Reliance Industries Q4 FY26: Profit Down 13%, Revenue Up 13%

What stood out in Reliance’s March-quarter print

Reliance Industries (RIL) reported a softer March-quarter earnings outcome on profitability, even as the company posted strong top-line growth and flagged a challenging global operating environment. The company’s Q4 FY26 consolidated net profit fell 13% year-on-year (YoY) to ₹16,971 crore, compared with ₹19,407 crore in Q4 FY25. Profit also declined 8.97% sequentially from ₹18,645 crore in Q3 FY26. Revenue from operations rose 13% YoY to ₹2,94,000 crore in Q4 FY26 from ₹2,61,000 crore a year ago, pointing to resilience in scale despite margin headwinds.

Stock reaction ahead of results and the near-term setup

The stock moved lower ahead of the earnings announcement. Shares ended at ₹1,327.65, down ₹15.45 or 1.15% on the BSE versus the previous close of ₹1,343.10. Separate intraday updates indicated the stock had been under pressure amid broader market selling, with a reported dip of about 1.2% ahead of the numbers. The company’s market capitalisation was cited around ₹18,13,360.19 crore in the same period.

O2C remains the pressure point despite higher revenue

Multiple updates around the results highlighted that the oil-to-chemicals (O2C) business faced a tough quarter, with costs and volatility limiting the benefit of better refining cracks. RIL’s O2C revenue rose 14% quarter-on-quarter (QoQ) to ₹1,84,933 crore in Q4 FY26 from ₹1,62,096 crore in Q3 FY26. But O2C EBITDA fell 12% QoQ to ₹14,520 crore from ₹16,507 crore, signalling margin compression.

Brokerage previews and sector commentary pointed to disruptions and higher cost lines, including freight and insurance expenses linked to disruptions around the Strait of Hormuz, elevated gas costs from lower captive availability, and weak petrochemical spreads. Several reports also referenced marketing margin pressure and the economics of fuel retailing during the quarter, with uncertainty in physical commodity markets as a recurring theme.

Management’s view: geopolitics, energy prices, and trade patterns

Chairman and Managing Director Mukesh D. Ambani linked FY25-26 performance to global volatility. He said: “Through fiscal FY2025-26 we faced geopolitical disruptions, volatile energy prices and shifting global trade patterns. These headwinds weighed on businesses across the world. India held its economic growth course through all this, as did Reliance. The breadth of our portfolio and strong domestic orientation helped navigate volatility in the external environment.”

Consumer businesses as stabilisers: telecom and retail in focus

While the energy complex drove most near-term debate, the market continued to look to telecom and retail for stability. Jio Platforms Ltd reported Q4 profit of ₹7,022 crore, up 26%, and full-year profit of ₹26,120 crore, up 22%, as per the figures cited. Reliance Retail Venture Ltd (RRVL) reported Q4 profit after tax of ₹3,563 crore, up 0.5%, while gross revenue rose 10.84% to ₹98,232 crore.

Analyst previews going into the results had generally expected telecom to remain steady and retail to show moderate growth, offsetting weaker O2C and upstream performance. ARPU and subscriber trends were also tracked by the Street in previews, including an ARPU estimate of ₹216 versus ₹214, though those were expectations rather than reported numbers in the provided updates.

Full-year headline: FY26 revenue at an all-time high

Beyond the quarter, one update said Reliance’s FY26 revenue stood at an all-time high of ₹11,75,919 crore, with EBITDA up 13.4% (no absolute EBITDA figure was provided in that specific line). For investors, the combination of record full-year revenue and a weaker Q4 profit print frames a familiar Reliance question: how quickly energy earnings normalise, and how consistently consumer segments compound.

Brokerages: target cuts, but ‘Buy’ calls largely intact

Commentary around the results and earlier quarters suggested target prices and earnings estimates were being revised due to near-term O2C volatility, even as valuations after the correction helped retain positive ratings. One preview noted that, among 34 analysts tracked, all but one had a ‘Buy’ rating and one suggested ‘Sell’. The average 12-month price target was cited at ₹1,736, implying about 29% upside from prevailing levels at the time of that estimate.

Separately, JM Financial maintained a ‘Buy’ rating with a target price of ₹1,730, noting concerns around near-term retail EBITDA growth linked to quick commerce ramp-up were already reflected in the share price. Emkay Global was cited as maintaining ‘Buy’ with an unchanged target of ₹1,680 while trimming EPS estimates for FY26 to FY28 by 3%.

Key numbers at a glance

Market impact: what investors are likely to track next

The immediate market focus is on whether the margin pressure visible in O2C EBITDA persists, especially with cost variables like freight, insurance, and input gas economics highlighted across previews. Investors are also watching whether consumer businesses can keep absorbing volatility from the energy cycle, given the scale of telecom and retail profits disclosed. The dividend of ₹6 per share is a tangible shareholder payout data point, but it does not change the core debate around earnings mix.

Ownership and positioning also featured in market narratives, including a cited decline in FII holding to 18.67% in March 2026 from a peak of 28.3% in March 2021. Separately, reports noted the stock’s recent underperformance, including declines over the past 30 days, six months, and year-to-date in 2026, which has made valuation a bigger part of the ‘Buy’ thesis in broker notes.

Why this quarter matters

RIL’s Q4 FY26 numbers reinforce the split in the conglomerate’s earnings drivers. The quarter delivered strong revenue growth, but profitability remained sensitive to O2C spreads and cost shocks that came with geopolitical disruptions and shifting trade flows. At the same time, disclosures from Jio Platforms and Reliance Retail show that the consumer-facing segments continue to contribute meaningful profits and can provide ballast when energy earnings soften.

The broader takeaway is that Reliance’s consolidated story is still being priced on the trajectory of O2C margins and the durability of consumer growth. In the near term, the Street is likely to weigh management commentary on the operating environment alongside the segment trend implied by O2C’s higher revenue but lower EBITDA.

Conclusion

Reliance Industries closed lower ahead of its Q4 FY26 results, and the reported numbers justify why the market remained cautious: profit declined 13% YoY even as revenue rose 13%. With O2C EBITDA down 12% QoQ, investors now have clearer evidence of margin pressure amid a volatile external environment. The next set of market reactions will likely hinge on how quickly energy profitability stabilises and on updates tied to the company’s stated roadmap and segment performance in upcoming quarters.