations increased by 19% to ₹35,032 crore, driven by strong subscriber growth and improved monetisation.

Key operational metrics showed robust growth: ARPU rose to ₹208.8, up 15% from ₹181.7 in the same period last year. The subscriber base reached 498.1 million with a net addition of 9.9 million users during the quarter. Notably, Jio crossed 200 million 5G subscribers and achieved 20 million home broadband connections.

Retail Business Steady Growth

Reliance Retail Ventures reported strong performance with net profit rising 28% to ₹3,271 crore. Revenue grew 11.3% year-on-year to ₹84,171 crore, with EBITDA increasing 12.7% to ₹6,381 crore.

The retail arm added 388 new stores during the quarter, bringing the total count to 19,592 stores covering 77.6 million square feet of operational area. The registered customer base expanded to 358 million, demonstrating strong market penetration.

Oil-to-Chemicals Mixed Results

The O2C segment showed resilience despite challenging conditions, with revenue declining 1.5% year-on-year to ₹1,54,804 crore due to lower crude oil prices and planned refinery shutdowns. However, EBITDA grew 10.8% to ₹14,511 crore, supported by favourable domestic fuel retail margins and improvements in transportation fuel cracks.

Oil & Gas Natural Decline

The exploration and production segment recorded revenue of ₹6,103 crore, down 1.2% year-on-year, mainly due to natural decline in KGD6 gas production and lower gas prices for CBM. EBITDA declined 4.1% to ₹4,996 crore due to lower revenues and higher operating costs from maintenance activities.

Management Commentary & Future Outlook

The management expressed strong confidence in the company's strategic direction and growth trajectory. Mukesh D. Ambani, Chairman and Managing Director, stated: "Reliance has begun FY26 with a robust, all-round operational and financial performance. Consolidated EBITDA for 1Q FY26 improved strongly from a year-ago period, despite significant volatility in global macros".

The company reiterated its ambitious guidance to double EBITDA across the group by the end of this decade. Specific growth targets include doubling earnings in Jio and Retail businesses within 3-4 years.

Key strategic focus areas include:

• Accelerating 5G rollout and fixed broadband expansion through Jio

• Strengthening retail portfolio with own FMCG brands

• Advancing new energy projects with planned commissioning of giga-factories over the next 4-6 quarters

• Developing integrated solar manufacturing capabilities from polysilicon to modules

Share Price Impact: Market's Cautious Response to Record Results

Immediate Market Reaction

Reliance Industries shares experienced a notable decline following the announcement of Q1 FY26 results, falling by 2.4% to 2.7% in the immediate trading sessions post-results. The stock closed at ₹1,440 on the NSE, down from ₹1,476 prior to the results announcement, making it one of the top contributors to the Nifty 50's downside movement.

This negative market reaction was particularly striking given that the company reported its highest-ever quarterly profit and beat Street estimates. The disconnect between strong headline numbers and weak stock performance highlighted the market's sophisticated analysis of the underlying business fundamentals.

Key Factors Behind the Negative Reaction

1. One-Time Gains Distort Core Performance: The primary reason for investor skepticism was the significant contribution of one-time gains to the overall profit. The ₹8,924 crore gain from the sale of Asian Paints shares inflated the headline profit figure, with core operational profit growing by a more modest 25% year-on-year.
    
2. Operational Performance Below Expectations: Multiple brokerages noted that the consolidated EBITDA was 3% below estimates, with the Oil-to-Chemicals (O2C) and Retail segments falling short by 5% and 4% respectively. Jefferies specifically highlighted that the operational performance across key segments was underwhelming despite the strong headline numbers.
    
3. Segment-Specific Concerns: The retail segment's revenue growth of 11% came in significantly below the expected 16%, impacted by slower electronics sales due to early monsoon and reduced expansion pace. The O2C business also disappointed with EBITDA down 4% quarter-on-quarter due to planned shutdowns and turnaround activities.

Analyst Recommendations Remain Positive

Despite the immediate negative price reaction, most leading brokerages maintained their bullish stance on RIL shares:

• Nomura: Reiterated Buy rating with target price of ₹1,600, implying 8% upside potential

• Jefferies: Maintained Buy rating with price target of ₹1,726, representing significant upside potential

• JPMorgan: Retained Overweight rating and raised target price to ₹1,695

• Nuvama: Set the highest target at ₹1,767, implying up to 20% upside potential

Out of 37 analysts tracking RIL, 34 maintain 'buy' ratings, one recommends 'hold', and only two suggest 'sell', according to Bloomberg data

Frequently Asked Questions (FAQs)

1. What was Reliance Industries' net profit in Q1 FY26?
Reliance Industries' consolidated net profit for Q1 FY26 was ₹26,994 crore, marking a year-on-year increase of 78%.

2. How did Reliance Industries' revenue change in this quarter?
The company's revenue from operations grew by 5.3% year-on-year to ₹2,48,660 crore in Q1 FY26.

3. What are the key takeaways from Reliance Industries' latest results?
Key takeaways include record-high consolidated profit and EBITDA, strong performance in digital and retail businesses with Jio crossing 200 million 5G subscribers, resilient O2C margins despite volume challenges, and management's confident outlook for doubling business scale over the next 4-5 years.

4. Did Reliance Industries declare any dividend?
Based on the current quarter results, there was no dividend announcement. The company had previously issued a 1:1 bonus share in October 2024 and paid a final dividend of ₹10 per share for FY25.

5. How did different business segments perform?
Jio Platforms led with 25% profit growth and strong subscriber additions, Retail showed 28% profit growth with steady expansion, O2C demonstrated margin resilience with 10.8% EBITDA growth despite revenue decline, while Oil & Gas faced natural production declines but maintained strong margins.

6. What is the company's outlook for future growth?
Management has reaffirmed its goal to double EBITDA by 2029, with consumer businesses (Jio and Retail) expected to double earnings in 3-4 years. New energy projects are on track for commissioning over the next 4-6 quarters.