RIL Q2 Results: O2C segment revenue rises 3.2% YoY; EBITDA margin up 130 bps

The segment's operating profit, or earnings before interest, taxes, depreciation, and amortisation (EBITDA), jumped 20.9% YoY to ₹15,008 crore as against ₹12,413 crore logged in the year-ago period.

EBITDA margin increased by 130 basis points YoY to 9.3%.

Further, it added that the segment's exports rose 0.5% YoY to ₹70,955 crore.

In its press release, RIL said that the O2C segment revenue for Q2 FY26 is higher by 3.2% YoY to ₹160,558 crore ($ 18.1 billion). Production meant for sale increased 2.3% on a Y-o-Y basis with higher throughput in both primary and secondary units. Jio-bp network added 236 outlets on a YoY basis, leading to a volume growth of 34% for HSD and 32% for MS.

HSD stands for High Speed Diesel and MS Motor Spirit.

Segment EBITDA for Q2 FY26 increased by 20.9% YoY to ₹ 15,008 crore ($1.7 billion) with sharp rebound in transportation fuel cracks (up 22-37%) and improvement in polymer margins. "This was, however, partially offset by weak polyester chain deltas. Segment EBITDA was also supported by sustained higher volumes in domestic fuel retailing," the press release added.

Business Environment

• In 2Q FY26, global oil demand rose by 0.75 mb/d Y-o-Y to 104.8 mb/d. Diesel demand was up by 0.2 mb/d Y-o-Y, Jet/Kero demand grew by 0.2 mb/d Y-o-Y and Gasoline demand was nearly flat Y-o-Y.

• Dated Brent averaged $ 69.1/bbl in 2Q FY26, down $ 11.1/bbl (-14%) Y-o-Y. Crude oil benchmarks declined Y-o-Y on higher global supply driven by OPEC+ accelerating its rollback of production cuts and signaling additional output hikes in the coming months.

• Global refinery crude throughput was higher by 2.1 mb/d Y-o-Y at 84.1 mb/d in 2Q FY26.

Oil and Gas (exploration and production) segment

RIL said its Oil & Gas segment's Q2 FY26 revenue was lower by 2.6% YoY at ₹6,058 crore as compared to ₹6,222 crore seen in Q2 FY25, mainly on account of the natural decline of production in KGD6. Further lower realisation for gas price for CBM gas and condensate impacted revenues. This was partly offset by higher KGD6 gas prices and higher volumes of CBM gas.

The company said the average price realised for KGD6 gas was $9.97/MMBTU in Q2 FY26 vis-à-vis $9.55/MMBTU in Q2 FY25. The average price realised for CBM gas was $9.53/MMBTU in Q2 FY26 vis-à-vis $11.4/MMBTU in Q2 FY25.

EBITDA declined by 5.4% on a YoY basis to ₹ 5,002 crore. EBITDA margin dropped by 240 bps YoY to 82.6% during the quarter. The decline in EBITDA was due to lower revenues coupled with higher operating costs due to periodic maintenance activities.