Following the quarterly results, domestic brokerage HDFC Securities maintained a Buy rating on the stock with a target price of Rs 1,685. The brokerage noted that RIL’s consolidated Q2 FY26 EBITDA stood at Rs 459 billion (+17.5% YoY, +6.9% QoQ), slightly above their estimate of Rs 455 billion. APAT at Rs 181.6 billion (+9.7% YoY; +0.5% QoQ) came in below expectations due to lower-than-expected other income.
HDFC Securities’ positive rating is based on: 1) Digital business EBITDA growth, driven by ARPU improvement, subscriber additions, and new revenue streams 2) O2C margin recovery and 3) Value unlocking potential in digital and retail businesses.
Revenue from operations during the quarter under review also increased 10% YoY to Rs 2.59 lakh crore, as against Rs 2.35 lakh crore in Q2FY25. While the net profit came in slightly below the Street’s estimate of Rs 18,643 crore, the topline performance exceeded estimates pegged at Rs 2.51 lakh crore.
Gross revenue for the quarter stood at Rs 2.83 lakh crore, also reflecting a 10% YoY increase. The company’s EBITDA for Q2FY26 came in at Rs 50,367 crore, registering a 15% YoY growth. The EBITDA margin stood at 17.8%, up 80 basis points from the same period last year.
Sequentially, the company’s PAT saw a 33% decline from Rs 26,994 crore reported in Q1FY26. Revenue was down 4% quarter-on-quarter (QoQ) versus Rs 2.49 lakh crore in the previous quarter.Capital expenditure for the quarter stood at Rs 40,010 crore ($4.5 billion), with investments directed towards expanding the Oil-to-Chemicals (O2C) capacity, scaling up Jio Telecom and digital services, enhancing retail operations, and building New Energy giga factories.Commenting on the results, Chairman and Managing Director Mukesh D. Ambani said that the performance was driven by strong contributions from the O2C, Jio, and retail segments. He highlighted that consolidated EBITDA recorded a 14.6% YoY increase, which he attributed to agile business operations, a domestically focused portfolio, and structural growth in the Indian economy.
Ambani also emphasized the ongoing momentum in RIL’s digital services segment, supported by growth in subscriber additions across home and mobility services. He noted that Jio’s technological advancements and widespread 5G rollout are enabling better broadband connectivity across households in India.
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