Reliance Industries reported a 27.8% revenue jump for the second quarter of fiscal 2027, with net profit rising to ₹29,550 crore. Despite spending over ₹38,000 crore on capital projects, the company reduced its net debt to ₹1.17 lakh crore. While the oil-to-chemicals segment performed well, the retail business saw an 8.6% dip in operating profit due to inflation and shifting festive season timing.
Reliance Industries has posted strong financial results for the second quarter of the 2027 fiscal year, successfully balancing aggressive capital spending with a reduction in overall debt. The company reported a consolidated gross revenue of ₹3,62,268 crore, representing a 27.8% increase compared to the previous year. Profit after tax also saw a robust rise of 33.8%, reaching ₹29,550 crore.
A key focus for the conglomerate has been managing its balance sheet while funding large-scale expansion projects. During the quarter, Reliance Industries allocated ₹38,153 crore toward capital expenditure, bringing the total spending for the first half of the year to ₹76,835 crore. Despite this high spending, the company managed to reduce its net debt to ₹1,17,140 crore, a 4.7% decline from the previous quarter. This improvement was largely supported by cash inflows from the Reliance Jio Infocomm initial public offering and the prepayment of ₹27,500 crore in external borrowings. The net debt-to-EBITDA ratio, a key measure of how easily a company can service its debt, improved to 0.47, reflecting disciplined financial management.
Segment performance showed mixed results. The oil-to-chemicals division acted as the primary driver of growth, benefiting from strong petrochemical margins and improved fuel efficiency. Conversely, the retail segment encountered challenges, with EBITDA falling by 8.6%. The company noted that this dip was influenced by input-cost inflation and a calendar shift in the festive season, which delayed some consumer spending into the third quarter.
Reliance continues to invest heavily in its long-term strategy, particularly in green energy and consumer goods. The construction of five giga-factories in Jamnagar remains a central part of this plan, aimed at achieving an integrated solar capacity of 20GW. At the same time, the consumer products business continues to scale, having reached ₹22,000 crore in gross revenue just three years after its launch, with a presence now spanning 40 international markets.
Investors monitoring the stock should keep an eye on how these capital-intensive projects progress. While the company has demonstrated an ability to manage its debt, the execution of large projects like the giga-factories will be crucial. Additionally, the retail segment’s recovery in the third quarter will be an important factor to track, as it will reveal whether the recent dip was a temporary impact of the festive calendar shift or a more persistent issue caused by broader consumer demand trends.