Reliance Q1 results: Jio, Retail drive growth, O2C sees margin improvement; here are 6 key takeaways
Reliance Q1 results: Mukesh Ambani-owned oil-to-telecom-to-retail behemoth Reliance Industries (RIL) on Friday, July 18, posted a solid 76 per cent year-on-year (YoY) surge in consolidated profit after tax (PAT) for the June quarter (Q1FY26), beating Street estimates.
RIL’s consolidated PAT for Q1FY26 stood at ₹30,681 crore, up 75.84 per cent against ₹17,448 crore in the same quarter last year. Gross revenue climbed 6 per cent YoY to ₹2,73,252 crore from ₹2,57,823 crore in Q1FY25.
According to a Bloomberg analyst consensus, RIL was expected to report consolidated revenue of ₹2.42 lakh crore and net profit was estimated at ₹20,059 crore.
Consolidated EBITDA increased by 35.7 per cent YoY to ₹58,024 crore from ₹42,748 crore, while EBITDA margin jumped by 460 bps YoY to 21.2 per cent in Q1FY26 from 16.6 per cent in Q1FY25.
The company said it has recorded the highest-ever consolidated quarterly EBITDA and net profit in Q1FY26.
“Reliance has begun FY26 with a robust, all-round operational and financial performance. Consolidated EBITDA for 1Q FY26 improved strongly from a year-ago period, despite significant volatility in global macros,” said Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries.
Reliance said, excluding proceeds of profit from the sale of listed investments, EBITDA increased by 15 per cent and PAT rose 25 per cent YoY.
The conglomerate’s net debt increased to ₹1,17,581 crore from ₹1,12,341 crore YoY and ₹1,17,083 crore QoQ.
Offering an update on the “New Energy” segment, the company said it is on track to commission giga-factories progressively over the next four to six quarters.
“After commissioning, the business will be self-funded by partnering with the right players for offtake and financing,” said the company.
Reliance Q1 results: 6 key takeaways
1. Jio rings loud
The conglomerate’s telecom division, Jio Platforms, continued its healthy show. The segment’s PAT rose 24.8 per cent YoY to ₹7,110 crore from ₹5,698 crore in Q1FY25.
Revenue from operations saw a 19 per cent year-on-year jump to come at ₹35,032 crore from ₹29,449 crore in the same quarter of the previous financial year.
Jio ARPU (average revenue per user) for the quarter jumped 14.9 per cent YoY to ₹208.8 from ₹181.7 in Q1FY25. Customer base, too, saw a decent 1.7 per cent YoY growth to reach 49.81 crore from 48.97 crore in Q1FY25.
Strong subscriber growth momentum across mobility and homes, increased customer engagement and growth in the digital services business drove the segment’s operating revenue growth.
EBITDA jumped 23.9 per cent YoY to ₹18,135 crore, and EBITDA margin rose 210 bps to 51.8 per cent, driven by higher revenues and strong margin improvement.
“Jio has scaled newer heights during the quarter, including crossing 200 million 5G subscribers and 20 million home connects. Jio AirFiber is now the largest FWA service provider in the world, with a base of 7.4 million subscribers,” said Reliance Chairman.
2. Retail shows resilience
Reliance Retail exhibited resilient performance for the quarter, with PAT jumping 28.3 per cent YoY to ₹3,271 crore and revenue from operations climbing 11.3 per cent YoY to ₹73,720 crore.
EBITDA rose 12.7 per cent YoY to ₹6,381 crore, while EBITDA margin inched up by 20 bps YoY to 8.7 per cent.
“Reliance Retail expanded its store network with 388 new store openings, taking the total store count to 19,592, with area under operation at 77.6 million sq. ft. JioMart continues to expand quick hyper local deliveries, registering 68 per cent QoQ growth and 175 per cent YoY growth of daily orders,” said the company.
“We are focusing on strengthening the portfolio of own FMCG brands, which resonate with the tastes of Indian consumers. Our Retail business continues to enhance its ability to fulfil everyday as well as specialised needs of all customer cohorts, through a multi-channel approach,” said Ambani.
3. O2C business: Favourable margins improve EBITDA
Reliance’s O2C (oil-to-chemicals) segment remained largely healthy during the quarter despite fluctuating crude oil prices.
While the segment’s revenue declined 1.5 per cent YoY to ₹1,54,804 crore, EBITDA rose 10.8 per cent YoY to ₹14,511 crore and EBITDA margin improved 110 bps YoY to 9.4 per cent.
The company said a decline in crude oil prices and lower volumes due to a planned shutdown impacted the segment’s revenue. EBITDA improved due to favourable margins on domestic fuel retail, improvements in transportation fuel cracks, and PP and PVC deltas.
However, the company said this was partially offset by lower volumes due to the planned turnaround and a decline in polyester chain margins.
“Our O2C business delivered strong growth, with a thrust on domestic demand fulfilment and offering value-added solutions through the Jio-bp network. Performance was supported by improvement in fuel and downstream product margins. Natural decline in KGD6 gas production resulted in marginally lower EBITDA for the oil and gas segment,” said Reliance Chairman.
4. Lower sales volume impacts the Oil & Gas segment
The revenue of the Oil & Gas segment decreased 1.2 per cent YoY to ₹6,103 crore, mainly on account of lower sales volume of KGD6 gas in line with natural decline in production, said the company.
Lower gas price for CBM gas and lower crude price realisation also impacted the segment’s revenue.
EBITDA declined 4.1 per cent YoY to ₹4,996 crore due to lower revenues and higher operating costs led by maintenance activity.
Consequently, the segment’s Q1FY26 EBITDA margin declined 240 bps YoY to 81.9 per cent.
5. JioStar gets IPL boost
JioStar clocked record revenues of ₹11,222 crore with EBITDA of ₹1,017 crore for Q1FY26, driven by a successful IPL season with strong growth across both TV and digital platforms.
“The quarter saw remarkable growth, achieving a subscriber base of 28.7 crore during IPL on JioHotstar and reaching over 80 crore people on TV during the quarter. With key launches, sustained leadership across markets, and a strategic entry into the FTA Hindi GEC space, the network further consolidated its position with a 35.5 per cent Entertainment TV share,” said the company.
6. Updates on “New Energy”
The company said completion and commissioning activities of its “New Energy” manufacturing are in full swing, and it is on track to achieve its targeted capacity of 55 CBG plants by the end of this year.
“This will be the world’s most advanced in technology and most integrated manufacturing ecosystem and largest at scale outside China,” said Reliance.
The company is setting up a dedicated transmission line from Kutch to Jamnagar.
“We are planning a fully integrated green chemicals ecosystem with electricity from Kutch powering our green hydrogen production and further converting it into various green chemicals. New Energy will be a self-funded platform in the next few years and deliver perpetual growth to RIL shareholders,” the company said.
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