Reliance Q2 FY26 Results Analysis: Profit Rises 10% as Jio & Retail Shine

Reliance Industries Limited (RIL) announced a resilient performance for the second quarter of fiscal year 2026, with a consolidated net profit of Rs. 18,165 crore, marking a nearly 10% increase year-on-year (YoY). This growth was powered by a robust showing from its consumer-facing behemoths, Reliance Jio and Reliance Retail, complemented by a steady recovery in its traditional Oil-to-Chemicals (O2C) business.​

For investors seeking a clear picture beyond the numbers, RIL's results demonstrate the strength of its diversified model. While the headline profit showed a sequential decline, this was due to a one-off gain in the previous quarter, with the underlying operational momentum remaining strong across all key segments. This in-depth analysis breaks down the performance and what it means for the road ahead.​

Table of Contents

1. How Did Reliance Industries Perform in Q2 FY26?
2. Segment Deep Dive: How Did Jio and Retail Perform?
3. What Drove the Recovery in the Oil-to-Chemicals (O2C) Business?
4. Why Did RIL's Profit Fall from the Previous Quarter?
5. The Investor's Bottom Line: Key Takeaways from Q2
6. Frequently Asked Questions (FAQs)

How Did Reliance Industries Perform in Q2 FY26?

RIL posted healthy year-on-year growth, though it missed some analyst estimates on profitability. Revenue from operations for the quarter ending 30 September 2025, rose by nearly 10% YoY to Rs. 2.59 lakh crore.​

Key Financial Highlights for Q2 FY26

The company's EBITDA margin improved to 17.8%, showcasing better operational efficiency during the quarter.​

Segment Deep Dive: How Did Jio and Retail Perform?

The consumer businesses continued to be the primary growth engines, delivering strong, double-digit growth.

1. Jio Platforms (Digital Services)

Jio sustained its impressive momentum, crossing a major milestone in its subscriber base.

• Subscriber Growth: Jio's total subscriber base crossed the 500 million mark, reaching 506 million users.​

• Financial Performance: Revenue from operations grew by a strong 14.9% YoY to Rs. 42,652 crore, while EBITDA surged 17.7% YoY to Rs. 18,757 crore.​

• ARPU Improvement: The Average Revenue Per User (ARPU), a key metric for profitability, increased to Rs. 211.4, up 8.4% YoY, driven by higher customer engagement and the adoption of 5G services.​

• Data Consumption: Total data traffic on the Jio network saw a massive 29.8% YoY increase, highlighting the rapid adoption of digital services.​

2. Reliance Retail Ventures

The retail segment delivered another quarter of robust performance, driven by aggressive expansion and growth across all consumption categories.

• Revenue Growth: Revenue surged by 18% YoY to Rs. 90,018 crore.​

• Profitability: EBITDA for the retail arm grew by 16.5% YoY to Rs. 6,816 crore.​

• Store Expansion: Reliance Retail continued its rapid expansion, opening 412 new stores during the quarter, bringing the total count to 19,821.​

• Broad-based Growth: The growth was strong across all segments: grocery grew by 23%, fashion and lifestyle by 22%, and consumer electronics by 18% YoY.​

What Drove the Recovery in the Oil-to-Chemicals (O2C) Business?

The O2C business showed a solid recovery, with EBITDA growing by nearly 21% YoY to Rs. 15,008 crore. This was supported by improved fuel margins and a higher refining throughput. However, the segment's revenue saw a modest 3.2% YoY increase as downstream chemical margins remained under pressure due to global oversupply.​

Why Did RIL's Profit Fall from the Previous Quarter?

On a sequential basis, RIL's net profit saw a steep 33% decline from the June quarter (Q1 FY26). This was primarily due to an exceptional one-off gain of Rs. 8,924 crore in Q1 from the sale of its stake in Asian Paints. Therefore, the year-on-year comparison is a more accurate reflection of the company's underlying operational performance.​​

The Investor's Bottom Line: Key Takeaways from Q2

• Diversification is a Strength: The stellar performance of Jio and Retail provided a strong cushion and drove overall profitability, proving the success of RIL's diversification strategy.​

• Jio's Monetisation is on Track: The consistent rise in ARPU and the growing 5G user base are clear indicators of Jio's ability to monetise its massive subscriber base effectively.

• Retail Continues its Dominance: Relentless store expansion and strong double-digit growth across all verticals underscore Reliance Retail's unmatched dominance in the Indian retail landscape.

• O2C Business is Stabilising: While the O2C segment's profitability has recovered, it remains subject to global commodity cycles and demand-supply dynamics.​

Frequently Asked Questions (FAQs)

What was Reliance Industries' net profit in Q2 FY26?
RIL reported a consolidated net profit of Rs. 18,165 crore for Q2 FY26, a nearly 10% increase year-on-year.​

Why did RIL's profit decline from the previous quarter?
The 33% sequential profit decline was due to a one-off exceptional gain of Rs. 8,924 crore in the June quarter (Q1) from a stake sale. The year-on-year growth of 10% is more indicative of the company's operational performance.​

How many subscribers does Jio have now?
As of September 2025, Jio's subscriber base crossed the 500 million milestone, reaching 506 million users.​

How did Reliance Retail perform in Q2?
Reliance Retail's revenue grew by a strong 18% year-on-year, and the company added 412 new stores during the quarter, continuing its aggressive expansion.​

What is the outlook for RIL's Oil-to-Chemicals (O2C) business?
The O2C business showed a recovery in profitability with a 21% YoY growth in EBITDA, driven by better fuel margins. However, downstream chemical margins remain under pressure due to global overcapacity.