RELIANCE

’s Q3 Shows Strength in Core, Signals FMCG Ambitions

(RIL) posted a strong Q3FY26 performance, with EBITDA from its traditional businesses—Oil-to-Chemicals (O2C) and Exploration & Production (E&P)—rising to ₹21,364 crore, up 7% YoY. While refining capacity and gas output remain flat, the company is increasingly focused on new growth avenues, particularly FMCG, which is being positioned as a long-term strategic play alongside its new energy ambitions. Traditional Business Rebound - Combined EBITDA from O2C + E&P rose steadily from ₹18,303 crore in Q1FY25 to ₹21,364 crore in Q3FY26. - YoY growth peaked at 20% in Q2FY26, moderating to 7% in Q3FY26. - Despite no expansion in refining capacity and falling gas output, core businesses remain profitable. Strategic Reset and Capex Priorities - RIL’s new energy business is still in early stages, with scale-up expected over the medium term. - The company is not expanding refining, indicating a shift in capital allocation. - Focus is shifting toward consumer-facing businesses, especially FMCG. FMCG as a Long-Term Bet - FMCG is being positioned as a material growth driver, with potential to complement retail and digital platforms. - RIL’s distribution reach and brand-building capabilities offer a strong foundation. - Management views FMCG as a multi-year opportunity, especially as traditional segments mature. Earnings Quality and Diversification - Diversification into FMCG and new energy expected to reduce earnings volatility. - Consumer businesses offer higher margin stability and recurring revenue potential. - Strategic shift aligns with broader consumption trends in India. Outlook and Investor Implications - RIL’s ability to balance core profitability with new growth bets makes it a compelling long-term story. - FMCG could emerge as a valuation re-rating catalyst, especially as execution scales. - Investors may view current performance as a foundation for future diversification-led upside.