Reliance Industries Limited (RIL), India’s largest conglomerate, made headlines again as its shares soared by 4% following the release of its strong Q2 FY26 results. The results showcased robust performance across multiple business segments, including retail, oil-to-chemicals (O2C), and digital services (Jio). With a 14.3% rise in quarterly profits, analysts from leading global brokerages remain optimistic about the company’s growth outlook, emphasizing its diversification, expansion in new energy ventures, and expected tariff revisions in Jio.
The stock surge not only reflects investor confidence but also highlights the company’s strong fundamentals and forward-looking strategies. Let’s dive deeper into what’s driving this rally, the analyst sentiment, and what it means for investors in the long term.
Overview: Reliance Industries’ Q2 Performance Snapshot
Reliance Industries reported a consolidated net profit of ₹22,092 crore (pre-minority interest) for the quarter ended September 2025, marking a 14.3% year-on-year growth. The company’s total capital expenditure for the quarter stood at ₹40,000 crore, with net debt levels remaining stable — a sign of financial discipline amid aggressive expansion.
Below is a quick breakdown of the company’s major performance highlights:
| Parameter | Q2 FY26 Performance | YoY Change |
|---|---|---|
| Net Profit | ₹22,092 crore | +14.3% |
| Capex | ₹40,000 crore | Stable |
| Net Debt | Flat | — |
| Stock Price (NSE) | ₹1,467.9 | +4% |
| High of the Day | ₹1,473.8 | — |
Key Drivers of Reliance Industries’ Q2 Growth
Reliance Industries’ growth story continues to be anchored in its diversified business portfolio, which includes energy, retail, digital, and now, new-energy ventures. Let’s examine the major growth engines that fueled the Q2 performance.
1. Retail: Continued Expansion and Profit Growth
Reliance Retail delivered another stellar quarter, reaffirming its position as India’s largest retailer. Increased footfalls, growing digital sales, and strong brand partnerships drove revenue and profit growth.
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Expansion of new stores across metros and tier-2 cities.
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Strong performance in grocery, electronics, and fashion categories.
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Improved operating margins supported by cost efficiency and scale.
Nomura highlighted that Reliance’s retail segment outperformed expectations, prompting the brokerage to raise its FY26 and FY27 EBITDA estimates by 4% and 12%, respectively.
2. Oil-to-Chemicals (O2C): Stable and Resilient Core Business
Despite global oil price volatility, Reliance’s O2C segment remained resilient. The segment’s performance benefited from steady refining margins, improved product mix, and optimized operations.
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Stable demand for petrochemical products.
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Better realization from refined petroleum exports.
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Efficiency gains through advanced process integration.
This stability in the O2C segment provided a solid foundation for Reliance’s overall profitability, especially as it transitions towards cleaner energy sources.
3. Jio Platforms: Strong Subscriber Base and Upcoming Tariff Hike
Reliance Jio, the digital arm of RIL, continued to dominate India’s telecom sector with over 470 million subscribers. Its profitability remained strong, thanks to efficient cost management and robust data consumption trends.
Brokerages see Jio’s next growth trigger in a potential tariff hike, expected in the coming quarters, which could significantly boost margins and ARPU (Average Revenue Per User).
In addition, analysts anticipate a possible Jio IPO by the first half of FY26, which could unlock massive shareholder value.
4. New Energy Ventures: Laying the Foundation for the Future
Reliance Industries is steadily moving towards its new-energy mission, focusing on renewable energy, green hydrogen, and solar manufacturing.
The company has announced major investments in gigafactories, targeting large-scale battery production, solar panel manufacturing, and hydrogen fuel development.
Brokerages like Morgan Stanley and Kotak Institutional Equities consider this transition a key long-term growth driver, aligning RIL with India’s clean energy ambitions and global sustainability trends.
Analyst Sentiment: Brokerages Remain Bullish
Top brokerage firms are maintaining a positive outlook on Reliance Industries following its Q2 results. The reasons include robust retail growth, balanced performance across segments, and promising future catalysts.
Nomura: “Buy” Rating with ₹1,700 Target
Nomura reiterated its Buy rating on RIL, highlighting strong retail performance and rising profitability in digital services. The firm raised its FY26 and FY27 EBITDA forecasts by 4% and 12%, respectively. It expects three key growth triggers:
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Scale-up of new energy business
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Jio tariff hike
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Potential Jio IPO
Morgan Stanley: “Overweight” Outlook
Morgan Stanley emphasized Reliance’s strategic strength and diversified portfolio. It noted that the company is “well-positioned for sustainable multi-year growth,” particularly with the shift toward clean energy and digital transformation.
Kotak Institutional Equities: Positive Long-Term View
Kotak praised the company’s ability to balance capex and maintain steady debt levels while investing aggressively in high-growth areas. Its analysts project double-digit profit growth over the next two fiscal years.
JPMorgan & Macquarie: Optimistic but Cautious
Both JPMorgan and Macquarie expressed optimism about RIL’s growth trajectory but warned about potential global macro risks that could impact the O2C margins. Nonetheless, they maintained their positive ratings, citing consistent execution and innovation.
Market Reaction: Stock Rallies After Q2 Results
Reliance’s share price jumped 4% intraday, reaching a high of ₹1,473.8 on the NSE before closing at ₹1,467.9. The surge reflected investor enthusiasm about the company’s earnings strength and the bullish sentiment from brokerages.
The stock has been on a steady uptrend, supported by:
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Strong quarterly results.
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Anticipation of Jio tariff revision.
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Positive outlook for retail expansion.
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Increased focus on green energy.
Why Reliance Industries Q2 Results Matter for Investors
Reliance Industries’ Q2 results mark an important milestone in its multi-sector evolution. The performance not only reaffirms RIL’s dominance in India’s corporate ecosystem but also sets the stage for future growth across new domains.
Here’s why these results hold major significance:
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Sustained Profitability:
A 14.3% rise in profit demonstrates financial resilience across volatile global conditions. -
Balanced Growth:
Each of RIL’s major verticals — O2C, Retail, and Digital — contributed meaningfully to the quarter’s performance. -
Future Readiness:
The company’s strategic pivot to clean energy positions it strongly for the next decade. -
Investor Confidence:
With major brokerages issuing positive outlooks, market sentiment remains robust.
Reliance Industries at a Glance: Key Highlights Table
| Segment | Q2 FY26 Highlights | Growth Outlook |
|---|---|---|
| Oil-to-Chemicals (O2C) | Stable refining margins and demand | Moderate |
| Retail | Strong revenue growth, expanding store base | High |
| Jio Digital Services | Robust profitability, upcoming tariff hike | Very High |
| New Energy | Investments in solar and hydrogen | Long-Term |
| Net Profit | ₹22,092 crore (+14.3%) | Consistent |
| Target Price (Nomura) | ₹1,700 | Positive |
Future Outlook: What’s Next for Reliance Industries
Reliance’s roadmap ahead looks promising and well-diversified. The company’s focus areas include:
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Scaling up its new energy ecosystem to lead India’s clean energy revolution.
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Expanding retail footprint through omni-channel integration and digital commerce.
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Boosting telecom profitability via ARPU growth and new service monetization.
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Potential demergers and IPOs (especially Jio and Retail) that could unlock significant shareholder value.
Analysts believe that Reliance Industries’ consistent performance across sectors ensures stability even in uncertain economic environments.
Expert Opinion: Long-Term Growth Drivers
Industry experts suggest that Reliance’s transformation from an oil-driven enterprise to a tech, retail, and energy giant has positioned it uniquely for sustained growth.
Its investment in green energy, combined with the digital expansion of Jio and retail, gives it a significant competitive edge.
Furthermore, maintaining flat debt levels despite high capex underscores RIL’s strong balance sheet management, making it one of the most reliable blue-chip stocks in India.
Frequently Asked Questions (FAQs)
1. What caused Reliance Industries’ shares to rise by 4%?
The surge followed strong Q2 results showing 14.3% profit growth, driven by retail, O2C, and digital segments.
2. What was Reliance Industries’ profit for Q2 FY26?
RIL reported a net profit of ₹22,092 crore for Q2 FY26, reflecting a 14.3% year-on-year increase.
3. Which brokerages are bullish on Reliance?
Brokerages like Nomura, Morgan Stanley, Kotak, JPMorgan, and Macquarie have maintained positive or buy ratings on RIL.
4. What are the main growth triggers for Reliance Industries?
The three key triggers are: Jio tariff hike, scale-up of the new energy business, and the potential Jio IPO.
5. Is Reliance Industries focusing on renewable energy?
Yes, RIL is investing heavily in solar, hydrogen, and battery manufacturing as part of its new-energy mission.
6. What is the target price of Reliance Industries stock?
Nomura has set a target price of ₹1,700 per share, indicating potential upside from current levels.
