Reliance Industries shares are likely to remain in focus on Monday, 2 November, after the Mukesh Ambani-led conglomerate reported a record quarterly profit for the July-September quarter on Friday, 30 October. The company’s strong performance was driven by a sharp recovery in its oil-to-chemicals (O2C) business and continued growth in digital services, which helped offset relatively subdued earnings from retail.
Reliance Industries Ltd (RIL) reported a consolidated profit after tax, including its share of associates and joint ventures, of ₹29,550 crore in the second quarter of FY27, marking a 33.8% increase from ₹22,092 crore in the corresponding period last year. Net profit attributable to owners of the company rose 40% year-on-year to ₹25,548 crore.
Consolidated revenue increased 27.8% year-on-year to ₹3,62,268 crore, while EBITDA grew 23.9% to a record ₹62,409 crore. The latest quarterly profit also exceeded the ₹23,196 crore reported in the previous quarter, setting a new high for India’s largest listed company by market capitalisation.
The O2C business emerged as the biggest contributor to earnings growth, benefiting from stronger global transportation fuel cracks and improving petrochemical margins. EBITDA from the segment jumped 67.9% year-on-year to ₹25,203 crore, while revenue rose 44.2% to ₹2,31,601 crore.
Global supply disruptions linked to the West Asia conflict, including tensions around the Strait of Hormuz, along with attacks on refining infrastructure in the region and Russia, pushed fuel cracks to 3.0–3.7 times their year-ago levels. Dated Brent crude averaged $97 per barrel during the quarter, up 40.6% year-on-year.
The improvement in refining margins came despite challenges from geopolitical disruptions, higher crude premiums and rising freight costs. Reliance said its diversified crude sourcing strategy and ability to optimise product placement helped it capture stronger margins. The company recorded its highest-ever crude processing volumes by increasing supplies from the Americas and the Mediterranean and by redirecting exports to markets offering better net realisations.
However, higher crude premiums, elevated freight and insurance expenses, costs related to the Special Additional Excise Duty (SAED), and under-recoveries in domestic fuel retail weighed on the overall performance.
Reliance said its first-half performance puts the O2C business on track to deliver annualised EBITDA of more than ₹80,000 crore. It also expects its new energy projects to begin contributing to earnings from FY28.
On Friday, RIL shares closed 0.44% lower at ₹1,163.55 apiece on the BSE.
RIL shares – Should you buy, sell or hold?
Nuvama Institutional Equities said Reliance Industries’ new energy business is expected to start contributing to earnings from FY28, with the company accelerating the rollout of its projects. The brokerage noted that 6GW of solar module and 5GW of cell manufacturing capacity has commenced operations, with the combined capacity expected to increase to 20GW by next year. This could potentially add 5% to the company’s profit after tax (PAT).
The brokerage also highlighted Reliance’s plans to commission 40GWh of battery energy storage system (BESS) capacity in FY27, which can be scaled up to 120GWh. The company is also targeting 2GW of transmission lines by Q3FY27 and 3GW by March 2027.
Infrastructure development for a 150GW round-the-clock (RTC) power site is also underway. According to Nuvama, this could reduce captive power costs by more than 25%, potentially adding 6% to PAT.
However, Nuvama cautioned that persistent weakness in the retail business, which trades at a rich valuation of 27 times EV/EBITDA, could dilute the strong performance of the O2C segment, valued at 12.5 times EV/EBITDA.
The brokerage maintained a Buy rating on Reliance Industries but cut its target price to ₹1,703 from ₹1,766, factoring in a 25% holding-company discount for the Jio listing. The stock trades at 18 times its FY28 estimated earnings per share (EPS), it added.
Equirus Securities said Reliance Industries delivered a strong performance in the second quarter of FY27, driven primarily by its oil-to-chemicals (O2C) business. Consolidated operating EBITDA stood at ₹56,620 crore, up 19% quarter-on-quarter and 23% year-on-year. This was 7% higher than the brokerage’s estimate of ₹52,700 crore and 11% above consensus expectations.
The O2C segment reported a sharp improvement, with EBITDA rising 48% sequentially and 68% year-on-year to ₹25,200 crore. EBITDA per tonne increased 26% quarter-on-quarter to $145, supported by stronger transportation fuel cracks, improved downstream chemical margins and a recovery in throughput.
Reliance’s digital services business, Jio, delivered a steady performance. Average revenue per user (ARPU) increased to ₹219 from ₹216 in the previous quarter, while net subscriber additions stood at 9 million. The segment also reported further margin expansion.
However, the retail business remained weak, with revenue growth of just 6% year-on-year, even after adjusting for the base effect following the demerger. EBITDA declined 3% sequentially and 13% year-on-year to ₹5,780 crore. Equirus attributed the performance to investments in digital commerce, the absorption of input-cost inflation and a shift in the festive calendar to the third quarter of FY27.
Upstream EBITDA declined 1% quarter-on-quarter and 2% year-on-year to ₹4,900 crore, as lower gas production from the KG-D6 block offset growth in coal-bed methane (CBM) output.
Equirus Securities has a Long rating on Reliance Industries, with a target price of ₹1,537. However, the brokerage said its recommendation is under review.
Reliance Industries shares performance
Reliance Industries shares have remained under pressure across most timeframes, with the stock declining 2.22% over the past week and 3.84% in two weeks. It has fallen 2.02% over the past month, while the decline has widened to 10.11% over three months and 18.68% over six months.
The stock is down 26.12% so far in 2026 and has shed 21.83% over the past year. Its performance over longer periods has also been largely subdued, with a marginal gain of 0.68% over three years and a decline of 0.64% over five years. However, Reliance Industries shares have delivered a strong return of 383.99% over the past decade.
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