RIL Q2 Profit Climbs 10%; Are Jio and Retail the New Twin Engines?

On Oct 17, 2025, Mukesh Ambani-led RIL (Reliance Industries) posted robust Q2 results. In Q2Fy26, the conglomerate showcased its diversified portfolio’s formidable strength, with its consolidated net profit growing to 9.67% YoY. This amounted to ₹18,165 crores as against ₹16,563 crores a year back. A healthy jump was also witnessed in its revenue from operations, registering a 9.94% climb (Livemint).

However, this double-digit growth cannot be attributed to a single vertical. There was an all-round power performance by legacy as well as retail, consumer-facing arms. The legacy Oil-to-chemicals (O2C) business, and consumer-facing Jio and Retail arms displayed stellar performance. With all core businesses firing in unison, there's a question for investors: has RIL successfully cemented its pivot to a consumer-first giant, and what does this mean for its next growth phase?

What’s Fuelling the Double-Digit Growth?

RIL Q2 numbers have revealed a well-oiled machine, with the new-age consumer businesses not just supporting, but actively leading growth. On the other hand, the legacy business has provided a stable, cash-generating floor. This diversified RIL model is its core strength. Here’s more on the new-age and legacy business results bifurcation.

Jio Platforms (The Digital Behemoth)

• Subscriber Milestone: The ‘Breaking News’ was Jio having proudly served over 500 million subscribers. They ended the quarter with a total base of 506 million users.
  
• Financials: Revenue soared 14.9% YoY, with EBITDA jumping 17.7%.
  
• ARPU Growth: The crucial Average Revenue Per User (ARPU) has continued to climb - rising 8.4% YoY to ₹211.4. This is the proof of Jio's ability to effectively monetise its massive user base.
  
• New Growth Driver: JioAirFiber is scaling at an incredible pace. It has now reached a subscriber base of 9.5 million.
  

Reliance Retail (The Consumption Engine)

• Profitability: Retail arm RRLV (Reliance Retail Ventures Ltd.) net profit surged an impressive 21.9% YoY to ₹3,457 crore.
  
• Expansion: The company's relentless focus on expansion has continued with 412 new stores opened during the quarter.
  
• Category Leadership: Growth was broad-based, with Grocery and Fashion increasing by 23% and 22%, respectively. Both segments had delivered market-leading performances.
  
• Management View: Executive Director Isha Ambani noted that the strong performance was also aided by festive buying and that recent GST rate changes will "further accelerate consumption growth."
  

Oil-to-Chemicals (The Legacy Cash Cow)

• Strong Rebound: The O2C segment delivered a robust 20.9% YoY growth in EBITDA. Recovery in fuel margins over the previous year was the main growth driver.
  
• Fuel Retailing: The Jio-bp fuel retail network continued to expand, now at 2,057 outlets. It saw an impressive volume growth of 34% for HSD and 32% for MS.
  

With the consumer businesses now contributing so significantly to the bottom line, how is RIL balancing its capital allocation between these high-growth ventures and its next big bet on new energy?

Beyond the Core: What’s the Next Growth Trigger?

RIL’s core businesses had dominated their Q2 growth story. However, Chairman Mukesh Ambani's commentary, along with operational updates, have clearly pointed to the next major growth engines: Media and New Energy.

The Media and Entertainment business, operating under JioHotstar has delivered a record EBITDA. The India-England Test Series has set a new benchmark. It has become the most-watched Test series ever on a digital platform with 170 million viewers. The platform's reach remains immense. The platform averaged 400 million monthly active users during the quarter.

But the New Energy transition was the most notable long-term progress story. With time-bound and tangible investments, a move away from fossil fuels and towards becoming a green energy leader might reap positive results. By confirming the news at its first solar cell production line to be launched in Jamnagar in October, the seeds of New Energy growth have been sowed. Furthermore, its Kutch solar energy plants are slated to start generating power from the first half of 2026-27. This pivot, backed by a considerable capital expenditure, is no longer a distant vision but a concrete business plan in motion.

This pivot into green energy is monumental, but how will investors value this capital-intensive new venture before it starts generating significant returns?

What Does This Mean for the Stock?

The market was already anticipating a strong quarter. This was witnessed with RIL's stock price trending upwards in the two sessions leading into the results. Now, with the company delivering on all fronts, market experts are predicting further upside.

Several analysts have called the results a "robust performance," indicating a "significant trendline breakout pattern," “reflecting strong bullish sentiment.”

Backed by strong fundamentals, this positive technical setup has cheered RIL stockholders. The robust performance, clear subscriber growth, and tangible progress in new energy have provided a strong platform for the stock. With experts predicting a gap-up opening, will this quarter finally be the catalyst that propels the stock to new all-time highs?

Source:

Business Today
Livemint
The Economic Times
Business Standard