Reliance Industries Limited (RIL) reported a significant milestone in its June quarter of FY26, with operational revenue exceeding ₹3 lakh crore for the first time, marking a 25% year-on-year increase. However, net profit attributable to the owners fell to ₹20,946 crore from ₹26,994 crore in the previous year, impacted by various factors including geopolitical tensions and volatile commodity markets.
The company's diverse business portfolio demonstrated resilience, with the oil-to-chemicals (O2C) segment remaining the largest contributor. Revenue in this segment rose by 30.4% to ₹2,01,803 crore, though margins were affected by the reintroduction of special additional excise duty (SAED) on diesel, petrol, and aviation turbine fuel. Domestic polymer demand also saw a decline due to supply disruptions linked to the Gulf crisis.
Reliance Retail Ventures experienced a 14.2% drop in net profit to ₹2,806 crore, while revenue from operations increased by 8.2% to ₹79,745 crore. The demerger of the FMCG business in December and the growing contribution of e-commerce, which increased fixed costs, impacted margins. The retail arm opened 252 new stores, expanding its total to 20,169 locations.
“Reliance has made a steady start to FY27, with all businesses delivering strong operating performance.”
Mukesh Ambani, Chairman and MD, RIL
Jio Platforms Ltd (JPL), housing RIL's telecom and digital businesses, posted a slight decline in net profit by 2.2% to ₹7,764 crore due to increased depreciation and finance costs from 5G asset capitalisation. However, revenue from operations grew by 11.8% to ₹39,173 crore, driven by subscriber additions and rising 5G adoption.
Despite the challenges, RIL's performance was described as extraordinary by CFO Srikanth Venkatachari, considering the macroeconomic volatility and supply chain disruptions. The earnings announcement followed a 2.6% rise in RIL's share price, closing at ₹1,326.50 on the BSE.
“This has been an extraordinary quarter when you look at it from point of view of macro volatility, energy market shock, supply chain dislocation that happened, and in that context, when you look at the overall performance, I do want to say that it's been an extraordinary performance too.”
Srikanth Venkatachari, CFO, RIL
Background
RIL's robust performance amid challenging conditions underscores the company's strategic resilience and adaptability. As Jio Platforms prepares for its anticipated listing on Indian stock exchanges, estimated between $135-180 billion, investors will be keenly watching its impact on India's digital growth trajectory.
As Jio Platforms gears up for its listing, the market will closely monitor its valuation and the broader implications for RIL's growth strategy in the digital sector.
