RIL Q2 FY27 Profit Falls 22% Due to Asian Paints Gain
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RIL Q2 FY27: Profit Falls 22% After Asian Paints Gain; Revenue Rises 25% YoY
Reliance Industries’ latest quarterly results show a mixed picture, with some segments delivering strong growth while others faltered. The company’s consolidated net profit for the quarter ended June 2026 came in at Rs 20,946 crore, a decline of 22% year-on-year due to an exceptional gain from the sale of its stake in Asian Paints during the corresponding period last year.
The 25% year-on-year increase in revenue from operations to Rs 3.11 lakh crore provides some comfort, as does the steady growth of Reliance’s digital services arm, Jio Platforms. However, depreciation expenses have risen 9% year-on-year to Rs 15,100 crore, mainly due to higher depreciation in the Digital Services business following the capitalisation of 5G assets.
Finance costs too have increased, up 18% from a year earlier to Rs 8,337 crore ($881 million), largely due to higher liability balances and the capitalisation of those same 5G assets. The contrast between Reliance’s core Oil-to-Chemicals (O2C) business and Jio Platforms is striking. While O2C reported a 30% year-on-year increase in revenue, driven by higher crude oil prices, it was also partly offset by lower production due to a planned turnaround.
This highlights the fragility of Reliance’s energy business, which continues to grapple with supply chain disruptions and volatile commodity markets. On the other hand, Jio Platforms has emerged as one of the brightest spots in Reliance’s portfolio. The company reported a 9.2% year-on-year rise in profit after tax (PAT) to Rs 7,764 crore for the quarter ended June 2026, driven by continued growth in subscriber market share and higher average revenue per user (ARPU).
Mukesh Ambani noted that Jio’s performance across mobility, home broadband, and enterprise services remained strong, driving healthy earnings growth of 15% year-over-year. This growth is a testament to Reliance’s strategic bet on digital infrastructure, which has paid off handsomely in recent years.
The mixed bag of results from India’s most valuable company highlights the structural challenges facing the country. As the world grapples with the twin headwinds of a global slowdown and rising interest rates, corporate India will need to navigate these complexities with care. For Reliance, there are several key areas to watch in the coming quarters, including the impending IPO of Jio Platforms, which could raise up to $10 billion.
Additionally, the ongoing investment in expanding and strengthening Reliance’s consumer businesses will be crucial in driving growth. As the Indian economy navigates these choppy waters, one thing is clear: Reliance’s quarterly results are just a snapshot of a much larger story unfolding on the economic horizon.
Reader Views
- EKEditor K. Wells · editor
Reliance's quarterly results highlight the divergent fortunes of its core energy business and its prized digital arm, Jio Platforms. While the Oil-to-Chemicals segment struggles with production disruptions and volatile crude prices, Jio continues to deliver steady growth in subscribers and revenue per user. However, investors should be wary of Reliance's aggressive capitalization of 5G assets, which is driving up depreciation expenses and finance costs. As the company pours more money into its digital ambitions, it risks exacerbating existing weaknesses in its energy business – a delicate balancing act that will test Mukesh Ambani's leadership.
- ADAnalyst D. Park · policy analyst
Reliance's Q2 results highlight the dual-track trajectory of its core businesses - while Jio Platforms continues to defy expectations with robust growth and expanding market share, the Oil-to-Chemicals segment remains vulnerable to commodity price fluctuations and supply chain disruptions. It's puzzling that Mukesh Ambani hasn't yet diversified O2C's revenue streams beyond fossil fuels, given the industry's long-term sustainability concerns. Unless RIL invests aggressively in renewable energy or other low-carbon sectors, its future profitability may remain hostage to volatile markets.
- CSCorrespondent S. Tan · field correspondent
While Reliance's Q2 results may seem like a mixed bag at first glance, it's clear that Jio Platforms is driving the growth story here. But what's being overlooked is how much of this success relies on aggressive marketing and pricing strategies that might not be sustainable in the long term. As consumers become increasingly price-sensitive, will Reliance's low-cost model continue to attract new subscribers? The company needs to walk a fine line between keeping costs under control and maintaining profitability.