Reliance Industries Q1 Q1FY26: Retail & Digital Fuel Growth, Asian Paints Stake Sale Boosts PAT

Reliance Industries kicked off FY26 on a slightly lower than expected note, driven by steady performance in its digital and retail businesses. In Q1 FY26 (June 2025), the company reported a 5% year-on-year (YoY) increase in revenue, signalling resilience in its core operations despite challenges in some verticals.

Retail and Digital Businesses Lead Growth

The retail and digital segments were the key pillars of revenue growth:

• Reliance Jio Infocomm Ltd (RJIL) and Jio Platforms witnessed solid sequential and annual growth. This came on the back of increased data consumption and the addition of new users—underscoring Jio’s continued expansion in India’s digital ecosystem.
  
  
• The retail business saw YoY growth, largely supported by strong performances in the grocery and fashion categories, as well as broader network expansion. However, consumer electronics and device sales were affected by the early onset of monsoon rains.
  
  

Muted Performance in O2C Segment

Reliance’s Oil-to-Chemicals (O2C) business underperformed, with revenue declining on a YoY basis. This was attributed to planned plant shutdowns and lower production volumes, though domestic demand offered some cushion.

Media Segment Shows Momentum

Reliance’s media platform reported a surge in revenue, thanks to:

• Higher user traffic
  
  
• Engaging new content launches
  
  
• Increased viewership in the sports segment, which has become a major driver of digital media consumption
  
  

Profit Boosted by Asian Paints Stake Sale

On the profitability front, Reliance Industries reported a Profit After Tax (PAT) of ₹26,994 crore in Q1 FY26, marking a 78% YoY and 39% QoQ jump.

However, this spike was significantly influenced by an extraordinary gain of ₹8,924 crore from the sale of its stake in Asian Paints. Even after excluding this one-time income, the company’s PAT grew 19% YoY, reflecting solid operational performance.

EBIDT & Margin Performance

• Earnings Before Interest, Depreciation, and Taxes (EBIDT) stood at ₹42,905 crore, slightly lower sequentially, yet reflecting stable margins of 16%—in line with previous quarters.
  
  
• The EBIDT margin remained healthy and steady, aided by higher-margin digital and media businesses.
  
  

Quarter-wise Summary (Key Metrics)

Outlook

Reliance’s consistent performance across digital, retail, and media is likely to remain the cornerstone of growth. Although the O2C business faced temporary challenges, the company continues to diversify its revenue streams effectively. The one-off gain from the Asian Paints stake sale strengthens the balance sheet and provides further financial flexibility.

As India’s consumption story deepens and digital adoption accelerates, Reliance is well-positioned to capitalise on these macro trends in the quarters ahead.