Reliance Industries shares rally 3% on impressive Q2 numbers; analysts say stock re-rating is on the cards

The stock rallied as much as 3% to ₹1,460.60 on the NSE.

What analysts say

Analysts said that growth has returned across all key business segments after a challenging year.

According to news reports, Morgan Stanley noted that RIL's robust 22% year-on-year (YoY) growth in fashion revenue, along with China's anti-involution policies impacting chemicals, solar, and refining, and increasing AI adoption, could drive future earnings upgrades.

The global financial services firm added that the positive momentum in consumer retail and fuel refining sets up a strong December 2025 quarter, while new energy and AI initiatives are expected to contribute to the next $50 billion in value creation.

It stated "RIL's earnings should get investor confidence back; re-rating is ahead as consumer retail is turning around and beat estimates".

Besides, Macquarie Research highlighted retail growth of 19% YoY, driven by broad-based performance across verticals and stable margins despite more than doubling of customer growth in JioMart, as per an ANI report.

Hyper-local commerce scaled up 3x YoY in daily orders, while Jio added over 8 million subscribers in Q2, leading to a total of 506 million.

The investment firm also noted progress in RIL's AI ecosystem and new energy projects, including Solar PV and Battery Energy Storage giga-factories, on track.

With growth returning across segments and strategic initiatives gaining traction, analysts expect RIL to continue driving earnings upgrades and value creation, the ANI report added.

Apart from key numbers, other key announcements are also expected to influence investor sentiment.

One of them is that RIL will commence solar power generation in the first half of the next financial year from its mega renewable energy project in Kutch, Gujarat, a site spread over an area nearly three times the size of Singapore.

The project is part of the oil-to-telecom conglomerate's broader push towards clean energy and achieving net-zero carbon emissions by 2035.

In an investor presentation post announcement of its second quarter earnings, Reliance said project development across the 5,50,000-acre site in Kutch is progressing well, with engineering and feasibility studies completed, and the site is currently in various stages of land development.

"Expected to start commissioning solar generation during the first half of the next year for captive requirements plus green fuels production," it said.

Four years ago, Reliance Chairman and Managing Director Mukesh Ambani announced a USD 10 billion investment in a 'new energy' business. That was seen as a notable change of tide, given the conglomerate's mega-scale petroleum refining operation that Ambani spearheaded back in the 1990s.

With that, Reliance began work on a new integrated renewable energy manufacturing hub named after the group's founder – the Dhirubhai Ambani Green Energy Giga Complex.

JioStar earnings

Media and entertainment platform JioStar on Friday reported revenues of ₹7,232 crore and a profit after tax (PAT) of ₹1,322 crore in the September quarter of the ongoing fiscal.

Revenue from operations of JioStar, the joint venture created after the merger of the media business of Reliance and the India business of global media giant Walt Disney, was at ₹7,232 crore.

Its EBITDA (pre-tax profit) was at ₹1,738 crore with an industry-leading margin of 28.1%.

"The network reached over 830 million viewers, delivering over 60 billion hours of watch time on television," said an earnings statement issued by Reliance Industries.

JioStar's revenue in the first half of FY26 was at ₹18,454 crore, and profit after tax stood at ₹1,903 crore.

Reliance Industries (RIL), the Walt Disney Company and Viacom 18 Media Private had formally announced the merger of their TV and digital platforms on November 14, 2024.

JioHotstar, which was launched after the merger of two leading OTT platforms, JioCinema and Disney+ Hotstar, on February 14, 2025, averaged 400 million MAUs (monthly active users) in the September quarter. This was led by "robust performance of both sports and entertainment properties", it said.

RIL: Q2 earnings

The oil-to-telecom behemoth, on Friday post-market hours, reported a 9.6% year-on-year (YoY) rise in net profit for the September quarter, driven by strong performance in its consumer-facing retail and telecom businesses and a recovery in its core oil-to-chemicals segment.

However, higher inventory losses weighed on overall earnings, leading to a sequential decline compared to the previous quarter.

The conglomerate posted a consolidated net profit of ₹18,165 crore in July-September – the second quarter of the April 2025 to March 2026 fiscal year (FY26) – higher than the ₹16,563 crore seen in the same period a year back, the company said in a statement.

Profit, however, sequentially fell 33% when compared with ₹26,994 crore in the April-July quarter.

New customer additions and higher per-user income, together with its wireless broadband services becoming the world's largest, helped post a 13% year-on-year jump in telecom earnings, and improving the store operating matrix helped retail earnings soar 22%. Improved refining margins and the highest-ever crude oil processing helped the O2C business.

But a drop in oil prices meant that the value of carrying inventory fell sequentially in Q2. Inventory loss doubled to ₹8,421 crore when compared with Q1.

The profit before tax (EBITDA) rose 14.6% YoY to ₹50,367 crore. This was despite a 13.5% rise in finance cost due to higher debt (₹3.48 lakh crore as of September 30, 2025, compared to ₹3.38 lakh crore on June 30). Also, depreciation increased by 12% YoY to ₹14,416 crore.

RIL Q2: Jio Platforms numbers

Jio Platforms Ltd, the subsidiary that houses the telecom and digital businesses, saw profit rise by 13% to ₹7,379 crore in Q2.

All four key parameters – data minute usage, data consumed, average per-user earnings and number of subscribers – grew. The customer base rose to 506.4 million from 498.1 million in April-June. Average revenue per user rose to ₹211.4 from ₹208.8 in the preceding quarter.

Its wireless broadband service, JioAirFibre, amassed a subscriber base of 9.5 million – the highest by any telecom operator in the world. Reliance said it is adding over 1 million new homes each month.

The retail arm, Reliance Retail Ventures Ltd, posted a 22% YoY rise in profit to ₹3,457 crore. While it opened 229 new stores to take the number to 19,821, the area operated was almost the same at 77.8 million square feet as the company continued to rationalise operations to maximise operating margin.

The oil-to-chemical business, which houses the company's twin refineries at Jamnagar in Gujarat and petrochemical plants, saw EBITDA rise 21% to ₹15,008 crore in Q2. It was up sequentially as well due to higher product cracks, which helped improve refining margins. Also helping was the highest quarterly refining throughput of 20.8 million tonnes.