SYNOPSIS: This article provides an overview of Reliance Industries Limited’s consolidated margin performance, reporting a total revenue of Rs. 2,83,548 crore and a consolidated EBITDA of Rs. 50,367 crore, resulting in an EBITDA margin of 17.8 percent for Q2FY26. Check out the full article to understand the segment-wise contributions and detailed financial insights.
Reliance Industries operates across multiple businesses, ranging from traditional energy and petrochemicals to fast-growing consumer-facing segments like telecom and retail. Each of these segments contributes differently to the company’s profitability, with margins varying widely based on capital intensity, pricing power, and competitive dynamics.
While legacy businesses provide scale and steady cash flows, newer digital and consumer platforms are increasingly shaping the margin profile of the group. Understanding which segment generates higher margins helps investors assess where Reliance’s true value creation is coming from and how its earnings mix may evolve over the long term.
Reliance Industries Limited, with a market capitalisation of Rs. 21,06,329.37 crore, closed at Rs. 1,556.50 per equity share, down by 0.11 per cent from its previous day’s close price of Rs. 1,558.20 per equity share.
About the Company
Founded in 1957 and headquartered in Mumbai, India, Reliance Industries Limited is a diversified conglomerate with operations across energy, oil and chemicals, retail, and digital services in India and globally. Its businesses span refining, petrochemicals, polymers, textiles, elastomers, bioenergy, oil and gas exploration, large-format and online retail, media and entertainment, and digital connectivity and platforms.
Financial Outlook
Revenue in Q2FY26 stood at Rs. 2,54,623 crore, recording a 10 percent YoY growth compared with Rs. 2,31,535 crore in Q2FY25, reflecting steady business expansion. On a QoQ basis, revenue increased 4.5 percent from Rs. 2,43,632 crore in Q1FY26, indicating improved sequential momentum.
On the profitability front, EBITDA came in at Rs. 45,885 crore, up 17.5 percent YoY from Rs. 39,058 crore, and 6.9 percent QoQ from Rs. 42,905 crore, pointing to stronger operating leverage. Profit after tax was Rs. 22,092 crore, rising 14.3 percent YoY from Rs. 19,323 crore, but declining 28.2 percent QoQ from Rs. 30,783 crore, suggesting normalization or one-off impacts affecting sequential earnings despite healthy annual growth.
Over the past five years, the company has demonstrated strong growth, achieving a revenue CAGR of 10 percent, a profit CAGR of 10 percent and a price CAGR of 11 percent, reflecting both its operational performance and market confidence.
A return on equity (ROE) of about 8.4 per cent a return on capital employed (ROCE) of about 9.69 percent and debt to equity ratio at 0.43, demonstrate the company’s financial position. At the moment, the company’s P/E ratio is 27.5x higher than its industry P/E ratio of 10.8x.
Segment-wise Margin Comparison
In Q2 FY26, Reliance Industries Limited posted total revenue of Rs. 2,83,548 crore and EBITDA of Rs. 50,367 crore, resulting in a consolidated EBITDA margin of about 17.8 percent.
Jio Platforms: In Q2FY26, Jio Platforms reported revenue of Rs. 36,332 crore and EBITDA of Rs. 18,757 crore, resulting in a strong EBITDA margin of 51.6 percent. The high margin reflects the digital nature of the business, strong operating leverage, and improving monetisation across mobility and digital services, making Jio one of Reliance’s most profitable growth segments.
Retail: Reliance Retail generated a Net revenue of Rs. 79,128 crore during the quarter, with EBITDA of Rs. 6,624 crore, translating into an EBITDA margin of 8.4 percent. Despite being one of the largest revenue contributors, margins remain modest due to intense competition, expansion costs, and the inherently low-margin, high-volume nature of the retail business.
JioStar: JioStar posted revenue of Rs. 6,179 crore and EBITDA of Rs. 1,738 crore in Q2FY26, delivering a healthy EBITDA margin of 28.1 percent. The segment benefits from content-led monetisation and platform synergies, placing it between telecom and retail in terms of profitability.
Exploration and Production: The Exploration and Production segment reported revenue of Rs. 6,058 crore and EBITDA of Rs. 5,002 crore, resulting in an exceptionally high EBITDA margin of 82.6 percent. This reflects low operating costs and strong realisations, making E&P the most margin-accretive business within Reliance Industries.
Oil to Chemicals: The Oil-to-Chemicals segment remained the largest by revenue at Rs. 1,60,558 crore, with EBITDA of Rs. 15,008 crore, leading to an EBITDA margin of 9.3 percent. While it provides scale and stable cash flows, margins are constrained by cyclical refining and petrochemical spreads.
Among all segments in Q2FY26, Exploration and Production delivers the highest EBITDA margin at 82.6 percent, followed by Jio Platforms at 51.6 percent, highlighting a clear shift where capital-efficient energy assets and digital businesses drive profitability, while retail and O2C primarily contribute through scale rather than margins.
Other Updates
Reliance Industries, led by Mukesh Ambani, is planning a phased listing of its two largest consumer-facing businesses which are Reliance Jio and Reliance Retail, to unlock value and simplify its group structure. Together, these back-to-back mega listings mark a strategic shift by Reliance to monetise its fast-growing digital and retail platforms while retaining long-term control and strengthening its balance sheet.
Reliance Jio IPO
Reliance Jio Platforms is preparing for a potential IPO that could become India’s largest ever, with an estimated valuation of up to $170 billion. The listing, expected in the first half of 2026, may involve selling around 2.5 percent stake, raising nearly $4.3 billion, while Reliance Industries retains majority control. The IPO is aimed at unlocking value from Jio’s fast-growing telecom and digital business, which has already surpassed rivals in scale and is seen as a key long-term growth driver for the Reliance group.
Reliance Retail IPO
Reliance Retail is expected to be the second major IPO in Reliance Industries Limited’s roadmap, likely around 2028, following Jio’s proposed 2026 listing. With nearly 19,800 stores, quarterly revenue of about Rs. 90,000 crore, and profits exceeding Rs. 3,400 crore, the business has built an unmatched scale across grocery, fashion, and electronics. Ahead of the IPO, Reliance Retail is focusing on disciplined expansion, margin protection, and strengthening quick commerce and omni-channel capabilities, positioning itself as a more efficient and investor-ready company.
Conclusion
Reliance Industries Limited’s margin profile clearly shows that profitability is no longer driven by scale alone, but by a mix of capital efficiency and business model strength. Reliance Industries earns its highest margins from Exploration & Production and Jio Platforms, while Retail and Oil-to-Chemicals mainly add scale rather than high profitability. This shows that Reliance’s future profit growth will be driven more by digital and energy assets, with traditional businesses supporting stability and cash flows.
