Reliance Q2 results: Net profit jumps 41% YoY to ₹25,548 crore; O2C revenues surge 44% on higher energy prices

Oil-to-telecom conglomerate’s flagship company, Reliance Industries, posted a 41% year-on-year (YoY) growth in consolidated net profits in the second quarter of FY27 on Friday, October 30, with key support from the strong increase in revenues from the Oil to Chemicals (O2C) segment in the period.

NSE filings showed that Reliance Industries’ (RIL) net profit after tax (attributable to owners) surged 41% YoY to ₹25,548 crore in the July to September quarter of FY27, in comparison to ₹18,165 crore in the same period a year earlier, as per the consolidated statements.

The company’s total revenue from core operations advanced 28.5% YoY to ₹3,32,861 crore in the second quarter, from ₹2,58,898 crore in the same quarter of the previous financial year, as per the exchange filing.

Reliance’s overall revenue gains were largely supported by the strong performance in the conglomerate’s oil-to-chemicals business segment, which benefits from the high prices in the market.

In Q2 FY27, the company’s earnings before interest, tax, depreciation and amortisation (EBITDA) or operating profit also increased 24% to ₹62,409 crore, from earlier ₹50,367 crore levels.

However, RIL’s consolidated EBITDA margins remained under pressure, contracting 60 basis points to 17.2% levels in the period under review, from 17.8% in the corresponding period a year ago.

In contrast, the company’s consolidated operating margins improved 30 basis points, and net profit margins rose 40 basis points.

“During 2Q FY27, our businesses delivered a strong performance despite a complex operating environment. Commodity markets remained volatile while geopolitical tensions continued to weigh on global supply chains,” said Mukesh Ambani, Chairman and MD of Reliance Industries.

Reliance O2C revenues jump 44%

The Oil to Chemicals (O2C) segment revenues witnessed a strong 44.2% growth in the September quarter to ₹2,31,601 crore due to elevated crude oil prices in the global market and higher refining margins, in comparison to ₹1,60,558 crore in the same quarter a year earlier.

The management attributed the strong O2C segment performance to the sharp increase in crude and product prices in the quarter.

“Oil to Chemicals (O2C) revenue increase by 44.2% YoY, led by sharp increase in crude and product prices. Crude price for the quarter increased 40.6%, whereas transportation fuel prices were up 50-78% Y-o-Y. Prices for most of the downstream chemical products were up 25-35% Y-o-Y, driven by strong feedstock prices,” said Reliance in its official statement.

On the profitability front, Reliance’s Oil to Chemicals (O2C) segment EBITDA surged 68% year-on-year to ₹25,203 crore levels in the September quarter, from ₹15,008 crore levels in the same period a year earlier.

“Our O2C business delivered a particularly strong performance this quarter, led by tight fuel markets, improved downstream petrochemical deltas and firm domestic demand,” said Mukesh Ambani in the official statement.

Reliance Industries shares are set to be in focus of investors on Monday, November 2, as investors will be reacting to the quarter earnings update which was released after the market operating hours on Friday, October 30.