Reliance Industries Posts Steady Q3 FY26 Performance

Overview of Consolidated Performance

Reliance Industries Ltd (RIL) delivered a resilient performance in the third quarter of fiscal 2026, with consolidated revenue rising 10% year-on-year to Rs 2.94 lakh crore. Growth was primarily driven by its digital services, Oil-to-Chemicals (O2C), and retail businesses. Net profit (pre-minority) increased modestly by 1.6% to Rs 22,290 crore, while profit before tax rose 3.7% to Rs 29,697 crore. Consolidated EBITDA grew 6.1% to Rs 50,932 crore, supported by strong earnings in digital services and O2C, offsetting weaknesses in upstream oil and gas.

Mukesh Ambani, Chairman and Managing Director of RIL, stated, “Reliance’s consolidated performance in 3Q FY26 reflects consistent financial delivery and operational resilience across businesses.”

Oil-to-Chemicals (O2C) Segment

Revenue and EBITDA Growth

The O2C business experienced strong momentum, with quarterly revenue increasing 8.4% to Rs 1.62 lakh crore from Rs 1.49 lakh crore in the previous year. EBITDA for the segment rose 15% to Rs 16,507 crore, benefiting from higher volumes and an expanded fuel retail footprint.

Key Drivers and Operational Insights

The segment’s performance was supported by a sharp rise in transportation fuel cracks, which climbed 62–106% year-on-year during the quarter. This growth was partially offset by lower downstream chemical margins and increased feedstock freight rates. Jio-BP fuel retailing operations continued to expand, with 2,125 outlets in operation, reflecting a 14% increase from the previous year.

Srinivasan T, COO of O2C (Refining), noted that while earnings were constrained by higher freight rates and weaker downstream deltas, domestic fuel sales continued to show healthy growth.

Jio Platforms: Digital Services Expansion

Subscriber Growth and Revenue

Reliance Jio continued its strong performance, with revenue increasing 12.7% year-on-year to Rs 43,683 crore. EBITDA from the segment grew 16.4% to Rs 19,303 crore. The subscriber base reached 515.3 million, with 5G users surpassing 250 million. Total home connects exceeded 25 million, and JioAirFiber achieved 11.5 million subscribers globally. Average revenue per user (ARPU) rose 5.1% to Rs 213.7.

Strategic Highlights

The growth was supported by accelerated subscriber additions and expansion of 5G services, which now account for over 50% of network traffic. Akash M. Ambani emphasized Jio’s role in making India “AI-empowered,” leveraging its extensive subscriber base and distribution network to drive innovation.

Oil & Gas: Challenges and Market Dynamics

The oil and gas segment reported revenue of Rs 5,833 crore, down 8.4% year-on-year, and EBITDA fell 13% to Rs 4,857 crore. The decline was attributed to lower production from the KGD6 block, weaker price realizations, and higher operational costs due to periodic maintenance.

Sanjay Roy, President of E&P, highlighted that while domestic gas demand remains robust, EBITDA margins were impacted by declining prices and production. The company continues to contribute significantly to India’s domestic gas production amid rising LNG exports from North America.

Retail Segment: Steady Expansion

Reliance Retail posted revenue of Rs 97,605 crore, up 8.1% from the previous year, with EBITDA rising to Rs 6,915 crore. The business operated 19,979 stores, covering 78.1 million sq. ft., and saw a nearly fivefold increase in hyper-local delivery orders.

Isha M. Ambani noted that the quarter was marked by portfolio strengthening, onboarding of new brands, and successful execution of the demerger of Reliance Consumer Products Ltd. The retail segment’s FMCG business continues to expand, driven by robust growth in beverages and snacks, and the acquisition of international brands like Brylcreem, Tony & Guy, Badedas, and Matey.

JioStar: Leadership in Digital Entertainment

JioStar maintained strong operational performance, generating revenue of Rs 8,010 crore and EBITDA (including other income) of Rs 1,303 crore. JioHotstar averaged 450 million monthly active users, up 13% sequentially. The television network reached over 830 million viewers, delivering more than 60 billion hours of watch time, reinforcing its leadership in digital entertainment.

Financial Health and Capital Expenditure

During the quarter, RIL’s capital expenditure stood at Rs 33,826 crore, fully covered by cash profits of Rs 41,303 crore. Net debt decreased to Rs 1.17 lakh crore as of December 31, reflecting the company’s strong balance sheet and financial stability.

Conclusion

Reliance Industries demonstrated consistent growth across its core verticals—O2C, Jio Platforms, Retail, and Oil & Gas—despite challenges in oil and gas. Strong operational execution, strategic expansions, and robust consumer engagement continue to position the company for sustained long-term growth.

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Sorit Chaudhary

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