Reliance Industries Limited: A Q2 FY26 Power Play Across Diverse Sectors

Reliance Industries Limited (RIL) has once again demonstrated its formidable market presence, reporting a robust performance for Q2 FY26. The conglomerate, a titan in India's industrial landscape, showcased impressive double-digit growth across its key financial metrics, underscoring its strategic resilience and operational excellence. Consolidated revenue surged by 10.0% year-on-year to ₹283,548 crore, while EBITDA witnessed a significant 14.6% increase to ₹50,367 crore. Profit After Tax (PAT) also climbed by 14.3% to ₹22,092 crore, reflecting a strong quarter driven by new initiatives and buoyant economic activity.

The growth narrative was broadly distributed across RIL's diverse business segments. Digital Services, primarily driven by Jio Platforms, continued its stellar run, contributing significantly to the top line and profitability. Retail, with its expanding footprint and innovative commerce models, also posted strong numbers. The Oil to Chemicals (O2C) business saw improved performance, benefiting from favorable market conditions and operational efficiencies. Even the nascent New Energy segment showed rapid progress, laying the groundwork for future growth.

Digital Dominance and Retail Resilience

Jio Platforms, RIL's digital arm, remains a powerhouse, solidifying its leadership in connectivity and home solutions. The segment reported an 18% YoY EBITDA growth, driven by a growing subscriber base that now exceeds 500 million, including 234 million 5G users. The expansion of fixed broadband connections, particularly JioAirFiber, which now serves 9.5 million homes, highlights the company's success in driving home digitization. Management emphasized its indigenous technology stack, enabling end-to-end control over the value chain and fostering rapid innovation at scale. The launch of JioPC AI Assistant and JioFrames further underscores its ambition to integrate AI into everyday digital experiences.

Reliance Retail also delivered a robust performance, with gross revenue growing 18% YoY to ₹90,018 crore. This growth was broad-based, with Grocery, Fashion & Lifestyle, and Consumer Electronics segments all reporting strong double-digit increases. The Quick Hyper-Local Commerce platform, JioMart, witnessed exceptional growth, with daily orders increasing by over 200% YoY. Strategic partnerships with premium brands like Stella McCartney and Max & Co., along with the exclusive launch of Fenty Beauty in India, are enhancing its market position. The company's focus on expanding its store footprint and leveraging its omnichannel presence continues to drive consumption across diverse baskets.

Energy Transition and AI Ambitions

The Oil to Chemicals (O2C) business saw its EBITDA grow by 21% YoY, primarily due to a sharp recovery in fuel cracks and improved domestic placement through Jio-bp. The segment maximized crude throughput and optimized aromatics production, benefiting from advantageous ethane cracking economics. Despite a natural decline in KG D6 volume, the Exploration and Production (E&P) segment maintained stable EBITDA, partly offset by improved gas price realization. The company is actively working on augmenting production from KG-D6 fields and increasing CBM production.

Reliance's commitment to New Energy is rapidly taking shape. The company is on track to establish 20 GWp of solar PV manufacturing capacity and a 100 GWh battery giga-factory. Four PV module lines have been commissioned, and the first cell line is expected to be operational in October 2025. This ambitious project in Kutch aims to create a world-leading, end-to-end integrated green energy ecosystem. In Artificial Intelligence, Reliance Intelligence, a 100% subsidiary, is developing AI capabilities and infrastructure, including GW-scale data centers powered by green energy. A joint venture with Meta to develop AI solutions on open-source Llama models highlights RIL's intent to be a leader in India's AI revolution.

Strategic Clarity and Future Outlook

Reliance Industries Limited's Q2 FY26 performance underscores its strategic clarity and disciplined execution across its diversified portfolio. The company's strong balance sheet and robust cash flow generation provide ample financing capacities for its ambitious growth initiatives, particularly in New Energy and AI. Management's focus on domestic market opportunities, customer-centric innovations, and timely project execution positions RIL favorably for sustained growth. The ongoing de-merger process for the financial services arm, Jio Financial Services, is also progressing, poised to unlock further value. RIL continues to demonstrate its ability to adapt to market realities while aggressively pursuing its long-term vision of transforming India's digital and energy landscapes.