Reliance Industries delivered a strong top-line performance in Q3 with consolidated revenue from operations rising 11% year-on-year to ₹2.69 lakh crore, though net profit growth remained muted at 0.56% YoY to ₹18,645 crore. The company posted EBITDA of ₹50,932 crore, marking 6% year-on-year growth, primarily driven by robust performance in the Jio telecom business and Oil-to-Chemicals (O2C) segment.

Financial Performance Overview

The diversified conglomerate showed steady business momentum with sequential improvements, as net profit rose 3% quarter-on-quarter from ₹18,165 crore and revenues increased 4% sequentially. However, higher operational costs partially impacted profitability during the quarter.

O2C Segment Powers Performance

The O2C business demonstrated exceptional strength with EBITDA surging to ₹16,507 crore, significantly higher than ₹15,008 crore in the previous quarter and ₹14,402 crore year-on-year. The strong O2C performance was driven by improved refining margins, with stronger refining cracks more than offsetting challenges from lower Russian crude intake and higher freight rates.

Digital Services Maintains Growth Trajectory

Jio delivered steady performance with wireless revenue growing 8% year-on-year, supported by robust subscriber additions. ARPU improved across multiple timeframes, rising 5.1% year-on-year and 1.1% quarter-on-quarter to ₹213.70 per user. The company announced during the earnings call that the Jio IPO is imminent and the process is currently underway.

Cost Pressures and Investment Focus

Higher costs partially impacted profitability during the quarter. Depreciation rose 11% year-on-year to ₹14,622 crore, while finance costs increased 7% to ₹6,613 crore, largely due to the operationalisation of 5G spectrum assets. Tax expenses also climbed 10% year-on-year to ₹7,530 crore.

Capital expenditure stood at ₹33,826 crore during the quarter, reflecting continued investments in O2C and new energy projects, along with sustained spending on expansion and strengthening of Jio and Retail networks and infrastructure.

Management Outlook and Strategic Vision

"Reliance is entering a new phase of value creation with its initiatives in the AI and New Energy domains. I am confident that Reliance will play a pioneering role in the evolution of these epoch-defining technologies, providing sustainable solutions at scale for India and the world," said Mukesh Ambani, Chairman and MD.

Market Performance and Analyst Sentiment

Reliance Industries shares ended Friday's session almost flat, slipping marginally by 0.05% to close at ₹1,457.60. From a technical perspective, the stock's 14-day Relative Strength Index (RSI) stands at 33.4, indicating potential oversold conditions.

Nearly 95% of the 37 analysts tracking the Nifty 50 heavyweight maintain their 'Buy' recommendation following the earnings announcement, with major brokerages highlighting the company's strong fundamentals and growth catalysts including the upcoming Jio listing and new energy initiatives.

A senior executive from Reliance Industries has issued a warning about potential oversupply conditions in the global oil market that could significantly impact crude oil prices in 2026. The statement reflects the company's assessment of evolving supply-demand dynamics in the international energy sector.

Market Outlook and Supply Concerns

The executive's warning centers on anticipated oversupply conditions that may emerge in 2026, which could create downward pressure on oil prices. This assessment comes as the global energy market continues to navigate various supply and demand factors that influence crude oil pricing.

Industry Impact Assessment

As one of India's largest integrated oil and petrochemicals companies, Reliance Industries' market outlook carries significant weight in understanding future energy sector trends. The company's perspective on oil market dynamics reflects its extensive experience in refining operations and petrochemical production.

Global Energy Market Dynamics

The warning about potential oversupply highlights the complex factors that influence global oil markets. Supply-demand imbalances in the energy sector can have far-reaching implications for oil prices, affecting both producers and consumers across various industries.

Strategic Implications

The executive's assessment of 2026 market conditions suggests that industry participants may need to prepare for potential pricing pressures resulting from excess supply. This outlook could influence strategic planning and operational decisions across the energy sector as companies evaluate future market scenarios.