Reliance Industries Limited Q2 Profit Rises 41% to ₹25,548 Crore

Reliance Industries Limited reported consolidated net profit of ₹25,548 crore for Q2 FY27, a 41% increase from ₹18,165 crore a year earlier. Revenue from operations rose 29% to ₹333,000 crore, with oil-to-chemicals and digital services identified as major contributors to the September-quarter performance.

What did RIL report for Q2 FY27?

RIL reported consolidated profit after tax of ₹25,548 crore for the quarter ended September 30, 2026, compared with ₹18,165 crore in Q2 FY26. The result was also 22% higher than the ₹20,946 crore reported in the preceding June quarter, according to the detailed Q2 results information provided.

Revenue from operations was ₹333,000 crore, against ₹255,000 crore in the corresponding quarter a year earlier. This represented a 29% year-on-year increase. On a sequential basis, revenue rose 6.7% from ₹309,468 crore in Q1 FY27. The reported revenue was above the ₹313,700 crore consensus estimate cited before the announcement.

The supplied material includes pre-result forecasts as well as another headline summary with different financial figures. This report uses the detailed post-results figures that state net profit of ₹25,548 crore and revenue from operations of ₹333,000 crore. Forecasts should not be treated as reported financial results.

Which businesses supported RIL's quarterly earnings?

RIL's oil-to-chemicals, or O2C, business was identified as the largest contributor to earnings growth in the September quarter. O2C EBITDA rose 68% year on year to ₹25,203 crore from ₹15,008 crore, while segment revenue increased 44% to ₹231,000 crore from ₹160,000 crore.

The O2C performance was supported by higher crude oil prices, stronger transportation-fuel realisations and improved petrochemical margins, according to the results information. The business has a material influence on RIL's consolidated performance because it includes refining and petrochemical operations that are exposed to product prices, margins and crude-market movements.

Digital services also supported the quarterly result. The material attributes the performance to RIL's digital-services business, while the prior-quarter update showed Jio Platforms EBITDA rising 15.1% to ₹20,865 crore on subscriber additions and better monetisation. These figures provide context for the telecom business entering the September quarter, although they relate to Q1 FY27 rather than Q2.

How did margins and EBITDA move during the quarter?

RIL's consolidated EBITDA was reported to have increased 15% year on year from ₹54,067 crore in the September quarter. The consolidated EBITDA margin was 17.2%, down 60 basis points from 17.8% a year earlier but above 15.9% in the June quarter.

The year-on-year margin decline shows that revenue growth did not translate fully into a higher consolidated operating margin. However, the sequential improvement of 130 basis points indicates a stronger operating performance than in Q1 FY27, when the group faced lower profitability despite a 25% increase in revenue from operations.

Before the result, brokerages had expected a recovery in O2C profitability to be the principal driver of earnings. Their forecasts cited stronger refining margins, higher throughput and a weaker rupee as factors that could support the business, while retail and oil-and-gas performance remained areas investors were tracking.

Why is RIL considering non-convertible debentures?

RIL's board was scheduled to consider fundraising through listed, secured or unsecured, redeemable non-convertible debentures, or NCDs, on a private-placement basis in one or more tranches. The company had not disclosed the proposed amount, coupon, maturity or other terms in the information provided.

NCDs are debt instruments, and the board's consideration of a proposal does not by itself confirm an issuance. Investors will need to wait for any board decision and subsequent company disclosures to assess the size, timing and purpose of a potential borrowing programme.

The fundraising proposal comes alongside continued capital expenditure across RIL's businesses. The material states that the company spent ₹38,153 crore on capital expenditure during the quarter, funding O2C and new-energy projects as well as consumer-business infrastructure and distribution networks.

What does the Q2 performance mean for investors and operations?

The Q2 numbers show that RIL's earnings increased faster than revenue, led by the recovery in the O2C segment. The 41% rise in net profit and 68% increase in O2C EBITDA place refining, fuels and petrochemicals at the centre of the reported improvement, even as Jio and retail remain important parts of the group's consumer-facing operations.

For investors, the figures also underline the need to track segment-level profitability rather than revenue alone. The consolidated EBITDA margin remained below its year-earlier level, and O2C earnings can be affected by crude prices, fuel realisations, refining margins and petrochemical demand. The proposed NCD consideration adds a financing item to monitor alongside capital expenditure.

For customers and industry participants, RIL's ongoing investment in consumer distribution, digital infrastructure, new energy and O2C projects points to continued operational expansion. The company has not provided, in the supplied information, a quantified full-year earnings target or detailed NCD terms.

Conclusion

RIL's September-quarter performance was marked by consolidated net profit of ₹25,548 crore, up 41% year on year, and revenue from operations of ₹333,000 crore, up 29%. O2C was the key earnings driver, while improved sequential EBITDA margin indicated a better operating outcome than in the June quarter.

The next disclosures to watch are the board's decision on the proposed NCD fundraising, including its amount and terms, and management's discussion of segment performance at the analyst meeting following the results. Updates on capital expenditure and the profitability of O2C, digital services and retail will remain relevant to the group's FY27 performance.