Reliance Industries Shares Surge Over 6% to Lead Nifty Gainers After Record Q2 Profit of Rs 29,550 Crore
Shares of index heavyweight Reliance Industries Ltd (RIL) jumped over 6% in morning trade on Monday, November 2, emerging as the top gainer on the Nifty 50 and the primary driver of market momentum. The stock opened at ₹1,228.10 on the National Stock Exchange (NSE) against Friday's close of ₹1,164.90, before rallying as much as 6.21% to touch an intraday high of ₹1,237.30.
The rally came after the Mukesh Ambani-led conglomerate posted its strongest-ever quarterly financial performance for the July–September quarter (Q2 FY27), easily topping street expectations on the back of an exceptional turnaround in its refining and petrochemical operations.
Blockbuster Financial Performance
RIL reported a 33.8% year-on-year surge in consolidated profit after tax (PAT)—including its share of associates and joint ventures—at ₹29,550 crore, compared with ₹22,092 crore in the corresponding period of the previous fiscal year. Net profit attributable to the company's owners rose 40% year-on-year to ₹25,548 crore.
Consolidated revenue from operations expanded 27.8% year-on-year to ₹3,62,268 crore, while consolidated earnings before interest, tax, depreciation, and amortisation (EBITDA) rose 23.9% to a record high of ₹62,409 crore. The quarterly earnings pushed RIL's first-half net profit past the ₹50,000 crore milestone for the first time in corporate history.
O2C Business Powers Earnings Engine
The oil-to-chemicals (O2C) segment served as the primary growth engine for the quarter. Segment EBITDA vaulted 67.9% year-on-year to an all-time high of ₹25,203 crore, as segment revenue climbed 44.2% to ₹2,31,601 crore. The segment's operating margin expanded by 160 basis points to 10.9%.
Global transportation fuel cracks increased between 3 and 3.7 times their year-ago levels, spurred by supply chain disruptions in the Middle East and attacks on regional refining infrastructure. Dated Brent crude averaged $97 per barrel during the quarter, up 40.6% year-on-year. RIL noted that its diversified crude procurement and flexible refining configuration allowed it to capture elevated spreads despite geopolitical risks and higher ocean freight costs.
Key Segmental and Operational Highlights
Breakdown of Core Business Segments:
- Oil-to-Chemicals (O2C): Revenue rose 44.2% year-on-year to ₹2,31,601 crore, with export earnings climbing 46.9% to ₹1,04,250 crore, supported by elevated crack spreads and downstream chemical pricing.
- Jio Platforms: Digital services maintained steady earnings growth following its market debut on October 28, where its ₹30,188 crore initial public offering was subscribed over 22 times.
- Reliance Retail: Reliance Retail Ventures Ltd (RRVL) recorded gross revenue of ₹91,716 crore, marking an adjusted 6.4% year-on-year growth. Segment EBITDA stood at ₹6,228 crore, reflecting margin moderation due to inflation absorption and the shift of primary festive demand into the third quarter.
- Balance Sheet Health: Net debt dropped to ₹1.17 lakh crore at the end of September from ₹1.23 lakh crore at the end of June, improving the net debt-to-EBITDA ratio to 0.47 times. Quarterly capital expenditure stood at ₹38,153 crore.
Market Outlook
Commenting on the results, Chairman and Managing Director Mukesh Ambani stated that operational versatility and an integrated business model enabled Reliance to effectively navigate external volatility and commodity market turbulence.
For Indian market participants, RIL's surge underlines its outsized role in steering the Nifty 50 and BSE Sensex. With refining margins maintaining resilience and consumer-facing arms poised for seasonal acceleration in the festive quarter, brokerage houses noted that the strong operational beat provides vital valuation support to Dalal Street amid ongoing global macro crosscurrents.
