Reliance Industries: Strong FY27 Start Driven by O2C & Jio

Reliance Industries has commenced FY27 on a strong footing, delivering robust financial results across its diverse business segments. The conglomerate reported a significant increase in revenue and recurring profitability for the first quarter.

Q1 FY27 Financial Highlights

Reliance’s overall performance showcased impressive growth:

• Revenue surged by 24.5% year-on-year, reaching ₹3.4 lakh crore.

• Recurring EBITDA rose 10.1% to a record ₹54,067 crore.

• Recurring profit grew 6.1% to ₹23,196 crore.

While a reported 25% overall profit decline might seem concerning, it was attributed to a one-time gain in the prior year, indicating a stronger underlying business performance.

Oil to Chemical (O2C) Segment Delivers Highest EBITDA

The Oil to Chemical (O2C) segment was a major growth driver, with revenue climbing 30.4%. Its EBITDA increased by 17.2% to ₹17,010 crore, marking its highest quarterly EBITDA in four years.

This robust performance occurred despite operational challenges like the closure of the Strait of Hormuz and escalating freight rates. Reliance strategically navigated these hurdles by switching to cheaper ethane feedstock and redirecting exports to more lucrative Asian markets.

Reliance Retail Navigates Investments with Strong Online Growth

Reliance Retail reported a 7.4% year-on-year increase in gross revenue, surpassing ₹90,400 crore. However, its net profit decreased by 14.1%, primarily due to significant investments in quick-commerce dark stores and higher depreciation expenses.

Despite the profit dip, the grocery business saw a 116% surge in average daily online orders. The electronics sector achieved an impressive 16% like-for-like growth, and Reliance successfully relaunched the fast-fashion platform Shein in India.

After adjusting for the demerger of its consumer brands business, Reliance Retail’s underlying revenue growth stood at 11.6%.

Jio Platforms Sustains ARPU Growth Without Tariff Hikes

Jio Platforms posted revenue of ₹45,961 crore, with its Profit After Tax (PAT) rising 9.2% to ₹7,764 crore. The Average Revenue Per User (ARPU) grew 3% to ₹215.6, driven by customer upgrades to higher-tier 5G plans and increased digital ecosystem consumption.

Notably, this ARPU growth was achieved without any tariff hikes. JioAirFiber, the fixed wireless access home broadband service, now serves approximately 14 million homes and accounts for 78% of India’s new fixed-wireless connections.

Oil and Gas Segment Faces Production Declines Amidst Strong Margins

The Oil and Gas mining business generated revenue of ₹6,298 crore, a 3.2% increase from the previous year, maintaining an exceptional operating margin of 79%.

However, gas production from the KG-D6 block declined by 7.4% due to natural pressure depletion, and the government reduced the price ceiling for deepwater gas. Higher condensate prices and revenue from coal-bed methane operations partially mitigated this impact.

New Energy Focuses on High-Efficiency Solar Technology

In the New Energy sector, Reliance is making significant advancements in heterojunction technology (HJT) for solar cells. HJT offers superior efficiency, reaching up to 25.6%, and better performance in hot climates compared to older technologies.

Reliance Industries’ Q1 FY27 performance underscores a strategic ability to drive growth in key sectors like O2C and digital services, even while navigating challenges in retail and traditional energy. The focus on high-efficiency new energy solutions also signals future strategic direction.