Business & Finance

Reliance Shares Rise 8% as Q2 Earnings Driven by Oil‑to‑Chemicals Margins and Jio Growth

By Rahul Asati

Reliance Industries shares climbed about 8% after the company announced its Q2 FY27 results. Consolidated revenue rose 27.8% to ₹3,62,268 crore, while profit after tax, including associates and joint ventures, increased 33.8% to ₹29,550 crore. EBITDA grew by ₹12,042 crore, largely due to the oil‑to‑chemicals (O2C) business, which reported EBITDA of ₹25,203 crore – a 67.9% jump from the same quarter a year earlier. O2C contributed roughly 85% of the rise in consolidated EBITDA.

The O2C throughput fell slightly to 20.6 million tonnes from 20.8 million tonnes, and production for sale remained unchanged at 18.1 million tonnes. The larger earnings came from a higher EBITDA margin of 10.9%, up from 9.3% a year earlier, driven by favorable fuel price dynamics and a better crude‑oil‑to‑fuel cost spread.

Jio Platforms posted operating revenue of ₹40,475 crore, up 11.4%, and EBITDA of ₹21,879 crore, up 16.6%. Profit after tax rose 13.7% to ₹8,387 crore. Growth was supported by an increase in the customer base to 542.4 million and an average revenue per user (ARPU) of ₹218.8, up from ₹211.4.

Reliance Retail saw gross revenue rise 6.4% to ₹91,716 crore, but profit after tax fell 24.3% to ₹2,611 crore. Management cited a shift of festive shopping to the next quarter, investment in online commerce, higher input costs, and a ₹108 crore one‑time impairment related to 7‑Eleven. EBITDA before the impairment still declined 8.6%.

Net debt decreased to ₹1,17,140 crore from ₹1,22,914 crore in the prior quarter, despite capital expenditure of ₹38,153 crore. Finance costs rose 24.2% year‑on‑year.

The results explain the positive market reaction: strong O2C earnings, steady Jio growth, and a lower net debt balance. However, the durability of the quarter will depend on maintaining fuel margins, sustaining Jio’s growth, and improving retail profitability.