RELIANCE

Q2FY26 Performance: A Summary

(RIL) reported a 17.5% year-on-year rise in consolidated EBITDA to ₹45,885 crore in Q2FY26, supported by strong performances across its key verticals — Oil-to-Chemicals (O2C), Retail, and Jio Platforms. The growth was partly aided by a favourable base effect, especially from the weak O2C performance seen in Q2FY25. Oil-to-Chemicals (O2C) Segment – Key Driver with Mixed Trends The O2C segment remains pivotal for RIL’s earnings outlook, even as Retail and Jio Platforms prepare for separate listings. The segment saw a multi-quarter low EBITDA in Q2FY25, setting up a strong year-on-year recovery this quarter. Sequentially, however, EBITDA per tonne of crude processed fell 5%, despite a 9% rise in crude throughput to 20.8 million tonnes. This mismatch indicates higher input costs and freight charges offsetting the benefit of higher processing volumes, limiting absolute EBITDA growth to just 3% quarter-on-quarter. Upcoming Listings and Valuation Implications: With Jio Platforms and Reliance Retail slated for listing from the first half of 2026 onward, investors may start pricing in a holding company discount for RIL. Post-listing, RIL’s stake in Jio Platforms is expected to reduce from 66% to around 63%, assuming the minimum 2.5% dilution as per SEBI’s revised norms. While the O2C revival offers near-term support, upcoming demergers and listings could redefine RIL’s investment thesis — potentially prompting investors to prefer direct exposure to Jio or Retail once they are listed.