Reliance Industries Q2 FY26: A Broad-Based Upswing Across Segments
Reliance Industries (RIL) unveiled a robust second-quarter performance, delivering double-digit year-on-year gains across its diversified empire. The conglomerate’s quarterly highlights show strong momentum in retail, telecommunications, and digital services, with oil-to-chemicals (O2C) and energy segments providing a mixed backdrop as macro conditions evolve. The results come amid heightened investor scrutiny as Reliance gears up for a potential IPO-related narrative around its telecom and retail arms.
Jio: ARPU Up, Subscriber Momentum Remains Strong
Reliance Jio Infocomm reported a continued improvement in AGRU (average revenue per user) and data engagement. ARPU rose to ₹211.4 in Q2 FY26, up from ₹208.8 in Q1 FY26 and ₹195.1 in Q2 FY25, signaling sustained monetization despite promotional 5G offers. The company highlighted a per-capita data consumption of 38.7 GB per month and a 29.8% YoY growth in total data traffic. Net subscriber additions were robust, with 8.3 million new customers in the quarter and churn steady at 1.9%. Overall, Jio PAT rose 12.8% YoY to ₹7,379 crore, lifting quarterly EBITDA to ₹18,757 crore (+17.7% YoY).
What’s Behind the Jio Upturn?
The margin expansion and ARPU uplift reflect better monetization and ongoing digital service ramp, supported by the expansion in mobility and home services. Jio Platforms reported 14.9% YoY revenue growth as the subscriber base expands and ARPU benefits from enhanced offerings and platform scale. The company also benefits from continued domestic 5G adoption, although promotional activity provides near-term headwinds on ARPU mechanics.
Reliance Retail Ventures: Grocery, Fashion, and Electronics Drive Growth
Reliance Retail Ventures (RRVL) posted an 18% YoY rise in revenue to ₹90,018 crore, with net profit surging 21.9% to ₹3,457 crore. The earnings reflect broad-based consumer demand and strong performance across key baskets. Grocery grew 23% YoY, while Fashion and Lifestyle rose 22% YoY, aided by festive buying patterns. Consumer Electronics also posted an 18% YoY gain, helped by GST rate reductions and new product launches. EBITDA in the segment stood at ₹6,816 crore, up 16.5% YoY, with EBITDA before investment income at ₹6,624 crore (+16.7% YoY).
Consolidated Performance and Key Takeaways
Across the conglomerate, Reliance reported a mixed mix of growth drivers and margin dynamics. Oil to Chemicals (O2C) revenue grew 3.2% YoY, while production meant for sale rose 2.3% YoY. Jio’s uplift in ARPU and subscriber base supported margins, and Retail delivered steady EBITDA gains driven by expansion and higher footfalls. The company noted that domestic fuel retail through Jio-bp expanded, with volume growth in high-demand fuels (HSD) and motor spirit (MS) contributing to the top line.
Market Narrative and Analyst Context
Market watchers have been eyeing Reliance’s ability to sustain earnings growth as it navigates inflationary pressures, regulatory developments, and competition in mobile and retail markets. Brokerage commentary around Q2 projections highlighted expectations of continued outperformance in Retail and Digital EBITDA, offset slightly by upstream challenges in E&P. The broader sentiment remains bullish as investors weigh Reliance’s unique scale and ability to monetize a growing user base across its integrated ecosystem.
What This Means for Investors
With Jio’s ARPU climbing and Retail delivering double-digit revenue growth, the quarter reinforces the allure of Reliance as a multi‑line growth proxy in India’s consumption story. The stability of subscriber churn and strong data usage underpin longer-term monetization potential in telecom and digital services, while Retail benefits from ongoing store expansion and product assortment. As the market anticipates further disclosures around valuations and strategic moves, Reliance’s Q2 performance provides a solid foundation for future momentum.
Disclaimer and Context
Analysts cited in market briefings emphasize that quarterly results should be evaluated alongside global energy dynamics, currency movements, and evolving domestic consumption patterns. The commentary below reflects insights from market experts and RBI-linked macro considerations as traders prepare for post-earnings commentary and potential reactions to guidance.
