Namaste. When you analyse a giant like Reliance Industries Limited, quarterly numbers can often distract more than they inform. Over three decades of tracking Indian corporates, I’ve learned that the real signal lies not in small profit swings, but in where capital is moving and what risks are being reduced.
The Q3 FY26 results of Reliance Industries Limited, released on January 16, 2026, show exactly that. At first glance, the numbers look puzzling—revenue grew in double digits, but profit barely moved. Look deeper, and a very different story emerges: Reliance is deliberately reshaping itself into a consumer-first, technology-backed, all-weather conglomerate, less dependent on oil cycles and more aligned with India’s long-term growth and geopolitics.
What we are seeing in FY26 is a mid-pivot phase. The most capital-intensive part of the 5G rollout is peaking, while the New Energy ecosystem is just beginning to shift from investment mode to early execution. This article breaks down what really matters in Reliance’s Q3 FY26 performance, using simple language, real data, and a long-term fundamental lens.
1. Executive Summary: The Macro Perspective
The headline numbers tell us two things at once. First, Reliance is still growing strongly. Second, it is choosing future dominance over short-term profit comfort.
In Q3 FY26, Reliance reported consolidated revenue growth of about 10% year-on-year, while net profit grew by just 0.56%. For short-term traders, this looks underwhelming. For long-term analysts, this is intentional.
The reason lies in capital intensity. Reliance spent ₹33,826 crore in quarterly capex, largely across 5G infrastructure, retail expansion, and new energy projects. This led to higher depreciation and finance costs, which flowed straight through the profit and loss statement.
The big structural shift is this: non-energy businesses—Jio and Retail—now contribute close to 60% of consolidated EBITDA. That is a historic milestone. Reliance is no longer hostage to crude cycles or refining margins alone. It has built a diversified earnings engine that also acts as a geopolitical hedge in an increasingly fragmented global economy.
Reliance Industries – Investor Relations (Primary Source)
2. Master Table: The Core Numbers That Matter
Before analysing segments, it is important to ground ourselves in the core data from Q3 FY26.
Reliance reported consolidated revenue of ₹2,93,829 crore, up 10.0% year-on-year, showing broad-based momentum across energy, telecom, and retail. Consolidated EBITDA stood at ₹50,932 crore, a 6.1% increase, marking one of the strongest recurring EBITDA performances in the company’s history.
Net profit attributable to shareholders came in at ₹18,645 crore, up just 0.56%. This modest growth was not due to weak operations but due to higher finance costs of ₹6,613 crore (up 7%) and depreciation of ₹14,622 crore (up 10.9%).
For a company rolling out national-scale digital and energy infrastructure, such depreciation is not a red flag—it is expected. In fact, it signals that assets are moving from construction to operational phase.
NSE India – Reliance Corporate Filings
3. Segmental Deep Dive: Where the Pulse Really Lies
The real insight into Reliance comes from understanding how each major business is performing and why.
A. Jio Platforms: The AI-Ready Digital Giant
The strongest momentum in Q3 FY26 came from Jio Platforms.
Jio Platforms reported EBITDA of ₹19,303 crore, a robust 16.4% year-on-year growth. This growth was driven by two powerful trends: rising data consumption and the transition to 5G.
Average Revenue Per User (ARPU) increased to ₹213.7, reflecting better monetisation as customers migrate to higher-value 5G plans. Importantly, over 250 million users are now on Jio’s 5G network, making it one of the fastest 5G rollouts globally.
The strategic angle goes beyond telecom. Jio is evolving from a traditional telco into an AI-ready digital infrastructure provider. Its focus on Jio AirFiber, which has crossed 10 million connections, is a direct play for the high-margin fixed broadband market. This positions Jio not just as a mobile network, but as the backbone for smart homes, enterprise connectivity, and future AI-driven services.
Telecom Regulatory Authority of India (TRAI)
B. Oil-to-Chemicals (O2C): The Resilience Engine
Despite global volatility, Reliance’s Oil-to-Chemicals (O2C) business once again proved its resilience.
In Q3 FY26, O2C EBITDA grew 14.6% year-on-year to ₹16,507 crore. The key driver was strong refining margins, often referred to as fuel cracks. Refining margins rose sharply—by 60% to 100% year-on-year—helped by favourable product spreads and flexible crude sourcing.
This strength offset weakness in downstream chemicals, where global oversupply and slower demand continued to pressure margins. Reliance’s ability to balance these forces reflects deep operational expertise.
From a geopolitical perspective, Reliance’s management of crude sourcing—especially amid shifting Western sanctions and evolving Russian crude dynamics—has been a masterclass in supply-chain agility. Few global refiners operate at this scale with such flexibility.
Ministry of Petroleum & Natural Gas (India)
C. Reliance Retail: Building a Consumption Fortress
Reliance Retail’s Q3 FY26 numbers require careful interpretation.
Retail revenue stood at ₹97,605 crore, up 8.1% year-on-year. However, EBITDA growth was muted at around 1.3%. This was not due to weak demand, but timing and structure.
The festive season in FY26 was split between Q2 and Q3, which diluted quarter-specific margins. Additionally, the demerger of the Consumer Products division temporarily affected comparability.
Strategically, Retail remains a long-term strength. Reliance Retail now operates 19,979 stores across formats. Its quick commerce platform handles around 1.6 million orders per day, creating a powerful last-mile network.
This scale acts as a defensive wall against global e-commerce entrants. While international players compete on discounts, Reliance competes on reach, data, and integrated supply chains.
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4. The Fundamentalist’s Analysis: Decoding the Balance Sheet
From a balance-sheet perspective, Reliance remains exceptionally strong for a company of its size.
The net debt-to-EBITDA ratio stands at just 0.56x, reflecting prudent leverage despite aggressive expansion. Maintaining an “A” grade credit profile while investing heavily in telecom and energy infrastructure is rare, not just in India but globally.
One of the most important developments in Q3 FY26 was progress in New Energy. The commissioning of solar gigafactories for modules and cells during the quarter marks a shift from pure spending to early operational readiness. While revenues from this segment are still modest, the direction is clear.
Why did profit remain flat despite operational strength? The answer lies in the P&L flow-through of 5G spectrum interest and depreciation. For a long-term analyst, these are quality headwinds. They reflect asset creation, not value erosion.
Jio Financial Q3 FY26 Results Explained: Why the Profit Dip Signals a Bigger Growth Pivot
5. Geopolitical and Policy Outlook
Reliance’s strategy must also be viewed through a geopolitical lens.
The possibility of a “Trump 2.0” scenario in the US raises questions about tariffs and trade policies, particularly for chemical exports. However, Reliance’s diversified portfolio and increasing localisation of supply chains reduce its exposure to any single market.
On the energy transition front, India’s policy support for Green Hydrogen aligns closely with Reliance’s ₹75,000 crore New Energy investment plan. Government incentives and subsidies lower execution risk and improve long-term returns.
That said, global oil markets may face oversupply risks in late 2026, which could pressure refining margins. This makes the growing contribution from Jio and Retail even more critical, reinforcing Reliance’s all-weather model.
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6. Conclusion: Entering the “Value Creation” Phase
Q3 FY26 is not about the 0.5% profit growth. It is about something far more important—the maturation of Reliance’s long-term bets.
5G capex is peaking, digital assets are being monetised, and New Energy is moving closer to execution. At the same time, the company has preserved balance-sheet strength and credit quality.
Final verdict: Reliance Industries has successfully built an all-weather business model. When energy margins soften, digital and consumer businesses pick up the slack. When capex peaks, operating leverage follows.
For long-term investors and observers of India’s economic evolution, Q3 FY26 marks a quiet but powerful transition—from expansion to sustained value creation.
❓ FAQ SECTION
FAQ 1: Why did Reliance Industries’ profit remain flat in Q3 FY26?
Reliance Industries’ profit stayed almost flat in Q3 FY26 due to higher depreciation and finance costs arising from heavy investments in 5G, retail expansion, and new energy projects. These costs affected short-term profitability but supported long-term growth.
FAQ 2: How much did Reliance Industries’ revenue grow in Q3 FY26?
Reliance Industries reported around 10% year-on-year revenue growth in Q3 FY26, driven by strong performance in digital services, retail, and resilient refining margins in its energy business.
FAQ 3: Which business segments are driving Reliance’s growth now?
Jio Platforms and Reliance Retail are the primary growth drivers. Together, non-energy businesses now contribute close to 60% of consolidated EBITDA, reducing Reliance’s dependence on cyclical energy markets.
FAQ 4: How is Reliance Jio performing in FY26?
Reliance Jio delivered strong performance in FY26, supported by rising ARPU, rapid 5G adoption, and growth in AirFiber connections. These factors helped drive double-digit EBITDA growth for the digital segment.
FAQ 5: Is Reliance Industries financially stable despite high capex?
Yes. Reliance Industries maintains a strong balance sheet with a low net-debt-to-EBITDA ratio of around 0.56x. This reflects prudent financial management despite aggressive investment in future-focused businesses.
FAQ 6: What role does New Energy play in Reliance’s future?
New Energy is a long-term growth pillar for Reliance. The commissioning of solar module and cell facilities in FY26 marks a shift from investment to early execution, aligned with India’s energy transition goals.
🔎 PEOPLE ALSO ASK (PAA)
Is Reliance Industries profitable in FY26?
Yes, Reliance Industries remains profitable in FY26. While profit growth was muted in Q3 FY26, the company continues to generate strong cash flows and operating earnings across energy, digital, and retail businesses.
Why is Reliance focusing more on Jio and Retail than oil?
Digital services and retail offer more stable, long-term growth compared to cyclical oil markets. By expanding Jio and Retail, Reliance is building a diversified earnings base less exposed to global commodity volatility.
How important is Jio to Reliance Industries’ valuation?
Jio plays a critical role in Reliance’s valuation due to its large subscriber base, growing ARPU, and potential to become a digital and AI infrastructure platform. It provides long-term growth visibility beyond energy.
What is the impact of capex on Reliance’s short-term profits?
High capital expenditure increases depreciation and interest costs, which can temporarily suppress profits. However, such investments create future revenue streams and operating leverage, supporting long-term value creation.
How does Reliance compare with global conglomerates?
Reliance stands out for combining energy, digital, retail, and new energy businesses under one balance sheet. Few global conglomerates have achieved similar scale while maintaining low leverage and strong domestic market dominance.
Is Reliance Industries a long-term investment stock?
Reliance Industries is widely viewed as a long-term investment option due to its diversified business model, strong balance sheet, and strategic focus on future-ready sectors like digital services and clean energy.
