Digital and Retail drive growth in Reliance’s Q1 FY26 earnings

In the first quarter of FY26, Reliance Industries reported a 6.0% year-on-year (Y-o-Y) increase in gross revenue, reaching Rs 2,73,252 crore (USD 31.9 billion). This growth was primarily driven by robust performances across its digital and retail businesses. 

Jio Platforms Ltd (JPL) recorded an 18.8% Y-o-Y increase in revenue, supported by strong subscriber growth in both mobility and home segments, higher consumption, and sustained momentum in digital services. Reliance Retail Ventures Ltd (RRVL) saw its revenue rise by 11.3% Y-o-Y, with all segments performing well and market-leading growth in grocery and fashion.

The Oil to Chemicals (O2C) segment experienced a 1.5% decline in revenue compared to the same quarter last year, due to a fall in crude oil prices and lower volumes caused by a planned shutdown. However, this was partially offset by increased domestic distribution of transportation fuels through Jio-bp. Revenue from the Oil and Gas segment also declined, down 1.2% Y-o-Y, mainly due to lower sales volumes of KGD6 gas amid natural production decline, reduced gas prices for coal bed methane (CBM), and lower crude realisation. This was partially mitigated by better realisation on KGD6 gas.

EBITDA for the quarter rose significantly by 35.7% Y-o-Y to Rs 58,024 crore (USD 6.8 billion). JPL’s EBITDA increased by 23.9% Y-o-Y, driven by strong growth in average revenue per user (ARPU) and a 210 basis point improvement in margins, supported by operational efficiencies. RRVL's EBITDA grew by 12.7% Y-o-Y, reflecting the benefits of strategic initiatives, operating leverage, and disciplined cost management.

The O2C segment reported a 10.8% Y-o-Y increase in EBITDA, aided by favourable margins in domestic fuel retail, improved transportation fuel cracks, and stronger margins in polypropylene (PP) and polyvinyl chloride (PVC). This was partially offset by lower volumes from the planned turnaround and weaker polyester chain margins.

Conversely, EBITDA from the Oil and Gas segment declined by 4.1% Y-o-Y, due to reduced revenue and increased operational costs associated with higher maintenance activity during the quarter. Other income for the quarter included Rs 8,924 crore from the profit on sale of listed investments.

Depreciation expenses for the quarter rose by 1.8% Y-o-Y to Rs 13,842 crore (USD1.6 billion), while finance costs increased by 18.9% Y-o-Y to ₹7,036 crore (USD 820 million), primarily due to the operationalisation of 5G spectrum assets. Tax expenses grew by 11.7% Y-o-Y to Rs 6,465 crore (USD 754 million).

Profit After Tax (PAT), including the share of profit or loss from associates and joint ventures, increased by 76.5% Y-o-Y to Rs30,783 crore (USD 3.6 billion). Excluding the one-time gain from the sale of listed investments, EBITDA grew by 15% and PAT by 25% Y-o-Y.

Capital expenditure for the quarter ended 30 June 2025 stood at Rs 29,875 crore (USD 3.5 billion), reflecting continued investment across key growth areas.

Commenting on the results, Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said,  “Reliance has begun FY26 with a robust, all-round operational and financial performance. Consolidated EBITDA for 1Q FY26 improved strongly from a year-ago period, despite significant volatility in global macros.''

He continued, ''During the quarter, energy markets encountered heightened uncertainty, with sharp fluctuations in crude prices. Our O2C business delivered strong growth, with thrust on domestic demand fulfillment and offering value-added solutions through Jio-bp network. Performance was supported by improvement in fuel and downstream product margins. Natural decline in KGD6 gas production resulted in marginally lower EBITDA for Oil & Gas segment.''

He further noted,''I am happy to share that Jio has scaled newer heights during the quarter including crossing 200 million 5G subscribers and 20 million home connects. Jio AirFiber is now the largest FWA service provider in the world, with a base of 7.4 million subscribers. Our Digital Services business consolidated its market position with a robust financial and operational performance. Through its differentiated offerings across mobility, broadband, enterprise connectivity, cloud and smart homes, Jio has positioned itself as the technology partner of choice for Indian consumers.''