Summary
Reliance Industries Limited - Q3 FY2026 Earnings Call Summary Friday, January 16, 2026, 7:47 PM IST
Event Participants
Executives 9 Amit Chaturvedi (President – Petrochemicals), Anshuman Thakur (Head of Strategy, Jio), Dinesh Taluja (CFO, Retail), Karan Suri (SVP – New Energy), Ketan Mody (Executive Director, Consumer Products), Kevin Vaz (CEO – Entertainment, JioStar), Sanjay Barman Roy (President – E&P), Sh V Srikanth (CFO, RIL), Srinivas Tuttagunta (COO – Refining & Marketing)
Analysts 8 Deepti Chaturvedi, Harit Kapoor, Kunal Vora, Nitin Tiwari, Probal Sen, Puneet Gulati, Sabri Hazarika, Sanjesh Jain
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Revenue | ₹2,75,000 crores | +10% YoY; Driven by digital services, retail, and O2C fuel cracks. |
| EBITDA | ₹44,500 crores | +6% YoY; Led by 15% growth in O2C and 16% in Digital Services. |
| PAT | ₹22,290 crores | +1.6% YoY; Muted due to higher finance costs and Jio asset depreciation. |
| Capital Expenditure | ₹33,800 crores | Primarily allocated to O2C (₹9k Cr), New Energy (₹8k Cr), and Jio (₹7.5k Cr). |
| Net Debt / EBITDA | Steady | Leverage remains stable; cash profit of ₹34,000 Cr covers quarterly capex. |
| Jio ARPU | ₹213.7 | +5.5% YoY; Growth driven by organic mix and 5G uptake, zero tariff hikes. |
| Retail EBITDA Margin | 8.0% | Impacted by festive promotions, Quick Commerce investment, and labor code. |
| O2C Throughput | 20.6 MMT | +2% YoY; Maximized to capture strong transportation fuel cracks. |
Geographic & Segment Commentary
- Jio Platforms: Reached 515 million subscribers with 53% of data traffic now on 5G. Fixed wireless (JioAirFiber) is the primary driver for 1.1 million monthly home additions, totaling 25 million homes. Market share in 5G subscribers stands at 65%.
- Reliance Retail: Revenue grew 8.1% to ₹97,600 crores despite the FMCG demerger and GST rate rationalization. Quick commerce reached a 1.6 million daily order run rate, operating through 3,000 stores (including 800 dark stores). Fashion and Lifestyle saw double-digit growth on a combined Q2-Q3 basis.
- O2C (Oil-to-Chemicals): EBITDA rose 15% YoY as transportation fuel cracks increased 60-100%. Strategic shift to 75% ethane-based cracking mitigated weak naphtha margins. Domestic fuel placement via Jio-bp outlets grew 24% in volumes.
- New Energy: Construction of the 10GW integrated solar factory is nearing completion at Jamnagar. Success in pilot ingot/wafer production and commissioning of HJT solar cell lines was confirmed. Battery giga-factory (40GWh) is on track for phased commissioning this year.
Company-Specific & Strategic Commentary
- Quick Commerce Leadership: JioMart is now the #2 player in India by order volume (1.6M orders/day). The segment is contribution-margin positive, leveraging 3,000 existing retail stores to minimize fixed costs.
- New Energy Integration: RIL is building a 1km-long glass furnace and polysilicon plant (one of few outside China) to ensure supply chain security. Total targeted power generation at Kutch was revised upward to 300 billion units annually.
- Strategic Partnerships: Launched “Gemini Pro” with Google for 5G users and partnered with Fabletics (athleisure) and Shein to expand retail reach.
- FMCG Scale-up: Reliance Consumer Products (RCPL) reached a ₹5,000 crore quarterly turnover, a 60% YoY increase. Four brands have now crossed the ₹1,000 crore annual revenue mark.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Solar Factory | 10GW by end of FY26 | Fully integrated chain from polysilicon to modules; expanding to 20GW modularly. |
| Jio IPO | “Imminent” (FY26/27) | Awaiting final government notification on SEBI recommendations for listing. |
| Petchem Margins | Recovery in 12 months | Global capacity rationalization (closures in Korea/Europe) expected to balance supply. |
| Generation Capacity | Starts in 12-15 months | First phase of green energy generation at Kutch to commence for captive use. |
Risks & Constraints
| Risk | Context |
|---|---|
| Asset Quality (Upstream) | Natural decline in KG-D6 fields is affecting E&P EBITDA; mitigation involves drilling new subsea wells. |
| Macro Volatility | High tanker freight rates (+sanctioned vessels) and volatile OSPs (Official Selling Prices) from the Middle East are pressuring O2C margins. |
| Global Petchem Glut | Industry operating rates remain at 80% due to massive Chinese capacity additions; recovery depends on “anti-involution” policies in China. |
Q&A Highlights
Retail Growth & Margins
- Question: What caused the single-digit revenue growth in Retail this quarter? (Puneet Gulati)
- Answer: Growth was impacted by the one-month absence of FMCG revenue (demerger), GST rate cuts, and the shift of festive demand to Q2. Adjusted for these, the business grew double-digits (Dinesh Taluja).
New Energy Economics
- Question: Can you compete with China on ingot/wafer pricing? (Puneet Gulati)
- Answer: Integration and round-the-clock green power for manufacturing provide a unique cost advantage. Chinese pricing is also beginning to move up from unsustainable levels (Karan Suri).
Jio Strategy & IPO
- Question: What is the status of the Jio IPO and 5G monetization? (Deepti Chaturvedi/Sanjesh Jain)
- Answer: The IPO is imminent pending government notifications on listing rules (Anshuman Thakur). 5G monetization is happening via data booms; Jio 5G users are on 99% 5G availability compared to <50% for competitors.
Quick Commerce Profitability
- Question: How is JioMart reaching contribution breakeven when others struggle? (Kunal Vora)
- Answer: High margin F&V (Fresh) sourcing and leveraging existing physical stores as hubs reduce the cost of delivery and wastage compared to pure-play dark store models (Dinesh Taluja).
Key Takeaway
Reliance Industries delivered a resilient Q3 FY2026, with consolidated EBITDA growing 6% to ₹44,500 crores. The performance was anchored by a 15% surge in O2C profitability due to strong transportation fuel cracks and 16% growth in Digital Services. Strategically, RIL is transitioning from a capex-heavy phase to an operational phase in New Energy, with the 10GW solar giga-factory nearing commissioning. Jio continues to dominate the 5G landscape with 253 million users, while Retail has successfully scaled Quick Commerce to 1.6 million daily orders. Management remains focused on the “Jio-moment” for energy, aiming for 300 billion units of green power generation. Despite short-term volatility in retail growth rates and global petchem headwinds, RIL’s diversified cash flows and recent “A-” credit rating upgrade provide a robust foundation for the upcoming commissioning of its New Energy ecosystem.
Want more insights like this?
Subscribe to get deep dives delivered to your inbox.
More Earnings Summaries
Explore more Q3 FY26 earnings call analyses: