RIL posts 11% jump in Q1 profit; Jio Digital Services remains biggest growth engine

Reliance Industries Ltd (RIL) reported an 11.4% year-on-year increase in consolidated net profit for the quarter ended June 30, aided by a recovery in its oil-to-chemicals (O2C) business and continued strong momentum in digital services, where Jio remained the group's largest earnings contributor.

The Mukesh Ambani-led conglomerate posted a consolidated net profit attributable to shareholders of ₹16,971 crore for the first quarter of FY27, compared with ₹15,245 crore in the year-ago period. Revenue from operations rose 25.4% year-on-year to ₹311,850 crore, while total income increased to ₹325,290 crore.

The results underscore Reliance's increasingly diversified earnings profile, with consumer businesses continuing to offset the cyclicality of its energy operations.

Jio remains Reliance's biggest profit engine

Reliance's digital services business once again emerged as the group's strongest earnings contributor.

The segment reported revenue of ₹46,900 crore, up 11.8% from ₹41,949 crore a year ago. More importantly, EBITDA rose to ₹21,255 crore, the highest among all of Reliance's business segments, while EBIT increased to ₹13,564 crore from ₹11,416 crore a year earlier.

The performance reflects continued growth in subscriber monetisation, higher data consumption and operating leverage across Jio's digital ecosystem, reinforcing telecom as Reliance's primary profit generator even as the company continues investing across multiple businesses.

The digital services segment contributed over 41% of Reliance's total segment EBITDA during the quarter, maintaining its position as the group's most profitable business.

O2C business rebounds

Reliance's legacy oil-to-chemicals business staged a notable recovery during the quarter as refining margins and petrochemical performance improved.

Segment revenue increased to ₹201,803 crore from ₹154,804 crore a year ago. EBITDA rose to ₹17,010 crore, while EBIT climbed to ₹14,170 crore, compared with ₹12,521 crore in the corresponding period last year.

The stronger performance from O2C helped offset normalisation in retail profitability and underlined the continued importance of Reliance's energy business despite the growing contribution from consumer operations.

Retail delivers steady growth

Reliance Retail generated ₹90,409 crore in revenue during the quarter, compared with ₹84,172 crore a year ago.

The business reported EBITDA of ₹6,309 crore and EBIT of ₹4,529 crore. While revenue expanded on a yearly basis, profitability moderated sequentially following the seasonally stronger March quarter.

Retail remains the group's second-largest consumer business and continues to benefit from store expansion and a growing omni-channel presence.

Oil and gas remains resilient

The upstream oil and gas business posted revenue of ₹6,298 crore, with EBITDA of ₹4,973 crore and EBIT of ₹3,888 crore, reflecting stable operational performance during the quarter.

Operating performance strengthens

Reliance reported profit before tax of ₹27,195 crore and profit after tax of ₹20,616 crore before accounting for associates and joint ventures. Including those, consolidated profit stood at ₹20,589 crore.

The comparison with the previous year is also affected by a one-time gain. The company noted that other income in the June 2025 quarter included ₹8,924 crore from the sale of listed investments, making the current quarter's growth more representative of underlying operating performance.

Balance sheet remains strong

Reliance ended the quarter with consolidated assets of ₹22.09 lakh crore, up from ₹19.86 lakh crore a year earlier, while total liabilities stood at ₹15.01 lakh crore. The debt-to-equity ratio remained stable at 0.41, highlighting the company's ability to fund expansion while maintaining a healthy balance sheet.

Outstanding non-convertible debentures stood at ₹27,389 crore, including ₹20,000 crore of secured debentures backed by security cover exceeding 1.25 times the outstanding amount.

The June quarter reinforces two clear themes for Reliance. First, the recovery in the O2C business has restored momentum to its traditional energy operations. Second—and increasingly more significant—Jio's digital services business continues to anchor the group's profitability, delivering the highest EBITDA among all business verticals.

As Reliance expands across telecom, retail, new energy and digital infrastructure, the earnings mix continues to shift towards high-margin consumer businesses while retaining the cash-generating strength of its energy operations.