Reliance Q2 Results: Profit Jumps 41% to ₹25,548 Crore; Retail Lags

Reliance Q2 results released on Friday showed net profit attributable to shareholders growing 40.6% from a year earlier to ₹25,548 crore. Reliance Industries’ fuel business and Jio helped counterbalance a weaker performance in retail. Net profit stood at ₹18,165 crore in the same period last year.

Revenue from operations at Reliance Industries Ltd (RIL) increased 28.6% to ₹3,32,861 crore from ₹2,58,898 crore in the previous year. Consolidated profit after tax, which includes the share of minority interests, was ₹29,250 crore. That is an increase of 32% over last year’s ₹22,146 crore, as per Business Standard.

Consolidated EBITDA was at an all-time high of ₹56,616 crore. The EBITDA margin rose to 17.1% from 15.4% in the June quarter, when RIL net profit was ₹20,946 crore. Net profit therefore rose about 22% on a quarter-on-quarter basis.

O2C business drives Reliance Q2 results

The oil-to-chemicals (O2C) division was the major contributor, with Reliance’s O2C EBITDA rising 68% from ₹15,008 crore to ₹25,203 crore. Revenue for the segment increased 44% from ₹1.61 lakh crore to ₹2.32 lakh crore, Business Standard reported.

Fuel cracks increased between three and 3.7 times year-on-year, and the company said they reached historic highs during the quarter. Crude prices were around 40% higher than a year ago, and shipping costs increased 15 to 20 times.

Chairman and Managing Director Mukesh Ambani said the O2C business delivered a strong performance “led by tight fuel markets”. The company also highlighted expenses linked to the Special Additional Excise Duty and under-recoveries at its Jio-bp fuel retail business. Oil and gas exploration revenue declined 0.6% to ₹6,020 crore.

Jio grows, Reliance Retail Q2 profit slides

Jio Platforms recorded consolidated revenue of ₹47,485 crore, up 11.3% year-on-year, according to Business Today. Its EBITDA was ₹21,879 crore, an increase of 16.6%. Jio ARPU (average revenue per user) increased to ₹218.8 per month, and the company had 542.4 million subscribers, including around 300 million 5G users.

The results came in the same week that Jio Platforms listed on the stock exchanges at a 21.36% premium. Mukesh Ambani called the listing “a historic moment in Reliance’s value creation journey”.

The retail segment disappointed. Net profit for Reliance Retail dropped 24.5% to ₹2,619 crore from ₹3,469 crore in the previous year, while revenue from operations grew 5.8% to ₹80,220 crore. EBITDA before a one-time impairment charge of ₹108 crore came down 8.6% to ₹6,228 crore, and the margin contracted by 120 basis points to 7.8%.

The retailer ended September with 19,947 stores, a net reduction of 222 after it closed unproductive outlets. JioMart revenue grew 42%. Isha Ambani, Executive Director of Reliance Retail Ventures, said the new model “is working and funded by the profits of offline business”.

Why the Reliance Q2 results matter for investors

For investors, this quarter shows that Reliance still depends heavily on its refining and petrochemicals business. Since fuel cracks can rise sharply, they can lift the company’s earnings quickly. But they can also fall just as quickly.

What does this mean for consumer companies? A lower store count and shrinking margins suggest Reliance is trading near-term profits for growth in quick commerce and online channels, a shift other organised retail players will watch closely.

With Jio now listed, it will disclose its results separately and be valued as its own listed entity. That gives shareholders a better idea of each of Reliance’s businesses and puts more focus on its retail and energy divisions.

Investors will also want to see whether Reliance can maintain its fuel margins through the December quarter and how fast the retail division can return to profit growth. They will track progress on its new energy initiatives as well. How the share price reacts when markets open on Monday will be the first test. Full results are available on the company’s investor relations page, and more coverage is on our business news page.