Reliance Industries Ltd. was generously rewarded in trade by investors on Monday after the company posted record profitability in its oil-to-chemicals (O2C) business for the second quarter of fiscal 2027.
Consequently, the market capitalisation of the Mukesh Ambani-led conglomerate surged past Rs 17 lakh crore, though, by 1:45 p.m., the Mcap stood at around Rs 16.9 lakh crore.
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Shares of the company had risen as high as 8.16% to Rs 1,260 apiece on the NSE during the day, and later pared some gains to trade 7.6% higher at Rs 1,253.40.
RIL Q2 FY27: O2C Shines, Growth Remains Uneven
Reliance Industries Ltd. (RIL) delivered a strong September quarter of financial year 2027 (Q2 FY27) performance, powered by record profitability in its oil-to-chemicals (O2C) business. Consolidated EBITDA rose 23% year-on-year (YoY) to Rs 56,616 crore, while net profit increased 41% to Rs 25,548 crore. O2C EBITDA surged 68% YoY to Rs 25,203 crore, marking a record for the segment.
But the earnings strength came with a notable gap in performance across businesses. Reliance Retail's EBITDA declined 10% YoY for the second consecutive quarter, as digital commerce investments, input cost inflation and a shift in the festive calendar weighed on profitability.
ALSO READ: Reliance Industries Q2 Review: Record O2C Earnings, Retail Weakness And A Brokerage Divide
O2C was the biggest growth driver, with EBITDA jumping 48% sequentially to Rs 25,203 crore, its sharpest increase in at least 27 quarters. Strong refining margins, improved petrochemical spreads, better product placement and feedstock sourcing supported the performance.
In contrast, Retail EBITDA fell 3% sequentially to Rs 6,120 crore. The segment faced pressure from digital commerce investments, input cost inflation, store rationalisation and the shift in the festive calendar. Its EBITDA margin contracted 103 basis points year-on-year to 7.3%.
Jio remained steady, with digital services EBITDA rising 18% YoY to Rs 22,200 crore, supported by subscriber additions and higher average revenue per user (ARPU).
Reliance's net debt declined to Rs 1.17 lakh crore from Rs 1.23 lakh crore in the previous quarter.
Brokerage Takes
Brokerages remain positive on RIL, with ‘Buy' ratings across the recommendations in the notes reviewed. However, their target prices reflect differing expectations around the sustainability of O2C margins and the pace of retail recovery. JPMorgan raised its target to Rs 1,675, while Jefferies maintained Rs 1,710. Emkay and Motilal Oswal, meanwhile, lowered their targets despite retaining ‘Buy' ratings.
Share Price History
RIL's stock has declined 20.24% year-to-date, and 15.75% in the last 12 months.
Should You Buy, Sell, Or Hold?
All the 32 analysts tracking RIL's stock on Bloomberg recommend buying it, with the consensus target price of Rs 1,569.52 apiece implying a potential upside of 25.3%.
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