RIL Q2 Profit Jumps 32% to ₹29,250 Crore, O2C Ebitda Soars 68%

Reliance Industries Ltd (RIL) reported a 32 per cent jump in profit after tax (PAT) for the second quarter of 2026-27 (Q2FY27), reaching ₹29,250 crore, up from ₹22,146 crore in the year-ago period. Gross revenue for Mukesh Ambani-owned RIL also rose by 27.8 per cent to ₹3.62 trillion from ₹2.84 trillion during the same period, primarily driven by a robust performance in the oil-to-chemicals (O2C) portfolio amidst a spike in crude and product prices, influenced by the West Asia war.

The O2C segment, RIL's largest business by revenue, saw its revenue increase by 44 per cent year-on-year (Y-o-Y) to ₹2.32 trillion during Q2FY27. Mukesh Ambani stated, "Our O2C business delivered a particularly strong performance this quarter, led by tight fuel markets, improved downstream petrochemical deltas and firm domestic demand." He added that the company's ability to optimize feedstock sourcing, product placement, and operations across the value chain enabled improved margin capture.

Crude prices for the quarter increased by 40 per cent due to the West Asia crisis, while transportation fuel prices surged by 50-78 per cent Y-o-Y. Prices for most downstream chemical products also rose by 25-35 per cent Y-o-Y, driven by strong feedstock prices. The O2C segment's earnings before interest, taxes, depreciation, and amortisation (Ebitda) sharply increased by 68 per cent Y-o-Y to ₹25,203 crore, from ₹15,008 crore in the prior year, attributed to a surge in transportation fuel cracks and improved downstream chemical margins.

RIL further noted that fuel cracks were up 3-3.7 times Y-o-Y, reaching historic highs during the quarter, and polyester chain margins recovered sharply to a three-year high, led by paraxylene and purified terephthalic acid deltas. However, earnings growth was constrained by continued Special Additional Excise Duty (SAED)-related costs and under-recoveries in the Jio-bp business. Despite disruptions in the Strait of Hormuz, RIL achieved high crude runs by sourcing from various regions, including Latin America, North America, and the Mediterranean, which helped limit the impact of a wider Arab Gulf crude differential and a 15-20 times surge in freight rates.

Exports were redirected to the highest-netback markets, with light distillates going to East and South Africa, and middle distillates to Europe, Latin America, and West Africa. The combined petrol and diesel volumes at Jio-bp, the group’s fuel retail venture, grew 4.2 per cent Y-o-Y in Q2 to 1.83 million kilolitre (kl) due to sustained high demand and better retailing. Conversely, the oil & gas (exploration and production) segment's Q2 revenue dropped by 0.6 per cent to ₹6,020 crore, mainly due to lower production and gas price realization from the KG-D6 block, though this was partially offset by higher condensate prices and improved coal bed methane (CBM) price and volumes.

Production from the flagship KG-D6 field decreased by 9 per cent to 57.8 billion cubic feet equivalent (BCFe), while CBM production grew by 21.4 per cent to 3.4 BCFe. The Ebitda for this segment saw a 2 per cent drop to ₹4,901 crore amid lower revenue and higher central government levies, with favorable exchange rate movements providing some support. RIL's capital expenditure for Q2FY27 stood at ₹38,153 crore, driven largely by investments in O2C and new energy projects, as well as expanding consumer business infrastructure and distribution reach.

What to watch: The continued performance of RIL's O2C and new energy projects.

Editor's note: The draft effectively integrates all financial figures and contextual details provided in the source material, including specific operational insights and segmental performance.