Reliance Industries Ltd Q2FY27 Result Fundamental Outlook

Reliance Industries Ltd (RIL) reported a robust financial performance in Q2FY27, with Profit After Tax (PAT) rising 32% YoY to ₹29,250 crore from ₹22,146 crore in the corresponding quarter last year. Gross revenue increased 27.8% YoY to ₹3.62 trillion, compared with ₹2.84 trillion in Q2FY26. The strong performance was primarily driven by the Oil-to-Chemicals (O2C) segment, which benefited from higher crude and petroleum product prices amid geopolitical tensions in West Asia. The O2C segment recorded a 44% YoY increase in revenue to ₹2.32 trillion from ₹1.61 trillion. Segment EBITDA surged 68% YoY to ₹25,203 crore, compared with ₹15,008 crore in the year-ago quarter. Higher transportation fuel cracks, improved petrochemical margins and firm domestic demand supported profitability. Fuel cracks increased 3–3.7 times YoY, while polyester chain margins reached a three-year high. Despite disruptions in the Strait of Hormuz and freight rates surging 15–20 times, RIL maintained high crude processing volumes through diversified sourcing across Latin America, North America and the Mediterranean. The company also optimised export destinations to maximise realisations. However, additional excise duty-related costs and under-recoveries in the Jio-bp business remained profitability constraints. Analyst Outlook: RIL’s Q2FY27 performance highlights strong earnings momentum in its O2C business, supported by favourable refining spreads and improved petrochemical margins. However, the sustainability of these gains will depend on crude price movements, geopolitical developments, freight costs and normalisation of fuel cracks. Investors should also monitor the performance of RIL’s other business segments and consolidated cash flows before assessing the durability of earnings growth. Please Read Disclaimer & Disclosure Carefully:*****