Reliance Q3 Results FY26: Revenue Jumps 11% as Profit Stays Flat

RIL Reports Stable Q3 Earnings Amidst Strong Revenue Growth

Reliance Industries Ltd (RIL) announced its financial results for the third quarter of fiscal year 2026 on January 16, showcasing a resilient operational performance despite a nearly flat profit growth. The conglomerate reported a marginal 0.56% year-on-year increase in its consolidated net profit, which stood at ₹18,645 crore. In contrast, revenue from operations saw a robust 11% jump to ₹2.69 lakh crore for the quarter ended December 31, 2025, reflecting steady momentum across its diversified business segments.

On a sequential basis, the company's profit grew by approximately 3% from the ₹18,165 crore reported in the September quarter, while revenues increased by 4%. The earnings before interest, tax, depreciation, and amortisation (EBITDA) for the quarter reached ₹50,932 crore, marking a 6% year-on-year rise, primarily supported by strong performances in the Jio and oil-to-chemicals (O2C) divisions.

Oil-to-Chemicals Business Leads Performance

The core oil-to-chemicals (O2C) business was a significant contributor to the quarter's performance. The segment's revenue increased by 8% to ₹1.69 lakh crore. More notably, its EBITDA surged by 15% year-on-year to ₹16,507 crore. This growth was largely driven by a sharp increase in transportation fuel cracks and higher sulphur realisations. The company noted that these gains helped offset weaknesses in downstream chemical margins and increased feedstock freight costs. Favourable ethane cracking economics and strong domestic market placements also supported the segment's profitability.

Highlighting the operational strength, Chairman and Managing Director Mukesh D. Ambani stated, "The robust growth in O2C business was led by significantly higher fuel margins with favourable demand-supply dynamics, along with operational flexibility." The company's fuel retailing arm, Jio-bp, continued its expansion, increasing its network by 14% year-on-year to 2,125 outlets.

Jio's Sustained Digital Momentum

The digital services segment, spearheaded by Reliance Jio Infocomm, continued its steady growth trajectory. The telecom major's subscriber base crossed the significant milestone of 500 million users. A key operational metric, the average revenue per user (ARPU), saw a sequential increase, rising to ₹213.7 from ₹211.4. This consistent growth in both user base and ARPU underscores the strength of Jio's market position.

In a strategic development, Jio signed a Memorandum of Understanding (MoU) with the National Highways Authority of India (NHAI) to deploy a telecom-based safety alert system. This initiative will leverage Jio's 4G and 5G infrastructure to provide real-time warnings to travellers about accident-prone zones and other hazards. Akash M. Ambani, Chairman of Reliance Jio, commented on the broader vision, stating that Jio's extensive subscriber base and network will empower Reliance's AI initiatives to make India "AI-empowered."

Retail Arm Delivers Steady Performance

Reliance Retail Ventures Ltd (RRVL) delivered a consistent performance during the quarter. Isha M. Ambani, Executive Director of RRVL, noted that the business served millions of customers by focusing on trend-focused assortments and seamless omni-channel experiences. This strategy continues to foster strong customer engagement and loyalty in a dynamic consumer landscape.

Key Financial Metrics for Q3 FY26

Rising Costs and Capital Expenditure

The company's bottom line was impacted by rising expenses. Depreciation for the quarter increased by 11% year-on-year to ₹14,622 crore, while finance costs rose by 7% to ₹6,613 crore. These increases were largely attributed to the operationalisation of 5G spectrum assets. Capital expenditure for the quarter stood at ₹33,826 crore, directed towards ongoing projects in the O2C and new energy businesses, as well as the continued expansion of the Jio and Retail networks.

Management's Vision for a New Growth Phase

Mukesh Ambani expressed confidence in the company's future, stating, "Reliance is entering a new phase of value creation with its initiatives in the AI and New Energy domains." He emphasized that these technologies would provide sustainable solutions at scale for India and the world, positioning Reliance to play a pioneering role in their evolution. This forward-looking statement aligns with the company's significant investments in building a deep-tech powerhouse, including gigawatt-scale, AI-ready data centers.

Conclusion

Reliance Industries' third-quarter results reflect a tale of operational strength and strategic investment. While net profit growth was marginal, the double-digit revenue increase, driven by the O2C and digital services segments, demonstrates the resilience of its diversified business model. The company's continued capital expenditure and strategic focus on next-generation growth engines like AI and new energy signal a clear path towards long-term value creation, even as it navigates current market dynamics.