Reliance Industries (RELIANCE IN) – Q2FY26 Result Update – Consolidated EBITDA/PAT in-line, strong digital & retail growth – BUY
Published on 18 Oct 2025
Reliance Industries’ (RIL) conso EBITDA came in at Rs458.9bn (PLe: Rs439.5bn, BBGe: Rs444.8bn, +7%/+17% QoQ/YoY) with Adj. PAT of Rs182bn (+1%/10% QoQ/YoY; PLe: Rs187.4bn, BBGe: Rs200.2bn). Standalone EBITDA at Rs143.9bn (PLe: Rs151.6bn; +9%/+7.2% QoQ/YoY) was driven by sharp recovery in fuel cracks (+22-37%), growth in polymer deltas – PE/PP/PVC (+6%/+8%/+5%), partly offset by decline in polyester chain cracks (-9%) and natural decline in KGD6 volumes. Retail EBITDA grew +7%/+17% QoQ/YoY, to Rs66.2bn. Jio ARPU grew +1%/+8% QoQ/YoY to Rs211.4 on the back of earlier tariff hike, with a subscriber addition of 8.3mn to 506.4mn. JPL conso EBITDA stood at Rs187bn, +18% YoY. The stock is trading at 9.9/8.9x conso. FY27/28E EV/EBITDA. New energy projects remain on track with commissioning of 4 PV module lines; 1st cell line to be commissioned in few weeks (Oct’25). In absence of any quantitative details, we value Rs111/share for this segment valuing it at 2x the earlier announced capex of Rs750bn. We maintain a BUY rating, driven by potential upside in the new energy segment and strong momentum in digital and retail businesses with an upgraded target price of Rs1,663 (previously Rs1,609).
