Overview: A Strong Q2 for Reliance Industries Across Segments
Reliance Industries Limited (RIL) delivered a robust second quarter, punctuated by double-digit year-on-year (YoY) growth across its major arms: Jio, Reliance Retail Ventures (RRV), and the Oil-to- chemicals (O2C) segment. The results underline a balanced expansion in telecom, retail, and energy segments, even as global headwinds influence margins in select areas.
Reliance Retail Ventures Led the Charge
RRV reported a 21.9% jump in Q2 profit to ₹3,457 crore, up from ₹2,836 crore a year earlier. Revenue climbed 18% YoY to ₹90,018 crore, driven by grocery, fashion & lifestyle, and consumer electronics segments. Grocery grew 23% YoY with fashion & lifestyle close behind at 22%, reflecting strong festive demand. Consumer Electronics rose 18% YoY aided by GST rate reductions and new product launches.
EBITDA for RRV stood at ₹6,816 crore, up 16.5% YoY, with EBITDA before investment income at ₹6,624 crore, rising 16.7% YoY. The numbers illustrate the strength of Reliance’s retail ecosystem, which continues to expand store penetration while delivering higher per-customer spend in a competitive Indian retail landscape.
Jio’s ARPU and Subscriber Momentum
Reliance Jio Infocomm (Jio) reported continued growth in ARPU and data usage. ARPU rose to ₹211.4 in Q2 FY26 from ₹208.8 in Q1 and ₹195.1 in Q2 FY25, reflecting improved monetisation and ongoing engagement despite promotional 5G offers in the market. Jio’s per-capita data consumption reached 38.7 GB per month, with total data traffic up 29.8% YoY in the quarter.
Jio added 8.3 million net subscribers during the quarter, keeping churn stable at 1.9%. The expansion in subscribers coupled with ARPU growth supported a YoY rise in net profit to ₹7,379 crore, a 12.8% increase year over year, and a strong QoQ uptick in EBITDA to ₹18,757 crore, up 17.7% YoY. Net sales (net of GST) benefited from market share gains in mobility and homes, higher ARPU, and growth in digital services.
Overall Consolidated Picture and Guidance
For the consolidated business, RIL’s quarterly EBITDA is expected to be in the ₹445 billion range, reflecting a healthy 3.6% QoQ improvement and a 14.6% YoY jump. Analysts highlight that the gains are broad-based, with O2C and Retail confirming steady momentum while E&P faces natural decline pressures in KG D6 gas output. Retail EBITDA and Digital EBITDA are among the standout performers, supported by continued expansion and monetisation of digital services.
Industry observers, including JM Financial and Investec, note that RIL is entering a phase of earnings rebound and robust cash generation. Investec even upgraded its stance to a ‘buy’, citing the stock’s risk-reward profile and the company’s diversified earnings trajectory. Market commentary also points to a potential re-rating driven by sustained profitability in retail, telecom, and digital platforms.
Operational Highlights Across Segments
O2C (Oil to Chemicals) revenue grew modestly as refining throughput increased, with margins benefiting from higher throughput and auto-fuel marketing strength, offset by softer petchem spreads. Jio’s digital ecosystem continued to expand, with a blend of ARPU improvement and ongoing subscriber gains underpinning EBITDA growth. Retail’s healthy performance was anchored by grocery and fashion segments, which posted standout growth rates, while consumer electronics benefited from policy tailwinds and new product launches.
Market Context and What Investors Should Watch
As Reliance charts its Q2 trajectory, investors will be watching for sustained margin expansion, the trajectory of Jio’s ARPU in a competitive telecom environment, and the pace of retail footprint expansion. The company’s leadership continues to emphasize a strategic push toward homegrown technology, digital services, and integrated consumer experiences, positioning it for potential upside as new product cycles and digital monetisation continue to mature.
Conclusion: A Positive Signal for Q2 and Beyond
Overall, Reliance’s Q2 performance signals a healthy multi-pronged growth story. With Jio’s ARPU climbing to ₹211 and Retail leading with double-digit growth, the conglomerate demonstrates resilience amid macro uncertainties. As the company advances its Digital India-aligned strategy and expands its footprint across retail and telecom, investors may expect steady earnings growth and improved cash generation in the quarters ahead.
