On a recurring basis, PAT before minority interests rose 6.1 per cent to a record ₹23,196 crore | Photo Credit: FRANCIS MASCARENHAS

Reliance Industries reported a robust set of Q1 FY27 earnings, with strong performances from its oil-to-chemicals (O2C) and telecom businesses helping it surpass street expectations. While reported profit declined due to a high base from a one-time gain last year, recurring profitability reached a record level.

Profit fell 22.4 per cent y-o-y to ₹20,946 crore, largely because Q1 FY26 included a one-time gain from the sale of the company’s stake in Asian Paints. Excluding ₹8,924 crore from Asian Paints gains, the profit for Q1 FY27 could have been 16 per cent higher.

Higher finance costs and depreciation charges also weighed on the bottom line. However, on a recurring basis, profit after tax before minority interests rose 6.1 per cent to an all-time high of ₹23,196 crore from an adjusted ₹21,859 crore a year ago. The reported profit figure was ahead of Bloomberg’s consensus estimate of ₹19,987 crore.

Mukesh Ambani, Chairman and Managing Director, Reliance Industries said, “Reliance has made a steady start to FY27, with all businesses delivering strong operating performance even as the company witnessed continuing geopolitical tensions and volatile commodity markets.”

Gross revenue increased 24.5 per cent y-o-y to ₹3.40 lakh crore, while EBITDA rose 10.7 per cent to a record ₹47,517 crore. Revenue from operations climbed 25.4 per cent to ₹3,11,850 crore from ₹2,48,660 crore in the corresponding quarter last year, exceeding Bloomberg’s estimate of ₹2,98,716 crore. Recurring EBITDA also surpassed analysts’ forecast of ₹46,660 crore.

“Strong O2C margins and resilient Jio growth powered Reliance’s quarter, offsetting weakness in retail and lingering pressure in the Upstream business,” said Maulik Patel, Head of Research at Equirus Securities. Further adding, Kranthi Bathini, Director, Equity Strategy at WealthMills Securities, said, “The company delivered a strong performance led by its core O2C and telecom businesses, with O2C staging a notable recovery despite a challenging macroeconomic backdrop.”

O2C drives earnings recovery

The O2C segment delivered one of its strongest quarters in recent years. Revenue surged 30.4 per cent to ₹2,01,803 crore from ₹1,54,804 crore in Q1 FY26, while EBITDA rose 17.2 per cent to ₹17,010 crore from ₹14,511 crore. The improvement was driven by a sharp recovery in fuel cracks, which increased 2.5 to 4.5 times y-o-y, along with downstream chemical margins reaching three-to-four-year highs. These gains more than offset lower production resulting from a planned maintenance turnaround.

Jio continues momentum

Jio continued to execute well with subscriber additions, modest ARPU improvement and record-high EBITDA margins, reaffirming strength of its telecom franchise. EBITDA grew 15.1 per cent to ₹20,865 crore, with EBITDA margins expanding by 150 basis points (bps) to 53.3 per cent from 51.8 per cent.

Digital services revenue grew 20 per cent y-o-y, significantly ahead of the 11 per cent growth in connectivity services. Growth was driven by content, cloud computing, Internet of Things (IoT) and managed services, highlighting Jio’s diversification beyond traditional telecom operations. Average revenue per user (ARPU) increased to ₹215.6 from ₹208.8 in the year-ago quarter.

Retail margins under pressure

Retail remained key weak spot, with margin compressing to a 15-quarter low amid investments in scaling digital commerce. Reliance Retail posted revenue of ₹90,408 crore, up 7.4 per cent in Q1 FY26. However, EBITDA slipped marginally to ₹6,309 crore with margins contracting 80 basis points to 7.9 per cent from 8.7 per cent.

Upstream steady; debt declines

Upstream business recovered sequentially following maintenance completion, though lower KG-D6 gas prices and volumes continued to weigh on earnings. EBITDA reported a marginal decline to ₹4,973 crore from ₹4,996 crore a year earlier.

Reliance’s balance sheet continued to remain strong, with net debt declining 1.4 per cent to ₹1,22,914 crore at the end of June from ₹1,24,717 crore at the end of March, reflecting continued financial discipline.

Published on July 17, 2026