RIL Q2 Profit Soars 32% to ₹29,250 Crore with O2C Ebitda Up 68%

Reliance Industries Limited (RIL), led by billionaire Mukesh Ambani, announced a significant increase in its profit after tax (PAT) for the second quarter ending September 2026. The company recorded a 32 percent rise in PAT, reaching ₹29,250 crore compared to ₹22,146 crore in the same quarter the previous year.

In addition to profit growth, RIL's gross revenue for the quarter climbed by 27.8 percent to ₹3,62,268 crore, up from ₹2,83,548 crore during the corresponding period in fiscal 2025-26. This increase was largely driven by a surge in crude oil and product prices, which strongly benefited the oil-to-chemicals (O2C) business segment, the company’s largest revenue contributor.

The O2C segment’s revenue jumped 44 percent year-on-year to ₹2,31,601 crore during the quarter. This rise reflected a 40 percent increase in crude prices, influenced by geopolitical tensions in West Asia. Transportation fuel prices also saw a sharp rise, increasing between 50 and 78 percent year-on-year. Downstream chemical product prices advanced by 25 to 35 percent, supported by higher feedstock costs.

RIL’s O2C business posted an impressive 68 percent year-on-year increase in earnings before interest, tax, depreciation, and amortization (Ebitda), reaching ₹25,203 crore. The company attributed this growth to a surge in transportation fuel cracks and improved margins in downstream chemical operations.

The firm reported, "Fuel cracks were up 3 to 3.7 times year-on-year and reached historic highs during the quarter. Polyester chain margins also recovered significantly, hitting a three-year peak, propelled by strong Paraxylene and Purified Terephthalic Acid spreads. However, earnings growth faced some limitations due to ongoing Special Additional Excise Duty (SAED) costs and under-recoveries in the Jio-bp fuel retail venture."

Despite challenges such as disrupted shipping routes through the Strait of Hormuz, RIL maintained high crude processing rates by sourcing supplies from alternative regions including Latin America, North America, and the Mediterranean. This strategic shift helped mitigate the impact of increased Arab Gulf crude price differentials and soaring freight costs, which surged 15 to 20 times. The company also redirected exports to markets offering the best returns, sending light distillates to East and South Africa and middle distillates to Europe, Latin America, and West Africa.

Jio-bp, RIL’s fuel retail partnership, experienced a 4.2 percent year-on-year increase in combined petrol and diesel sales volumes, reaching 1.83 million kilolitres. This growth was driven by sustained high fuel demand and enhanced retail operations.

Mukesh Ambani commented on the quarter’s performance, saying, "Our oil-to-chemicals segment delivered a particularly strong result, supported by tight fuel market conditions, better downstream petrochemical margins, and solid domestic demand. Our capacity to optimize feedstock sourcing and product placement across the value chain enabled us to capture improved margins."

On the oil and gas exploration and production front, revenue slipped 0.6 percent to ₹6,020 crore, primarily due to lower output and gas price realizations from the KG-D6 block. This decline was partly offset by higher condensate prices and increased coal bed methane (CBM) prices and volumes. Production from the KG-D6 field fell 9 percent to 57.8 billion cubic feet equivalent (BCFe), while CBM output rose 21.4 percent to 3.4 BCFe.

The exploration and production segment’s Ebitda declined 2 percent to ₹4,901 crore, reflecting lower revenue and increased government levies. Exchange rate fluctuations provided some relief by supporting earnings.

RIL’s capital expenditure for the quarter totaled ₹38,153 crore. Investments were focused primarily on the oil-to-chemicals business, new energy projects underway, and expanding infrastructure and distribution capabilities across its consumer businesses.

Reliance Industries operates as a diversified conglomerate with interests spanning energy, petrochemicals, telecommunications, and retail. Its Q2 financial results underline the company’s resilience in a volatile commodity market and highlight the importance of its oil-to-chemicals segment in driving profitability. The company’s ability to adapt sourcing and distribution strategies amid geopolitical disruptions demonstrates its operational flexibility in a complex global environment.