Reliance Profit Jumps 41%, Plans ₹15,000 Cr Raise
Imagine a company growing its profits while preparing for its next phase of expansion. That's the story behind Reliance Industries' latest quarterly announcement.
Reliance Industries (NIFTY 500) reported an impressive 41% year-on-year rise in consolidated net profit to ₹25,548 crore** in Q2 FY27, compared with ₹18,165 crore in the same quarter last year.
Revenue from operations also increased 29% to ₹3.32 lakh crore, supported by growth in its Oil-to-Chemicals (O2C) and Jio businesses.
But there's another important development.
The company received board approval to raise up to ₹15,000 crore through Non-Convertible Debentures (NCDs) via private placement.
What does this mean?
NCDs are debt instruments through which companies borrow money from investors and agree to repay it with interest. Unlike shares, they do not convert into equity.
Why is this important?
Strong earnings indicate business growth, while fundraising can provide additional financial resources for business requirements. However, borrowing also creates repayment and interest obligations.
Stock to Study: Reliance Industries Ltd.