Reliance industries rebounds: Retail, Jio, and new energy drive gains

Reliance Industries Ltd (RIL), India’s largest private sector conglomerate, reported strong financial results for Q2FY26, demonstrating recovery and growth across its diversified business portfolio. Analysts and brokerages have revised their outlooks upward, reflecting renewed investor confidence and the potential for a stock re-rating. RIL is a diversified conglomerate with operations spanning oil-to-chemicals (O2C), retail, digital services, exploration & production (E&P), and new energy initiatives. The company’s latest quarterly results underscore its ability to integrate technology, consumer-focused businesses, and sustainable energy strategies to drive growth. Key highlights from Q2FY26 include consolidated EBITDA of Rs 459 billion, which was 3.2% above JM Financial estimates and 1.8% above consensus, up 6.9% quarter-on-quarter (QoQ) and 17.5% year-on-year (YoY). The retail segment posted EBITDA of Rs 68.2 billion, up 16.3% YoY, led by Grocery and Fashion & Lifestyle growth of 22–23% YoY, while hyper-local commerce operations such as JioMart scaled threefold in daily orders. The digital business, Jio, delivered EBITDA of Rs 188.8 billion, supported by 8.3 million new subscribers and higher ARPU at Rs 211.4. Other segments such as O2C and E&P largely met expectations, and new energy and AI initiatives are progressing as planned.

RIL’s performance marks a significant improvement over the previous year. Fashion & Lifestyle growth of 22% YoY indicates a strong rebound after last year’s sluggish consumer demand. Consolidated EBITDA increased 17.5% YoY, reflecting resilience across core and emerging business segments. Jio’s subscriber additions outpaced last year’s growth, showing strong adoption and monetization, while retail growth was broader-based across all verticals compared to selective performance in Q2FY25. This performance demonstrates RIL’s recovery from prior challenges and its ability to capitalize on consumer trends and technology adoption.

Analysts predict sustained growth and value creation for RIL over the medium term. EPS is expected to grow at 15–20% over the next 3–5 years, and brokerages have raised 12-month target prices to Rs 1,650–1,700, reflecting expectations of a potential re-rating. Continued retail momentum, especially in hyper-local commerce, is expected to drive revenue and margins, while Jio’s AI adoption and ecosystem development could further strengthen subscriber engagement and ARPU. New energy initiatives, including solar PV and battery storage projects, are on track and expected to contribute to the next USD 50 billion in value creation.

Brokerage and analyst commentary reinforces this optimism. Morgan Stanley stated that “RIL’s robust fashion revenue growth, AI adoption, and stabilizing consumer retail and fuel refining should drive future earnings upgrades.” JM Financial noted that “industry-leading capabilities across businesses are likely to drive a 15–20% EPS CAGR over the next 3–5 years,” while Macquarie Research highlighted that “retail growth of 19% YoY, strong Jio subscriber expansion, and progress in new energy projects showcase RIL’s multi-segment strength and investor value creation.”

Overall, RIL’s Q2FY26 results demonstrate strong financial and operational performance across multiple segments, signaling recovery from last year’s challenges. With growing retail, digital, and green energy businesses, coupled with AI-driven initiatives, the company is well-positioned for sustained growth, renewed investor confidence, and long-term value creation.