Reliance Industries (RIL) Performance Analyzed

Key Points

• RIL shares jumped, up over 1%, driven by upcoming earnings.
• The company’s board will meet to approve Q2FY26 results.
• Ebitda growth expected around 3% due to strong telecom & O2C.
• Telecom & Retail now make up 54% of RIL’s earnings.
• JP Morgan values RIL Retail at $143 billion, Jio at $135 billion.
• Growth in key areas will offset weaker performance in upstream.

Reliance Industries (RIL) saw a significant rise in its stock price on Friday. The shares climbed by more than 1%, reaching a high of ₹1,417.8 per share. This jump was fueled by anticipation of the company’s second-quarter financial results for the financial year 2026.

The board of directors at RIL is scheduled to meet on the same day to officially review and approve these results. This meeting is a crucial moment for investors as it provides a detailed look at the company’s performance over the past three months.

Despite a general advance in the Nifty 50 index (a rise of 0.60%), RIL’s stock gained ground, marking its highest level since October 16th of this year. The stock has already increased by 16.5% this year, compared to an 8.8% increase in the Nifty 50.

RIL’s total market capitalization is a massive ₹19.16 trillion. The company is India’s largest by market value, highlighting its significant influence on the country’s economy.

Analysts predict that RIL’s Ebitda (Earnings Before Interest, Tax, Depreciation, and Amortization) will grow approximately 3% compared to the previous quarter. This growth is mainly driven by strong performances in its telecommunications business (Reliance Jio) and its oil-to-chemical (O2C) business.

However, there are some challenges. The upstream business – which involves exploring and extracting oil – is expected to decline. Despite this, RIL’s retail business and the telecom sector are projected to continue their strong growth trajectory.

Global brokerage Nomura specifically forecasts RIL’s Q2FY26 consolidated Ebitda to rise 3% quarter-on-quarter, projecting a figure of around ₹44,400 crore. They attribute this to the success of Reliance Jio and the O2C business. They also acknowledge that growth in these areas might be partially offset by a weaker retail sector and a decline in the upstream business.

JP Morgan has a positive outlook, valuing RIL’s retail business at a substantial $143 billion and Reliance Jio at $135 billion. They believe RIL’s retail and telecom sectors are key drivers of future earnings, representing nearly 54% of the company’s current Ebitda.

Furthermore, a recent announcement regarding the listing of RIL’s telecom arm, Reliance Jio Infocomm, has boosted confidence. JP Morgan anticipates that upcoming tariff increases at Jio, possibly ahead of a potential initial public offering (IPO), will further strengthen the company’s financials.

Finally, the company’s December revenues are expected to be supported by recent changes in the Goods and Services Tax (GST) – a tax on goods and services.

“RIL’s retail and telecom sectors are pivotal to the company’s future growth and profitability.”