Reliance Industries Reports 78.32% Profit Surge in Q1FY26 Results

Reliance Industries Limited (RIL) has announced a remarkable 78.32% increase in its consolidated net profit for the first quarter of fiscal year 2026 (Q1FY26), reaching ₹26,994 crore compared to ₹15,138 crore in the same quarter of the previous year. This significant growth has been attributed to robust performance across its business segments, particularly in retail and digital services, as well as a one-time gain from the sale of a stake in Asian Paints.

The company reported revenue from operations of ₹248,660 crore, marking a year-on-year increase of 5.27% from ₹236,217 crore in Q1FY25. Mukesh D. Ambani, Chairman and Managing Director of Reliance Industries, expressed confidence in the company's growth trajectory, stating, 'Reliance has begun FY26 with a robust, all-round operational and financial performance.' He emphasized the company’s ambition to double its business every four to five years, a goal that has been consistently set over the years.

Significant highlights from the results include:

1. **Retail Business Growth**: Reliance Retail's revenue surged to ₹84,171 crore, reflecting an 11.3% year-on-year increase, with EBITDA rising to ₹6,381 crore. 2. **Jio Platforms' Milestones**: The telecom giant Jio surpassed 200 million 5G subscribers and 20 million home broadband connections. Jio Platforms recorded an EBITDA of ₹18,135 crore, up 24% year-on-year. 3. **Oil & Gas Segment Stability**: The Oil to Chemicals (O2C) segment reported an EBITDA of ₹4,996 crore, slightly down from ₹5,210 crore in Q1FY25, primarily due to fluctuations in crude oil prices and planned shutdowns. 4. **Strategic Acquisitions**: RIL has recently expanded its retail footprint, opening 388 new stores, bringing the total to 19,592, and enhancing its customer base to 358 million.

RIL's financial results have drawn attention from global investors, with various analysts predicting a continued upward trend. Goldman Sachs, for example, anticipates a 15% year-on-year growth in EBITDA for Q1, the highest in six quarters, driven by refining and improved margins.

The transaction involving the stake sale in Asian Paints, which netted approximately ₹9,579 crore, provided a significant one-time boost to RIL's profits. This move is part of a broader strategy to optimize asset allocation and reinvest in core business segments.

Looking forward, analysts remain optimistic about RIL's potential, particularly with its focus on expanding digital services and retail operations. The increasing subscriber base and market penetration of Jio platforms, coupled with the growth of Reliance Retail, positions the company favorably in the competitive landscape.

As RIL continues to navigate the complexities of global markets, its strong quarterly performance reaffirms the resilience and adaptability of its diversified business model, making it a key player in India's economic landscape.