Reliance Q1 FY26 Results: Record-Breaking Profits & Multi-Engine Growth 🚀
CMP: ₹1,477
Date: July 2025
Analysis by: Profit From IT, SEBI Registered Investment Advisor
Executive Summary
Reliance Industries Limited (RIL) delivered its highest-ever quarterly consolidated EBITDA and Net Profit in Q1 FY26, showcasing robust growth in digital, retail, and O2C segments, while maintaining strong balance sheet metrics. The company continues to leverage its diversified business portfolio and innovation edge to drive long-term shareholder value.
1. Key Highlights & Management Commentary
Highest-Ever EBITDA: ₹58,024 Cr (↑36% YoY)
Net Profit After Tax & Associates/JVs: ₹30,783 Cr (↑76.5% YoY)
Record Retail Expansion: 388 new stores, 19,592 total stores
Jio Milestones: 498 million subscribers, 200+ million 5G users, 20+ million home broadband connections
JioMart Quick Orders: +175% YoY hyper-local daily order growth
Mukesh Ambani, CMD:
"Reliance has begun FY26 with a robust all-round operational and financial performance, despite global macro volatility. Our diversified business engines—digital, retail, and O2C—are scaling new heights, supporting our vision of inclusive growth and energy transformation."
2. Consolidated Financials – Snapshot
*EPS restated due to bonus issue.
Visual: Quarterly EBITDA & Net Profit (₹ Cr)
3. Segmental Performance 🏢
A. Oil to Chemicals (O2C)
Growth driven by higher transportation fuel margins and Jio-bp volume boost. Decline in polyester margins offset by improved domestic fuel demand.
B. Oil & Gas (Exploration & Production)
Marginal decline due to natural fall in KGD6 production and lower realization.
C. Digital Services (Jio Platforms)
Added 9.9 mn subscribers; ARPU up 14.9% YoY to ₹209/month. JioAirFiber: 7.4 mn homes, world's largest FWA service.
D. Retail (Reliance Retail)
Store count at 19,592 (+388 net adds). Customer base: 358 mn. Leading in grocery and fashion, rapid digital growth in JioMart.
E. Others (incl. Media & FMCG)
4. Profitability, Growth & Valuation Ratios
*CMP ₹1,477 & annualized EPS ₹60.2 (FY25).
5. Key Performance Indicators (KPIs) by Industry
Digital: ARPU ₹209, Data Usage 37GB/month/user, Churn 1.8%, 24% data traffic growth
Retail: 358 mn customers, 19,592 stores, 389 mn transactions (+16% YoY), JioMart daily orders +175% YoY
O2C: Higher domestic fuel sales, improved product margins, volume boost from Jio-bp
Oil & Gas: KGD6 gas price realization improvement but lower volumes
Segmental Revenue Mix Pie Chart
6. Outlook – Near-Term & Long-Term 🚦
Near-Term (Next 1-2 Quarters):
Digital: Sustained ARPU growth, further Jio 5G penetration, AI and cloud opportunities.
Retail: Expansion into Tier 2/3 cities, digital commerce scaling, FMCG brand portfolio gains.
O2C: Monitoring global energy price trends, stable margins.
Oil & Gas: KGD6 volume trends and price realization key to watch.
Long-Term (Strategic Vision):
Digital leadership in 5G, cloud, and consumer platforms.
Retail market dominance through omni-channel and private label push.
Green energy giga-factories to be commissioned over next 4-6 quarters, supporting RIL’s clean energy ambitions.
O2C value addition and resilience despite global volatility.
7. Conclusion for Long-Term Investors 📈
Positives
Consistent earnings growth across diversified engines.
Strong balance sheet: Net debt/EBITDA < 1x.
Sector leadership: Digital, retail, and O2C.
Aggressive innovation & digital adoption.
Potential Risks
Global crude oil volatility, regulatory changes in telecom & retail, capital allocation towards new energy.
Investment Stance:
Cautiously Optimistic / Accumulate on Dips
Reliance remains a core portfolio holding for long-term wealth creation, leveraging India’s digital, consumption, and energy megatrends.
8. Disclosure
This analysis is provided solely for informational purposes and does not constitute investment advice. Investors should perform their own due diligence before making investment decisions.
