Mumbai: Reliance Industries Ltd (RIL), India’s most valuable company by market capitalisation, kicked off FY26 with a blockbuster performance in the April-June quarter. The company beat analysts’ expectations by posting its highest-ever quarterly profit, thanks to strong growth in its retail and telecom businesses, along with a one-time boost from divesting its stake in Asian Paints.
Despite facing continued pressure in the oil-to-chemicals (O2C) segment due to global crude price volatility, Reliance managed to hold steady margins and expand profitability.
Record Profit Backed by Asian Paints Divestment
RIL reported a consolidated net profit of ₹30,681 crore for the first quarter of FY26, marking a massive 76% year-on-year (YoY) growth. This figure includes a one-time gain of ₹8,924 crore from the sale of its stake in Asian Paints. Even without this gain, core business earnings came in stronger than market expectations.
The revenue for the quarter stood at ₹2.49 trillion, a 5% YoY rise and higher than the Bloomberg consensus estimate of ₹2.43 trillion. This performance marks a solid start to the fiscal year for the Mukesh Ambani-led conglomerate.
“Reliance has begun FY26 with a robust, all-round operational and financial performance,” said Mukesh Ambani, Chairman and Managing Director of Reliance Industries.
Oil-to-Chemicals (O2C) Business Steady Despite Global Challenges
Although global crude oil markets faced significant turbulence during the quarter, Reliance’s O2C segment held its ground by focusing on domestic demand and optimising product margins.
Revenue from the O2C business was down 2% YoY at ₹1.55 trillion.
However, EBITDA rose by over 10% to ₹14,511 crore.
EBITDA margin improved by 110 basis points, reaching 9.4%.
Reliance’s ability to extract value in a challenging energy market was bolstered by improved downstream margins and strategic offerings via the Jio-BP fuel retail network.
Retail Shines with Operational Discipline
Reliance Retail Ventures Ltd continued to expand smartly. The company closed underperforming stores and optimised its physical footprint, yet grew profitability:
Retail EBITDA surged 28% YoY to ₹3,271 crore.
Store count increased to 19,600.
Overall retail space reduced by 5% to 77.6 million sq.ft. to improve revenue per sq.ft.
“Our focus on operational excellence, geographical expansion and sharper product mix drove this strong performance,” said Isha Ambani, Executive Director, Reliance Retail.
Jio Grows Rapidly, Nears 500 Million Users
Reliance Jio, the telecom arm, had another impressive quarter:
Revenue rose 20% YoY to ₹35,032 crore.
Net profit grew nearly 25% to ₹7,110 crore.
ARPU (average revenue per user) improved by 15%.
Jio’s 5G and home broadband user base surpassed 200 million and 20 million, respectively.
“We’ve delivered a milestone quarter,” stated Akash Ambani, Chairman of Reliance Jio. “Our 5G expansion is progressing well, while monetisation is gaining traction.”
Analysts at Jefferies noted that with investments in 5G tapering off and tariffs improving, Jio is now positioned for strong cash flow generation in the coming quarters.
New Energy Business – Still in Build Mode
Reliance’s much-anticipated new energy business is progressing rapidly, though timelines remain undisclosed. As per the company’s investor presentation, the business aims to create a full green energy ecosystem from manufacturing solar panels to producing hydrogen, ammonia, and sustainable aviation fuel (SAF).
While updates were limited this quarter, experts expect more details to emerge during Reliance’s Annual General Meeting (AGM), an event that has historically been a platform for big announcements.
Market Performance
Ahead of the results, Reliance shares ended marginally lower at ₹0.02% on Friday. Despite that, the stock has gained over 20% year-to-date, outperforming both the Sensex and other blue-chip peers.