Reliance Reports Record Q2 Profit on Strong Fuel Margins

Reliance Industries posted a record consolidated profit after tax of ₹29,550 crore for the second quarter of FY27, up 33.8 percent from a year ago. Net profit attributable to owners rose 40 percent to ₹25,548 crore. Total revenue grew 27.8 percent to ₹3,62,268 crore, while EBITDA reached a record ₹62,409 crore, driven by a sharp rebound in the oil-to-chemicals sector.

Oil and Energy Growth

The oil-to-chemicals division led earnings with a 67.9 percent surge in EBITDA to ₹25,203 crore and a 44.2 percent rise in revenue to ₹2,31,601 crore. Global supply disruptions and higher transport fuel cracks boosted performance, with Dated Brent crude averaging $97 per barrel. Meanwhile, the digital services arm Jio added 9 million subscribers and saw average revenue per user climb to ₹219. Retail earnings remained subdued, with EBITDA slipping 13 percent year-on-year to ₹5,780 crore.

Brokerage Outlook

Nuvama Institutional Equities maintained a Buy rating on Reliance shares with a target price of ₹1,703, noting that new energy projects will begin contributing in FY28. Equirus Securities assigned a Long rating with a target price of ₹1,537, though its recommendation is under review. On the Bombay Stock Exchange, Reliance shares closed 0.44 percent lower at ₹1,163.55 ahead of the trading week.

Context

Reliance Industries is India's largest listed company by market capitalisation, spanning diverse sectors from petrochemicals and telecom to retail and upcoming green energy initiatives. Global crude oil price swings and geopolitical tensions in West Asia frequently impact its refining margins and input costs. Brokerage firms closely track these quarterly figures to gauge the broader momentum of India's corporate sector.