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Reliance Industries Ltd reported a 41% year-on-year jump in net profit to Rs 25,548 crore in Q2 FY27, driven by strong performance in oil-to-chemicals and digital services.
Reliance Industries Ltd (RIL) posted a 41% YoY rise in consolidated net profit to Rs 25,548 crore for the September quarter of FY27, compared to Rs 18,165 crore a year earlier. Revenue from operations grew 29% to Rs 3.32 lakh crore, according to ET Markets. The company’s board approved issuing up to Rs 15,000 crore in non-convertible debentures. Jio Platforms, RIL’s digital arm, saw a 14% YoY increase in profit after tax to Rs 8,387 crore, with revenue up 11.4% to Rs 40,475 crore. The O2C business recorded a 68% YoY surge in EBITDA to Rs 25,203 crore, though consolidated EBITDA margins contracted by 60 basis points to 17.2%. RIL’s net debt-to-annualised EBITDA ratio improved to 0.47x from 0.57x in the prior quarter. Capital spending of Rs 38,153 crore was allocated to O2C, new energy projects, and consumer businesses.
The results underscore RIL’s diversified growth, with O2C and digital services leading gains. However, EBITDA margin contraction and reliance on volatile crude oil prices pose risks. Jio’s 91 lakh new subscribers and 5G expansion to 30 crore users highlight opportunities, while O2C’s exposure to crude prices remains a concern. The oil and gas segment saw a 2% YoY EBITDA decline due to lower production and gas price realisations. Higher freight costs and crude premiums partially offset revenue gains in the O2C segment.
Stakeholders including investors, Jio Platforms, and energy sector competitors benefit from the results. Customers of Reliance Retail and Jio Platforms, as well as O2C suppliers, are indirectly impacted. The board’s approval for Rs 15,000 crore debentures reflects confidence in RIL’s financial position. Continued focus on new energy projects and consumer expansion will shape future growth. The EBITDA margin contraction to 17.2% from 17.8% YoY remains a key risk despite higher EBITDA.
The results highlight RIL’s resilience amid market volatility, but commodity price exposure and margin pressures could affect future performance. Jio’s international expansion and O2C’s reliance on crude oil prices will require careful management. The company’s ability to sustain growth while balancing financial metrics will determine long-term success.
The board will approve the issuance of up to Rs 15,000 crore in non-convertible debentures. Jio Platforms will release its first quarterly earnings report post-October 28 stock market listing. RIL will continue investing in O2C, new energy projects, and consumer businesses.
Reliance Industries’ Q2 results show strong profitability but highlight risks from margin contraction and commodity volatility.
Topics: RelianceIndustries, JioPlatforms, IndianMarkets, EnergySector, DigitalServices, EBITDAAnalysis, FinancialPerformance, CrudeOilPrices, NewEnergyProjects, RetailSector
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Source: ET Markets
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