Reliance Industries Limited reported its highest-ever quarterly consolidated earnings in Q2 FY27, with gross revenue rising 27.8% year-on-year (YoY) to ₹3,62,268 crore. EBITDA increased 23.9% to ₹62,409 crore, while consolidated profit after tax (PAT), including associates and joint ventures, grew 33.8% to ₹29,550 crore.
The Reliance Industries Q2 FY27 Results, announced on 30 October 2026, were primarily driven by record profitability in the Oil-to-Chemicals (O2C) business and continued growth in Jio's digital services. However, Reliance Retail reported lower profits despite revenue growth, while finance costs increased.
This Reliance Industries Q2 FY27 Results Analysis examines the company's financial performance, segment-wise earnings, Jio Platforms listing, cash flow, debt position and key factors investors should monitor.
Table of Contents
- Reliance Industries Q2 FY27 Results: Key Highlights
- Reliance Industries Q2 FY27 Financial Performance
- Reliance Industries H1 FY27 Results
- Reliance Industries Q2 FY27 Segment-Wise Performance
- Reliance O2C Q2 FY27 Results
- Jio Platforms Q2 FY27 Results
- Reliance Retail Q2 FY27 Results
- Reliance Consumer Products Q2 FY27 Performance
- Reliance Oil & Gas Q2 FY27 Results
- JioStar Q2 FY27 Results
- Reliance Industries H1 FY27 Cash Flow Analysis
- Reliance Industries Capex and Debt Position
- Jio Platforms IPO and Its Impact on RIL
- Reliance New Energy Business Outlook
- Reliance Industries Share Price Reaction
- Key Risks for Reliance Industries Investors
- What Investors Should Track Next
- Conclusion
Reliance Industries delivered strong earnings growth during the July-September 2026 quarter. The improvement was led by O2C, while Digital Services maintained double-digit EBITDA growth.
The key financial highlights from the Reliance Q2 FY27 Results are summarised below.
|
Key metric
|
Q2 FY27 performance
|
|
Gross revenue
|
₹3,62,268 crore, up 27.8% YoY
|
|
EBITDA
|
₹62,409 crore, up 23.9% YoY
|
|
EBITDA margin on gross revenue
|
17.2%, down 60 bps YoY
|
|
Profit before tax
|
₹38,613 crore, up 32.6% YoY
|
|
Consolidated PAT including associates/JVs
|
₹29,550 crore, up 33.8% YoY
|
|
PAT attributable to RIL shareholders
|
₹25,548 crore, up 40.6% YoY
|
|
Finance costs
|
₹8,481 crore, up 24.2% YoY
|
|
Depreciation
|
₹15,315 crore, up 6.2% YoY
|
|
Capital expenditure
|
₹38,153 crore
|
|
Net debt
|
₹1,17,140 crore, down 1.2% YoY
|
Source: Reliance Industries Q2 FY27 financial results and investor presentation. EBITDA margin is calculated using gross revenue.
The major developments during the quarter included:
-
Record O2C earnings: EBITDA increased 67.9% YoY to ₹25,203 crore, supported by stronger refining and petrochemical margins.
-
Jio's continued expansion: Digital Services segment EBITDA rose 17.7% to ₹22,223 crore.
-
Retail profitability pressure: Reliance Retail's EBITDA declined 10.2% to ₹6,120 crore despite revenue growth.
-
Higher shareholder earnings: PAT attributable to RIL shareholders increased 40.6% to ₹25,548 crore.
-
Improved leverage: Net debt declined to ₹1,17,140 crore from ₹1,22,914 crore in June 2026.
An important distinction in the Reliance Industries Q2 FY27 net profit figures is that ₹29,550 crore represents group PAT, including associates and joint ventures. The profit attributable specifically to RIL shareholders was ₹25,548 crore.
These two measures should not be used interchangeably when comparing earnings or calculating shareholder-related valuation ratios.
/content-assets/aef21e95fe6246bb83f88fe10e9d3731.png)
To assess how Reliance's record quarterly earnings and segment-wise performance relate to its market valuation, check the Reliance share price, historical charts and key valuation ratios.
The Reliance Industries Q2 FY27 Report showed that revenue, EBITDA and net profit all increased compared with the corresponding quarter of FY26.
However, the company's profitability varied across businesses. Higher O2C margins supported consolidated earnings, while Retail and Media faced operating margin pressure.
Revenue, EBITDA and PAT Comparison
The following tables compare the key financial indicators with Q1 FY27 and Q2 FY26.
Reliance Industries Q2 FY27 Financial Results
| Particulars |
Q2 FY27 |
| Gross revenue |
₹3,62,268 cr |
| Revenue from operations |
₹3,32,861 cr |
| EBITDA |
₹62,409 cr |
| EBITDA margin |
17.2% |
| Finance costs |
₹8,481 cr |
| Depreciation |
₹15,315 cr |
| Profit before tax |
₹38,613 cr |
| PAT including associates/JVs |
₹29,550 cr |
| PAT attributable to owners |
₹25,548 cr |
| Basic EPS |
₹18.88 |
Reliance Industries Comparative Financial Results
The following table presents the corresponding financial figures for Q1 FY27 and Q2 FY26.
| Particulars |
Q1 FY27 / Q2 FY26 |
| Gross revenue |
₹3,40,257 cr / ₹2,83,548 cr |
| Revenue from operations |
₹3,11,850 cr / ₹2,58,898 cr |
| EBITDA |
₹54,067 cr / ₹50,367 cr |
| EBITDA margin |
15.9% / 17.8% |
| Finance costs |
₹8,337 cr / ₹6,827 cr |
| Depreciation |
₹15,100 cr / ₹14,416 cr |
| Profit before tax |
₹30,630 cr / ₹29,124 cr |
| PAT including associates/JVs |
₹23,196 cr / ₹22,092 cr |
| PAT attributable to owners |
₹20,946 cr / ₹18,165 cr |
| Basic EPS |
₹15.48 / ₹13.42 |
Source: RIL consolidated unaudited financial statements and investor presentation, 30 October 2026. Comparative figures in the last column are Q1 FY27 followed by Q2 FY26. EPS is not annualised.
Revenue Growth: O2C Was the Main Contributor
Reliance Industries reported gross revenue of ₹3,62,268 crore in Q2 FY27, compared with ₹2,83,548 crore in Q2 FY26.
This represents an increase of ₹78,720 crore, or 27.8% YoY. Sequentially, gross revenue increased 6.5%.
The main factors supporting revenue growth were:
-
Higher fuel and petrochemical realisations in the O2C business.
-
Stronger transportation fuel crack spreads.
-
Growth in Jio's mobile and broadband subscriber base.
-
Higher connectivity monetisation and digital services revenue.
-
Expansion across Reliance Retail's consumption categories.
-
Increasing distribution and manufacturing scale in Reliance Consumer Products.
A distinction between gross revenue and statutory revenue is important.
Reliance's reported gross revenue includes ₹29,407 crore of GST recovered. After excluding this amount, consolidated revenue from operations stood at ₹3,32,861 crore, an increase of 28.6% YoY.
Investors comparing Reliance's revenue with other listed companies should use consistent accounting definitions.
EBITDA Growth and Margin Analysis
Reliance Industries' EBITDA increased from ₹50,367 crore in Q2 FY26 to ₹62,409 crore in Q2 FY27, representing growth of 23.9%.
The company generated ₹12,042 crore of additional EBITDA compared with the previous year.
The improvement was largely supported by higher refining and petrochemical profitability, along with earnings growth in Digital Services.
However, the consolidated EBITDA margin on gross revenue declined from 17.8% to 17.2%, a contraction of 60 basis points.
Sequentially, the margin improved from 15.9% in Q1 FY27.
This shows that although absolute operating earnings increased substantially, the year-on-year revenue mix and weaker margins in certain consumer businesses affected overall profitability.
Reliance Industries Q2 FY27 Net Profit Analysis
Reliance Industries reported consolidated PAT of ₹29,550 crore, up 33.8% YoY from ₹22,092 crore.
Profit before tax increased 32.6% to ₹38,613 crore, while standalone PAT rose 68.2% to ₹15,354 crore.
The improvement was supported by higher operating earnings, although several expenses increased.
|
Expense or profit metric
|
Q2 FY27 versus Q2 FY26
|
|
Finance costs
|
₹8,481 cr versus ₹6,827 cr
|
|
Depreciation
|
₹15,315 cr versus ₹14,416 cr
|
|
Tax expenses
|
₹9,363 cr versus ₹6,978 cr
|
|
PAT attributable to owners
|
₹25,548 cr versus ₹18,165 cr
|
|
Basic EPS
|
₹18.88 versus ₹13.42
|
Finance costs increased 24.2% YoY, while depreciation rose 6.2%.
Despite these higher expenses, PAT attributable to shareholders increased 40.6%, and basic EPS rose approximately 40.7%.
For equity investors, attributable PAT and EPS are particularly relevant because they reflect earnings belonging to Reliance Industries' shareholders after accounting for non-controlling interests.
Reliance's half-year performance provides additional context beyond the strong September quarter.
During the six months ended 30 September 2026, revenue and EBITDA increased, but statutory consolidated PAT remained almost unchanged because the previous year's results included a substantial investment-sale gain.
H1 FY27 Financial Performance
The following tables highlight Reliance Industries' financial performance during H1 FY27 and H1 FY26.
Reliance Industries H1 FY27 Financial Results
| Particulars |
H1 FY27 and YoY Change |
| Gross revenue |
₹7,02,525 cr (+26.2% YoY) |
| Revenue from operations |
₹6,44,711 cr (+27.0% YoY) |
| Company-reported EBITDA |
₹1,16,476 cr (+17.1% YoY) |
| Profit before tax |
₹69,243 cr (+20.7% YoY) |
| PAT including associates/JVs |
₹52,746 cr (+20.0% YoY) |
| PAT attributable to owners |
₹46,494 cr (+3.0% YoY) |
| Capital expenditure |
₹76,835 cr (+9.9% YoY) |
Reliance Industries H1 FY26 Financial Results
| Particulars |
H1 FY26 |
| Gross revenue |
₹5,56,800 cr |
| Revenue from operations |
₹5,07,558 cr |
| Company-reported EBITDA |
₹99,467 cr |
| Profit before tax |
₹57,346 cr |
| PAT including associates/JVs |
₹43,951 cr |
| PAT attributable to owners |
₹45,159 cr |
| Capital expenditure |
₹69,885 cr |
Source: Reliance Industries H1 FY27 financial disclosures. EBITDA follows the company's presentation basis.
Why Was H1 PAT Almost Flat Despite Strong EBITDA Growth?
Reliance's H1 FY27 consolidated PAT increased approximately 20.0% YoY to ₹52,746 crore, compared with ₹43,951 crore in H1 FY26.
The main reason was a high comparison base.
H1 FY26 included ₹8,924 crore of profit from the sale of listed investments, recognised under other income.
This gain increased the previous year's reported profit and affected the current year's statutory comparison.
Excluding such a non-recurring gain can provide a clearer picture of underlying earnings growth. However, adjusted comparisons should be distinguished from officially reported PAT.
The H1 results therefore indicate improving recurring operating profitability, particularly in O2C and Digital Services, even though statutory group PAT remained nearly flat.
Reliance's diversified business portfolio produced mixed operating results in Q2 FY27.
Oil-to-Chemicals and Digital Services delivered higher EBITDA, while Retail and Oil & Gas reported declines.
Segment EBITDA Comparison
The following tables highlight EBITDA performance across Reliance Industries' major business segments.
Reliance Industries Q2 FY27 Segment EBITDA
| Business Segment |
Q2 FY27 EBITDA and YoY Change |
| Oil-to-Chemicals |
₹25,203 cr (+67.9% YoY) |
| Digital Services |
₹22,223 cr (+17.7% YoY) |
| Retail |
₹6,120 cr (-10.2% YoY) |
| Oil & Gas Exploration |
₹4,901 cr (-2.0% YoY) |
| Other statutory segments |
₹2,777 cr (+0.2% YoY) |
Reliance Industries Q2 FY26 Segment EBITDA
| Business Segment |
Q2 FY26 EBITDA |
| Oil-to-Chemicals |
₹15,008 cr |
| Digital Services |
₹18,882 cr |
| Retail |
₹6,817 cr |
| Oil & Gas Exploration |
₹5,002 cr |
| Other statutory segments |
₹2,771 cr |
Source: RIL statutory consolidated segment disclosures. Statutory segment EBITDA totals ₹61,224 crore, compared with headline company-reported EBITDA of ₹62,409 crore, reflecting differences in reporting measures.
O2C contributed approximately 40% of headline consolidated EBITDA, while Digital Services contributed approximately 36%.
Together, these businesses accounted for more than three-quarters of reported group EBITDA.
This makes refining margins, petrochemical spreads, subscriber growth and Jio's revenue monetisation important drivers of Reliance's near-term earnings.
Reliance's Oil-to-Chemicals business was the largest contributor to earnings growth during Q2 FY27.
The segment reported record EBITDA of ₹25,203 crore, an increase of 67.9% YoY, supported by stronger global refining margins, higher product realisations and feedstock flexibility.
O2C Financial Performance
The following tables highlight the financial and operating performance of Reliance's O2C business during Q2 FY27 and the comparative periods.
Reliance O2C Q2 FY27 Financial Results
| Particulars |
Q2 FY27 |
| Revenue |
₹2,31,601 cr |
| EBITDA |
₹25,203 cr |
| EBITDA margin |
10.9% |
| Throughput |
20.6 MMT |
| Production meant for sale |
18.1 MMT |
Reliance O2C Comparative Financial Results
| Particulars |
Q1 FY27 / Q2 FY26 |
| Revenue |
₹2,01,803 cr / ₹1,60,558 cr |
| EBITDA |
₹17,010 cr / ₹15,008 cr |
| EBITDA margin |
8.4% / 9.3% |
| Throughput |
Q2 FY26: 20.8 MMT |
| Production meant for sale |
Q2 FY26: 18.1 MMT |
O2C revenue increased 44.2% YoY, while EBITDA grew 67.9%.
Sequentially, EBITDA increased 48.2% from ₹17,010 crore in Q1 FY27.
The EBITDA margin improved by 160 basis points YoY to 10.9%.
What Drove O2C Earnings Growth?
1. Stronger refining margins
Disruptions in global refinery output and fuel supply supported higher prices for transportation fuels.
Reliance reported fuel crack spreads approximately three to 3.7 times the comparable period.
Crack spreads measure the difference between refined product prices and crude oil costs. Higher spreads generally support refinery profitability, although actual margins also depend on sourcing costs, operating expenses and refinery configuration.
2. Flexible crude sourcing
Reliance adjusted crude procurement across the Americas, Mediterranean and Middle Eastern regions to manage supply disruptions and procurement premiums.
Its ability to process different crude grades and feedstocks supported margin optimisation.
Ethane-based cracking economics also remained favourable relative to naphtha-based cracking, benefiting parts of the petrochemical business.
3. Improved petrochemical margins
Reliance reported a 33% improvement in polyester chain margins.
Stronger paraxylene and purified terephthalic acid economics contributed to the improvement.
However, higher input costs and uneven downstream demand continued to affect certain petrochemical products.
4. Higher margins rather than volume expansion
O2C throughput declined slightly from 20.8 MMT to 20.6 MMT.
Production meant for sale remained unchanged at 18.1 MMT.
Therefore, record EBITDA was driven primarily by stronger pricing, product spreads and margin optimisation rather than a substantial increase in production volumes.
Factors That Limited O2C Profitability
Despite record earnings, the business faced several cost pressures:
- Higher crude procurement premiums.
- Increased freight and insurance expenses.
- Additional excise duties on selected transportation fuels.
- Under-recovery in domestic fuel retailing.
- Lower production of certain petrochemical products.
These factors partly offset the benefits of stronger global fuel margins.
O2C Outlook for Investors
Reliance indicated that H1 FY27 O2C performance was tracking an annualised EBITDA run-rate above ₹80,000 crore.
However, this is not a guaranteed full-year earnings figure.
The business benefited from unusually favourable refining conditions, and a normalisation of fuel crack spreads could reduce profitability.
Investors should monitor refining margins, crude sourcing premiums, freight costs, ethane economics and demand for polymers and polyester products.
Jio Platforms continued expanding its telecommunications and digital services businesses during Q2 FY27.
The company reported higher revenue, EBITDA and profitability, supported by subscriber additions, increased data consumption and improved average revenue per user (ARPU).
Jio Platforms Financial Performance
The following tables highlight Jio Platforms' financial performance during Q2 FY27 and Q2 FY26.
Jio Platforms Q2 FY27 Financial Results
| Particulars |
Q2 FY27 and YoY Change |
| Operating revenue |
₹40,475 cr (+11.4% YoY) |
| EBITDA |
₹21,879 cr (+16.6% YoY) |
| EBITDA margin |
54.1% (+250 bps YoY) |
| PAT |
₹8,387 cr (+13.7% YoY) |
Jio Platforms Q2 FY26 Financial Results
| Particulars |
Q2 FY26 |
| Operating revenue |
₹36,332 cr |
| EBITDA |
₹18,757 cr |
| EBITDA margin |
51.6% |
| PAT |
₹7,375 cr |
Source: Jio Platforms consolidated results. Jio Platforms EBITDA differs from RIL's broader Digital Services segment EBITDA of ₹22,223 crore.
Jio Subscriber Growth and Operating Metrics
Jio continued adding mobile and broadband customers while increasing average customer data consumption.
Jio Q2 FY27 Subscriber and Operating Metrics
| Operating Metric |
Q2 FY27 |
| Total subscribers |
542.4 million |
| Quarterly net additions |
9.1 million |
| Connectivity ARPU |
₹218.8/month |
| 5G subscribers |
300 million |
| Quarterly data traffic |
71.3 billion GB |
| Monthly data usage per customer |
44.2 GB |
| Fixed broadband connections |
30 million |
Jio Q2 FY26 Subscriber and Operating Metrics
| Operating Metric |
Q2 FY26 |
| Total subscribers |
506.4 million |
| Quarterly net additions |
8.3 million |
| Connectivity ARPU |
₹211.4/month |
| 5G subscribers |
Approximately 234 million |
| Quarterly data traffic |
58.4 billion GB |
| Monthly data usage per customer |
38.7 GB |
| Fixed broadband connections |
Approximately 22.7 million |
What Supported Jio's Growth?
Subscriber additions: Jio added 9.1 million net subscribers during the quarter, taking its total customer base to 542.4 million. This represents an increase of 36 million subscribers over the previous year.
Higher ARPU: Connectivity ARPU increased from ₹211.4 to ₹218.8 per month, indicating improved revenue monetisation per customer.
5G adoption: Jio's 5G subscriber base reached 300 million, an increase of approximately 66 million YoY.
Broadband expansion: Fixed broadband connections increased to 30 million, including approximately 15.1 million AirFiber connections.
Operating leverage: EBITDA grew faster than operating revenue, lifting the margin from 51.6% to 54.1%.
Jio also reported EBITDA less cash capital expenditure of ₹15,449 crore, compared with ₹10,129 crore in Q2 FY26.
This suggests improving cash generation after direct capital investment within Jio Platforms, although the measure is not equivalent to Reliance Industries' consolidated free cash flow.
What Should Investors Monitor in Jio?
Jio's future earnings growth will depend on how effectively it monetises its expanding subscriber base and digital infrastructure.
Important indicators include:
- ARPU growth beyond ₹218.8 per month.
- Net subscriber additions and customer retention.
- AirFiber and fixed broadband monetisation.
- Enterprise connectivity revenue.
- Returns on 5G investments.
- Profitability of newer digital and AI-enabled services.
The expansion of AI-related offerings could create additional revenue opportunities, but their financial contribution will need to be assessed through subsequent disclosures.
Reliance Retail reported revenue growth during Q2 FY27, but operating profitability declined.
The business continued investing in digital commerce, fulfilment infrastructure and distribution capabilities while facing higher costs and a shift in festive-season demand.
Reliance Retail Financial Performance
The following tables highlight Reliance Retail's financial performance during Q2 FY27 and Q2 FY26.
Reliance Retail Q2 FY27 Financial Results
| Particulars |
Q2 FY27 and YoY Change |
| Gross revenue |
₹91,716 cr (+6.4% YoY) |
| Net revenue |
₹80,220 cr (+5.8% YoY) |
| EBITDA before one-time charge |
₹6,228 cr (-8.6% YoY) |
| EBITDA margin before charge |
7.8% (-120 bps YoY) |
| EBITDA after one-time charge |
₹6,120 cr (-10.2% YoY) |
| PAT |
₹2,611 cr (-24.3% YoY) |
Reliance Retail Q2 FY26 Financial Results
| Particulars |
Q2 FY26 |
| Gross revenue |
₹86,169 cr |
| Net revenue |
₹75,836 cr |
| EBITDA before one-time charge |
₹6,816 cr |
| EBITDA margin before charge |
9.0% |
| EBITDA after one-time charge |
₹6,816 cr |
| PAT |
₹3,451 cr |
Source: Reliance Retail Q2 FY27 presentation. Prior-year figures are adjusted for the Consumer Brands demerger. Statutory unadjusted Q2 FY26 Retail gross revenue was ₹90,544 crore and should not be mixed with the adjusted comparison.
Why Did Reliance Retail's Profit Decline?
Reliance Retail's PAT declined 24.3% YoY to ₹2,611 crore despite higher revenue.
Four factors affected profitability.
1. Shift in festive demand
The timing of major festivals moved into Q3 FY27 compared with the previous year.
This affected discretionary spending patterns during Q2.
Management indicated that Q2 and Q3 should be evaluated together to assess the festive consumption cycle more accurately.
2. Higher digital commerce investments
Reliance expanded JioMart, hyperlocal delivery and fulfilment infrastructure.
These investments increased operating expenses before the full benefits of scale and delivery density could be realised.
3. Input-cost inflation
Higher sourcing, packaging, freight and other expenses affected margins.
Reliance did not pass on all cost increases to customers, which helped maintain competitive pricing but reduced profitability.
4. One-time impairment charge
Reliance Retail recognised a ₹108 crore impairment charge related to 7-Eleven.
Excluding this charge, EBITDA stood at ₹6,228 crore.
Even on this adjusted basis, EBITDA declined 8.6% YoY, indicating that margin pressure extended beyond the one-time expense.
Reliance Retail Operating Highlights
Despite lower earnings, Reliance Retail continued expanding its customer base and digital operations.
|
Operating indicator
|
Q2 FY27 performance
|
|
Registered customers
|
Over 400 million, approximately +10% YoY
|
|
Retail transactions
|
+7% YoY
|
|
New stores opened
|
303
|
|
Total stores
|
19,947
|
|
Retail space
|
77.5 million sq. ft.
|
|
Grocery B2C online revenue
|
+42% YoY
|
|
Grocery B2C online revenue share
|
+270 bps
|
|
Apparel and Footwear online share
|
+100 bps
|
|
B2B revenue
|
+10% YoY
|
Although 303 stores were opened, the total store count declined by 222 compared with Q1 FY27.
This reflected the closure of underperforming locations alongside new store additions.
Reliance Retail is prioritising digital commerce expansion and fulfilment capabilities, even as these investments affect near-term margins.
Management indicated that FY27 would focus on building digital scale, with FY28 and FY29 expected to deliver stronger conversion of that scale into value.
Investors should monitor contribution margins, delivery costs, inventory productivity, repeat purchases and operating cash flows.
The key question is whether online revenue growth can eventually translate into sustainable earnings growth.
Reliance Consumer Products Limited (RCPL) continued expanding its FMCG business across packaged foods, beverages, daily essentials and personal care.
The company reported strong revenue growth supported by wider distribution, brand expansion and investments in manufacturing capacity.
RCPL Financial and Business Highlights
|
Particulars
|
Reported performance
|
|
Q2 FY27 gross revenue
|
₹8,266 crore
|
|
Q2 revenue multiple
|
1.6 times Q2 FY26
|
|
H1 FY27 gross revenue
|
Approximately ₹16,900 crore
|
|
H1 revenue multiple
|
1.8 times H1 FY26
|
|
H1 Daily Essentials sales
|
Approximately ₹7,000 crore
|
|
H1 Beverage sales
|
More than ₹5,250 crore
|
RCPL reported growth across its Independence, Good Life and Campa portfolios.
The company also expanded internationally and initiated six integrated greenfield food and beverage manufacturing projects.
These investments are intended to support production capacity and distribution expansion.
However, rapid revenue growth does not automatically establish sustainable profitability.
Investors should assess whether RCPL can improve operating margins, achieve efficient capacity utilisation and generate adequate returns on manufacturing investments.
RCPL's revenue figures should also be evaluated separately from Reliance Retail because of the Consumer Brands restructuring. They should not simply be added to the group's consolidated revenue.
Reliance's Oil & Gas Exploration business reported slightly lower revenue and EBITDA during Q2 FY27.
Lower KG-D6 production and gas realisations affected performance, although improved coal-bed methane realisations provided some support.
Oil & Gas Financial Performance
The following tables highlight Reliance's Oil & Gas financial performance during Q2 FY27 and Q2 FY26.
Reliance Oil & Gas Q2 FY27 Financial Results
| Particulars |
Q2 FY27 and YoY Change |
| Revenue |
₹6,020 cr (-0.6% YoY) |
| EBITDA |
₹4,901 cr (-2.0% YoY) |
| EBITDA margin |
81.4% (-120 bps YoY) |
| KG-D6 gas realisation |
$8.88/MMBtu (-10.9% YoY) |
| CBM gas realisation |
$13.24/MMBtu (+38.9% YoY) |
Reliance Oil & Gas Q2 FY26 Financial Results
| Particulars |
Q2 FY26 |
| Revenue |
₹6,058 cr |
| EBITDA |
₹5,002 cr |
| EBITDA margin |
82.6% |
| KG-D6 gas realisation |
$9.97/MMBtu |
| CBM gas realisation |
$9.53/MMBtu |
Production and Operating Developments
Average production during the quarter included:
-
KG-D6 natural gas: 24.0 million standard cubic metres per day.
-
Coal-bed methane: 1.04 million standard cubic metres per day.
-
Oil and condensate: 15,903 barrels per day.
KG-D6 production declined approximately 9% YoY on the company's reported volume basis.
Higher CBM output and improved condensate realisations partly offset the decline.
Reliance continued well-intervention activities and CBM development to support future production.
The company also indicated that the KG-D6 gas ceiling price had been revised to $9.89/MMBtu for H2 FY27.
For investors, production stability, realised gas prices, CBM development and government levies remain important factors affecting this business.
JioStar, Reliance's media and entertainment business, reported higher revenue but lower EBITDA during the September quarter.
The results indicate that growth in digital consumption and audience engagement did not fully translate into higher operating profitability.
JioStar Financial Performance
The following tables compare JioStar's Q2 FY27 financial performance with Q2 FY26.
JioStar Q2 FY27 Financial Results
| Particulars |
Q2 FY27 and YoY Change |
| Operating revenue |
₹6,806 cr (+10% YoY) |
| EBITDA |
₹1,502 cr (-14% YoY) |
| EBITDA margin |
22.1% (-600 bps YoY) |
| Profit before tax |
₹1,139 cr (-14% YoY) |
JioStar Q2 FY26 Financial Results
| Particulars |
Q2 FY26 |
| Operating revenue |
₹6,179 cr |
| EBITDA |
₹1,738 cr |
| EBITDA margin |
28.1% |
| Profit before tax |
₹1,326 cr |
JioHotstar reported approximately 440 million monthly active users, representing 10% YoY growth.
Digital entertainment viewing time increased 15% YoY.
The business continued developing subscription, advertising and connected television opportunities across sports and entertainment.
However, EBITDA declined 14%, and the operating margin contracted by 600 basis points.
This indicates that higher revenue was accompanied by costs or business-mix effects that reduced profitability.
Investors should monitor digital advertising monetisation, subscription growth, content production expenses, sports rights economics and international expansion profitability.
JioStar's results are discussed separately for business analysis and should not be added again to Reliance's consolidated segment totals.
Reliance Industries reported higher operating profit before working capital changes during H1 FY27.
However, net cash generated from operating activities declined, indicating that a larger portion of operating earnings was absorbed by working capital requirements and tax payments.
H1 FY27 Cash Flow Performance
The following tables compare Reliance Industries' cash flow during H1 FY27 and H1 FY26.
Reliance Industries H1 FY27 Cash Flow
| Particulars |
H1 FY27 |
| Operating profit before working capital changes |
₹1,04,203 cr |
| Cash generated from operations before tax |
₹99,165 cr |
| Net operating cash flow |
₹93,055 cr |
| Cash expenditure on PPE, spectrum and intangibles |
₹52,813 cr |
| Net cash used in investing activities |
₹31,202 cr |
| Net cash used in financing activities |
₹26,107 cr |
Reliance Industries H1 FY26 Cash Flow
| Particulars |
H1 FY26 |
| Operating profit before working capital changes |
₹93,425 cr |
| Cash generated from operations before tax |
₹1,02,839 cr |
| Net operating cash flow |
₹99,110 cr |
| Cash expenditure on PPE, spectrum and intangibles |
₹58,074 cr |
| Net cash used in investing activities |
₹52,951 cr |
| Net cash used in financing activities |
₹41,161 cr |
Source: RIL consolidated cash-flow statement for the six months ended 30 September 2026. These are H1 figures, not Q2-only figures.
Why Did Operating Cash Flow Decline?
Net cash from operating activities declined approximately 6.1% YoY to ₹93,055 crore.
This occurred despite higher operating profit before working capital changes.
The major factors were:
-
Inventory increase: Cash outflow of ₹18,539 crore from inventory movements.
-
Receivables: Cash outflow of ₹5,538 crore associated with trade and other receivables.
-
Payables: A smaller positive working capital contribution compared with H1 FY26.
-
Tax payments: Net tax payments increased to ₹6,110 crore from ₹3,729 crore.
The difference between operating profit growth and operating cash flow highlights the importance of working capital management.
Cash Flow After Capital Expenditure
Reliance reported cash expenditure of ₹52,813 crore on property, plant, equipment, spectrum and intangible assets during H1 FY27.
Subtracting this amount from operating cash flow gives:
₹93,055 crore − ₹52,813 crore = ₹40,242 crore
This is a simplified operating cash flow less capital expenditure measure, not an officially reported free-cash-flow figure.
The result indicates that Reliance generated substantial cash after these capital payments, although other investing and financing requirements must also be considered.
Investors should monitor whether future earnings growth is accompanied by stronger operating cash flow and disciplined capital spending.
Reliance continued investing across energy, digital infrastructure, retail distribution and new energy projects during Q2 FY27.
Despite substantial capital expenditure, the company reported lower net debt compared with the previous quarter.
Reliance Industries Capital Expenditure
Capital expenditure remained elevated as the group continued its expansion programmes.
|
Period
|
Capital expenditure
|
|
Q2 FY27
|
₹38,153 crore
|
|
Q1 FY27
|
₹38,682 crore
|
|
H1 FY27
|
₹76,835 crore
|
|
H1 FY26
|
₹69,885 crore
|
H1 FY27 capital expenditure increased approximately 9.9% YoY.
The major investment areas included new energy manufacturing, O2C expansion and retail distribution infrastructure.
Management-reported capex differs from cash payments for capital assets in the statutory cash-flow statement. These measures should not be mixed when evaluating free cash flow.
Reliance Industries Net Debt Position
Reliance's gross debt increased sequentially, but higher cash and liquid resources supported a reduction in net debt.
Reliance Industries Debt Position: September 2026
| Particulars |
September 2026 |
| Gross debt |
₹3,84,952 cr |
| Company-defined cash and cash equivalents |
₹2,67,812 cr |
| Net debt |
₹1,17,140 cr |
| Net debt/annualised EBITDA |
0.47x |
Reliance Industries Debt Position: June 2026
| Particulars |
June 2026 |
| Gross debt |
₹3,69,705 cr |
| Company-defined cash and cash equivalents |
₹2,46,791 cr |
| Net debt |
₹1,22,914 cr |
| Net debt/annualised EBITDA |
0.57x |
Source: Reliance Industries Q2 FY27 disclosures. The company's liquidity measure for net debt is broader than statutory balance-sheet cash and cash equivalents.
What Does Reliance's Debt Position Indicate?
Gross debt increased by ₹15,247 crore compared with June 2026.
However, reported cash and liquid resources increased by a larger amount, resulting in a ₹5,774 crore reduction in net debt.
Net debt to annualised EBITDA improved from 0.57x to 0.47x.
This indicates that Reliance maintained substantial liquidity despite continuing its investment programmes.
Nevertheless, finance costs increased 24.2% YoY, making borrowing costs an important factor for future profitability.
During Q2 FY27, Reliance issued ₹12,000 crore of listed unsecured non-convertible debentures.
Separately, on 30 October 2026, the board approved an enabling resolution for issuing non-convertible debentures of up to ₹15,000 crore in one or more tranches.
The approval represents borrowing authorisation and should not be interpreted as the entire amount having already been raised.
The listing of Jio Platforms was an important corporate development following the September 2026 quarter.
Jio Platforms completed its IPO and listed on the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) on 28 October 2026.
The listing provides a separate market valuation for Reliance's digital services business.
|
Particulars
|
Details
|
|
Listing date
|
28 October 2026
|
|
IPO issue price
|
₹1,119 per share
|
|
Fresh shares issued
|
27 crore
|
|
Gross IPO proceeds after employee discount
|
Approximately ₹30,188 crore
|
|
Specified borrowing prepayments
|
Approximately ₹27,500 crore
|
|
Post-listing market capitalisation indicated by management
|
Approximately ₹13.1 lakh crore
|
How Does the Jio IPO Affect Reliance Shareholders?
1. Separate valuation of the digital business
Jio's listing establishes a directly observable market valuation for its telecommunications and digital operations.
This allows investors to assess Jio separately from Reliance's O2C, Retail, Oil & Gas and other businesses.
However, RIL's valuation must account for its ownership interest in Jio without double-counting subsidiary value.
2. Reduction in subsidiary borrowings
Reliance disclosed that approximately ₹27,500 crore of IPO proceeds had been used to prepay specified external commercial borrowings of Reliance Jio Infocomm.
This could improve financial flexibility and reduce future borrowing costs, depending on the debt replaced.
3. Post-quarter balance-sheet impact
The Jio IPO and related borrowing prepayments occurred in October 2026, after the 30 September quarter-end.
Therefore, these transactions should not be assumed to be reflected in Reliance's September-end net debt of ₹1,17,140 crore.
Their impact will need to be assessed in subsequent financial statements.
4. Changes in ownership economics
Because Jio issued fresh shares, additional public shareholders acquired ownership in the subsidiary.
RIL shareholders did not automatically receive Jio Platforms shares through the IPO.
Future analysis of Reliance's consolidated earnings should consider its effective ownership in Jio and the resulting non-controlling interests.
Reliance continued developing its new energy businesses during Q2 FY27, with investments across solar energy, battery technologies and clean-energy manufacturing infrastructure.
The company indicated that several projects were positioned for accelerated operationalisation in the coming quarters.
Management expects new energy projects to begin contributing to earnings from FY28.
Why New Energy Matters for Investors
New energy investments require substantial upfront capital expenditure.
Revenue and profitability generally depend on project commissioning, commercial production and capacity utilisation.
For Reliance, the important factors to monitor include:
- Commissioning timelines for new energy facilities.
- Manufacturing capacity utilisation.
- Product pricing and production economics.
- Customer commitments and demand visibility.
- Returns on invested capital.
- Additional funding and capital expenditure requirements.
The expected FY28 earnings contribution represents management's outlook rather than a guaranteed financial result.
Until these projects begin commercial operations and provide more detailed financial disclosures, their profitability and returns remain subject to execution uncertainty.
Reliance Industries shares were quoted at ₹1,164.90 on the NSE on 30 October 2026, down ₹2.50, or approximately 0.21%, from the previous close.
However, Reliance announced its Q2 FY27 financial results after market hours on Friday, 30 October 2026.
Therefore, the share-price movement during that trading session cannot be attributed to the announced results.
As of 31 October 2026, there had not been a subsequent regular trading session to assess the immediate market reaction.
Investors evaluating the response to Reliance Industries Q2 Earnings FY27 should monitor the next trading session's price movement, volumes and changes in market expectations for O2C earnings, Retail profitability and Jio's growth.
Despite record quarterly profitability, Reliance faces risks across its energy, consumer, digital and capital-intensive businesses.
The sustainability of earnings growth will depend on how these factors develop over the coming quarters.
|
Risk area
|
What investors should monitor
|
|
O2C profitability
|
Refining margins, fuel crack spreads and petrochemical demand
|
|
Retail
|
EBITDA margin recovery, digital commerce costs and competition
|
|
Borrowing costs
|
Finance expenses, debt levels and funding requirements
|
|
Oil & Gas
|
KG-D6 production, CBM output and gas realisations
|
|
Jio
|
ARPU, subscriber growth and broadband monetisation
|
|
Cash flow
|
Working capital requirements and operating cash conversion
|
|
New energy
|
Commissioning delays, project costs and returns
|
|
Media
|
Content costs, sports rights and advertising profitability
|
|
Geopolitical and regulatory exposure
|
Crude sourcing, freight, taxes and fuel pricing policies
|
1. O2C Earnings Normalisation
O2C EBITDA increased sharply because of favourable global fuel and petrochemical market conditions.
If refining margins or crack spreads normalise, future EBITDA could decline from the record Q2 level.
2. Reliance Retail Margin Pressure
Reliance Retail reported lower EBITDA and PAT despite higher revenue.
Continued digital commerce investments, competition and input-cost inflation could delay margin recovery.
3. Higher Finance Costs
Finance costs increased 24.2% YoY to ₹8,481 crore.
Further borrowing requirements and higher funding costs could affect earnings, particularly while the group continues substantial capital expenditure.
4. Natural Gas Production Decline
Lower KG-D6 production affected the Oil & Gas business.
Future profitability will depend on production stability, realised gas prices and the effectiveness of development activities.
5. Jio Monetisation and Competition
Jio's subscriber base continued expanding, but sustaining earnings growth will require stronger ARPU, broadband monetisation and cost discipline.
6. Operating Cash Flow Conversion
H1 FY27 operating cash flow declined despite stronger operating profit before working capital changes.
Further inventory or receivables increases could absorb additional cash.
7. New Energy Project Execution
Reliance's new energy investments involve commissioning, technology, cost and utilisation risks.
Delays or weaker-than-expected project economics could affect returns on capital.
JioStar's EBITDA declined despite revenue growth.
Content acquisition costs, sports rights economics and advertising monetisation remain important profitability drivers.
9. Geopolitical and Regulatory Exposure
Reliance's energy businesses are exposed to crude procurement conditions, international fuel markets, freight costs, taxation and government policies.
Changes in these factors could affect margins and earnings volatility.
The Reliance Industries Q2 Results 2027 showed strong operating performance, but the next few quarters will be important for assessing the sustainability of growth.
Investors should focus on the following indicators.
|
Area
|
Key indicator to track
|
|
O2C
|
Sustainability of ₹25,203 crore quarterly EBITDA
|
|
Refining
|
Crack spreads, crude premiums and freight costs
|
|
Jio mobile
|
ARPU growth beyond ₹218.8/month
|
|
Jio broadband
|
AirFiber additions and broadband profitability
|
|
Reliance Retail
|
Recovery in EBITDA margin and festive-season sales
|
|
JioMart
|
Delivery density, order values and fulfilment costs
|
|
Consumer Products
|
FMCG margins and manufacturing returns
|
|
Oil & Gas
|
KG-D6 production and gas realisations
|
|
Cash flow
|
Working capital and operating cash generation
|
|
Debt
|
Finance costs and net debt after Jio's IPO transactions
|
|
New energy
|
Project commissioning and FY28 earnings contribution
|
|
Shareholder earnings
|
PAT attributable to RIL owners and EPS
|
Three broader developments deserve particular attention.
First, the sustainability of O2C profitability will determine how much of the September quarter's earnings improvement can continue if global refining conditions change.
Second, Reliance's consumer businesses need to convert revenue and customer growth into stronger margins, particularly in Retail and digital commerce.
Third, cash flow and capital allocation will remain important as the group continues investing in new energy, infrastructure and digital businesses.
The combination of these factors will influence the quality and sustainability of Reliance's future earnings.
Reliance Industries delivered strong Q2 FY27 results, with gross revenue increasing 27.8%, EBITDA rising 23.9% and consolidated PAT growing 33.8% YoY.
The Oil-to-Chemicals business was the primary earnings driver, supported by favourable refining and petrochemical margins. Jio Platforms also delivered higher revenue, EBITDA and subscriber growth.
However, the performance was uneven across businesses. Reliance Retail faced margin pressure, JioStar reported lower EBITDA, and Oil & Gas production declined. Higher finance costs and weaker H1 operating cash flow also require attention.
The Jio Platforms listing and continued new energy investments add further considerations to Reliance's changing business structure and capital allocation.
For investors, the key factors will be the sustainability of O2C earnings, recovery in Retail profitability, monetisation of Jio's expanding customer base and the ability to generate strong cash flows while funding future growth.
Also read the Reliance Q1 FY27 Results Analysis to assess how the company's revenue growth and operating profitability evolved between Q1 and Q2 FY27, particularly across its major business segments.
Reliance Industries Q2 FY27 Results: FAQs
1. What was Reliance Industries' net profit in Q2 FY27?
Reliance Industries reported consolidated PAT of ₹29,550 crore in Q2 FY27, including the share of profit from associates and joint ventures, an increase of 33.8% YoY. Net profit attributable specifically to RIL shareholders was ₹25,548 crore, up 40.6% YoY.
2. What were Reliance Industries' revenue and EBITDA in Q2 FY27?
Reliance Industries reported gross revenue of ₹3,62,268 crore, up 27.8% YoY, and EBITDA of ₹62,409 crore, up 23.9% YoY. Statutory revenue from operations stood at ₹3,32,861 crore, while the EBITDA margin on gross revenue was 17.2%.
3. Which business contributed the most to Reliance's Q2 FY27 earnings growth?
The Oil-to-Chemicals business was the largest contributor to incremental EBITDA. O2C EBITDA increased 67.9% YoY to ₹25,203 crore, supported by stronger refining margins, higher fuel crack spreads and favourable petrochemical economics.
4. Why did Reliance Retail's profit decline in Q2 FY27?
Reliance Retail's PAT declined 24.3% YoY to ₹2,611 crore due to higher digital commerce investment costs, input-cost inflation, a shift in festive demand and a ₹108 crore one-time impairment charge. EBITDA declined 10.2% despite 6.4% growth in adjusted gross revenue.
5. What was Reliance Industries' net debt in Q2 FY27, and how did Jio's IPO affect it?
Reliance Industries reported net debt of ₹1,17,140 crore as of 30 September 2026, down from ₹1,22,914 crore in June 2026. Jio Platforms listed on 28 October 2026, and approximately ₹27,500 crore of IPO proceeds were used for specified borrowing prepayments. These post-quarter transactions were not included in the September-end debt position.