Reliance underlying profit jumps 16% as Jio drives Q1 growth
Reliance Industries reported a 16% increase in underlying first-quarter profit, driven by strong telecom margins and a planned Jio IPO that analysts say will unlock significant shareholder value.
Reliance Industries posted a 22.4% year-on-year drop in consolidated net profit to ₹20,946 crore for the quarter ending June 30, 2026. However, the headline decline masks the underlying operational strength of the conglomerate. The drop was entirely attributable to a high base from the prior year, which included a one-time ₹8,924 crore gain from the sale of its stake in Asian Paints. Stripping out that exceptional item, net profit grew 15.9%.
Revenue climbed 25.4% year-on-year to ₹3,11,850 crore, while consolidated EBITDA rose 10.1% to a record ₹54,067 crore. EBITDA margins contracted 210 basis points annually to 15.9%, though they improved 100 basis points from the previous quarter. The sequential margin recovery indicates that near-term cost pressures may be easing.
The divergence in performance was evident across Reliance's divisions. Jio Platforms was the primary driver, with EBITDA surging 15.1% to ₹20,865 crore on a 12% revenue increase, pushing its margin up 150 basis points to 53.3%. The retail arm saw EBITDA slip 1.1% as digital commerce investments weighed on profitability, despite a 46% surge in transactions to 568 million.
For investors, the immediate focus is shifting toward the company's planned capital markets moves. The filing of a draft red herring prospectus for a Jio Platforms initial public offering represents a critical milestone. “The proposed Jio IPO is expected to act as a significant value-unlocking catalyst, while continued investments in digital infrastructure, retail expansion and the commissioning of its new energy businesses are likely to strengthen long-term growth prospects,” said Sugandha Sachdeva, Founder of SS WealthStreet.
Reliance shares have been consolidating since retreating from highs near ₹1,600. Technically, the stock has established strong demand around the ₹1,280 support level. Analysts anticipate a near-term recovery toward the ₹1,450-1,480 resistance zone. A sustained move above ₹1,600 remains necessary to invalidate a broader double-top pattern and signal a fresh structural uptrend.
