Reliance Industries (RELIANCE IN) – Q2FY27 Result Update – EBITDA beat led by strong O2C performance – BUY
Published on 31 Oct 2026
Consolidated EBITDA came in ahead of estimates at INR566.2bn (PLe: INR491.4bn; BBGe: INR519.4bn) led by strong performance in O2C business amid tight product cracks. As a result, Adj. PAT increased 22.0% QoQ to INR255.5bn (PLe: INR213.4bn; BBGe: INR213.6bn). Standalone EBITDA surged 55.6% YoY and 14.7% QoQ to INR223.9bn, driven by tight global fuel and feedstock markets and improved polyester margins, partly offset by weak marketing margins, higher crude premiums, freight and insurance costs. Retail performance remained subdued, with EBITDA from operations declining 11.1% YoY while remaining flat QoQ at INR58.9bn, reflecting elevated input costs, ongoing digital investments and the shift in festive demand to Q3FY27. Management expects performance to improve in 2HFY27. In the Digital business, Jio's ARPU improved 1.5% QoQ to INR218.8, supported by healthy subscriber additions of 9.1mn, taking its 5G subscriber base to 300mn. The O2C segment is expected to remain resilient, supported by healthy refining cracks amid persistent global supply disruptions, while weakness in Retail remains a key monitorable. We maintain BUY with a revised TP of INR1,490 (earlier INR1,480), underpinned by resilient standalone performance. We incorporate INR111/share for the New Energy business, valued at 2x the announced capex of INR750bn.
