Reliance Industries reported record consolidated performance in Q2 FY27 as tight fuel markets and sourcing flexibility lifted oil-to-chemicals earnings, while digital services grew and retail profitability weakened during its online transition.
Management said consolidated EBITDA reached ₹62,409 crore, up 24% year on year, while profit after tax was close to ₹30,000 crore, up 34%. Revenue increased 28%.
O2C delivered the largest uplift
O2C EBITDA was ₹25,203 crore, about 69% higher. Management attributed the gain to strong downstream fuel cracks, alternative crude sourcing, an unusually wide ethane advantage and high asset utilisation despite higher freight, insurance and crude-premium costs.
The positive case is that operating flexibility allowed Reliance to benefit from dislocated energy markets. The risk is that part of the uplift depends on unusually tight global product balances and favourable spreads that can normalise.
Oil and gas EBITDA declined about 2%.
Jio grew; retail absorbed transition costs
Digital-services EBITDA was about ₹22,200 crore, up 18%. Management highlighted 300 million 5G customers and 30 million fixed-broadband connections, around half using fixed wireless access. It sees visibility for high-teen growth at Jio.
Retail revenue rose about 6%, but EBITDA fell roughly 10% to ₹6,120 crore. Profit after tax was ₹2,611 crore. Management said store cash generation is funding a more scalable digital-commerce platform, deliberately trading short-term earnings for online growth.
Online grocery B2C expanded 42%, but the benefits are expected mainly in FY2028 and FY2029. That timeline leaves execution, customer-acquisition economics and competitive intensity as material risks.
Guidance and capital allocation
Management said first-half O2C performance implied annualised EBITDA above ₹80,000 crore and remained constructive on structurally tight markets. It expects new energy to begin contributing earnings in FY2028.
Capex was described as broadly stable versus recent quarters. The transcript referenced a net-debt-to-EBITDA level of about 0.47 times, indicating balance-sheet capacity, though simultaneous investment across Jio, retail, O2C and new energy raises prioritisation and return-on-capital questions.
Board and investor questions
- How much of O2C’s record quarter is durable through a normal margin cycle?
- When will retail’s online investment stop diluting EBITDA?
- What milestones must new energy meet before its planned FY2028 contribution?
- Can high-teen Jio growth be sustained without a material increase in capital intensity?
Source: Reliance Industries Q2 FY27 management transcript, 30 October 2026. This analysis is based only on the company’s official transcript and is not investment advice.
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