Key Points:
- Shares Rise: RIL shares gained 1%, reaching the highest level since Sept. 18.
- Earnings Forecast: Q2FY26 EBITDA expected to grow ~3%, led by Jio and O2C business.
- Growth Drivers: Telecom and retail segments to drive future earnings, aided by GST cuts and Jio IPO plans.
Shares of Reliance Industries Ltd. (RIL) rose over 1 percent on Friday ahead of the company’s Reliance Industries Q2FY26 results. The board of directors is set to meet later in the day to consider and approve the results.
RIL shares climbed as much as 1.3 percent to ₹1,417.8 on the National Stock Exchange, marking the strongest intraday rise since Oct. 16. At 11:55 a.m., the stock traded 1.3 percent higher at ₹1,416.4, outperforming the Nifty 50 index, which gained 0.6 percent during the same period.
The company’s stock has risen for the second consecutive session and is currently trading at its highest level since Sept. 18. So far this year, RIL shares have advanced 16.5 percent, compared with an 8.8 percent gain in the Nifty 50 benchmark. RIL’s market capitalization stands at ₹19.16 trillion, maintaining its position as India’s largest listed company.
Modest earnings growth expected
Analysts expect RIL’s consolidated earnings before interest, tax, depreciation, and amortisation (Ebitda) to grow around 3 percent quarter-on-quarter in Reliance Industries Q2FY26 results. This modest growth is projected despite weaker performance in its oil and gas upstream segment, according to consensus estimates.
Stronger results from the company’s telecom arm Reliance Jio and its oil-to-chemical (O2C) business are likely to offset the decline in upstream operations.
In the first quarter of FY26, RIL reported consolidated revenue of ₹2.43 trillion, Ebitda of ₹42,905 crore, and a net profit of ₹30,681 crore. These figures were up from ₹2.31 trillion in revenue, ₹39,058 crore in Ebitda, and ₹19,101 crore in profit in the same quarter last fiscal year.
Global brokerage Nomura expects RIL’s Q2FY26 Ebitda to rise 3 percent to about ₹44,400 crore, supported by steady performance from Reliance Jio and the O2C business. Nomura added that the retail division may remain subdued this quarter, while upstream operations could see a slight decline, as reflected in the Reliance Industries Q2FY26 results forecasts.
Consumer businesses to lead future growth
A recent JP Morgan report noted that RIL’s consumer-focused segments—telecom and retail—are expected to drive nearly all of the group’s earnings growth in the next few years.
“Reliance Retail and telecom now account for 54 percent of total FY25 consolidated Ebitda. In our estimates, they will account for almost all of the net Ebitda growth over the next three years,” JP Morgan said in a Sept. 30 report.
The report also highlighted that Reliance Retail’s revenues could benefit from recent GST rate cuts, while a tariff hike at Reliance Jio is anticipated ahead of a potential public offering.
A month after Chairman Mukesh Ambani confirmed plans to list the telecom business, JP Morgan valued Reliance Retail at $143 billion and Reliance Jio Infocomm at $135 billion.
As investors await the Reliance Industries Q2FY26 results, analysts believe RIL’s continued focus on consumer and digital segments could offset cyclical challenges in its traditional energy business. The company’s diversified portfolio across retail, telecom, and energy remains a key factor in sustaining its long-term growth trajectory.
RIL’s earnings announcement later today will provide further clarity on the balance between core energy operations and expanding consumer businesses, shaping investor sentiment in the coming quarters.
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