Mumbai: Reliance Industries Ltd (RIL) posted a record consolidated quarterly profit of Rs 30,783 crore in Q1 FY26, a 76.5 percent year-on-year (YoY) increase, driven by margin expansion in its key energy businesses despite softer volumes. However, performance diverged across segments: oil-to-chemicals (O2C) earnings rose, while the oil and gas business saw a decline in both revenue and profitability.
Commenting on the results, Mukesh D Ambani, Chairman and Managing Director, Reliance Industries Limited said, “Reliance has begun FY26 with a robust, all-round operational and financial performance. Consolidated EBITDA for 1Q FY26 improved strongly from a year-ago period, despite significant volatility in global macros. During the quarter, energy markets encountered heightened uncertainty, with sharp fluctuations in crude prices. Our O2C business delivered strong growth, with thrust on domestic demand fulfillment and offering value-added solutions through Jio-bp network. Performance was supported by improvement in fuel and downstream product margins. Natural decline in KGD6 gas production resulted in marginally lower EBITDA for Oil & Gas segment."
The O2C segment, RIL’s largest energy business, reported Rs 14,511 crore in consolidated EBITDA in Q1 FY26 — up 11 percent YoY from Rs 13,093 crore and only marginally down from Rs 15,080 crore in the previous quarter (Q4 FY25). The company attributed the rise to improved margins in transportation fuels, polypropylene (PP), and polyvinyl chloride (PVC), as well as stronger retail fuel volumes through Jio-bp outlets.
However, segment revenue dipped 1.5 percent YoY to Rs 154,804 crore, compared to Rs 1,57,133 crore a year earlier. This decline was due to lower crude prices and a planned shutdown impacting volumes. Sequentially, revenue dropped 6 percent from Rs 164,613 crore in Q4 FY25.
On a standalone basis, RIL’s revenue from refining and petrochemicals businesses — which form the bulk of O2C — was Rs 1,29,585 crore, down 4.6 percent YoY and 6.9 percent sequentially.
The upstream oil and gas segment, which includes KG-D6 and CBM assets, saw EBITDA fall 4.1 percent YoY to Rs 4,996 crore in Q1 FY26 from Rs 5,210 crore a year ago. The company attributed the decline to lower gas sales volumes due to natural decline in KG-D6 production, alongside weaker CBM gas prices and crude realisations.
Segment revenue stood at Rs 6,103 crore, down 1.2 percent YoY and 5.2 percent sequentially, from Rs 6,179 crore in Q1 FY25 and Rs 6,440 crore in Q4 FY25, respectively.
Despite the decline in volumes, improved realisation from KG-D6 gas partially offset the fall. The company also highlighted increased maintenance activity, which raised operating costs during the quarter.
While Reliance’s financial disclosures did not provide a separate revenue line for its new energy business, the company stated in a presentation that its giga-factory projects for solar, batteries, and green hydrogen remain on track to be commissioned over the next four to six quarters. Once operational, the business is expected to be self-funded through offtake partnerships and external financing.
On a consolidated level, energy segments contributed materially to the company’s overall EBITDA of Rs 58,024 crore, up 35.7 percent YoY. The combined contribution of O2C and oil and gas was Rs 19,507 crore — or 33.6 percent of the total group EBITDA in Q1 FY26.
Net profit rose sharply due to a one-time gain of Rs 8,924 crore from the sale of listed investments (Asian Paints), but even after excluding this, profit after tax rose 25 percent YoY.