Preview: Ambani's Reliance set for profit jump on refining, Jio boost

Jio Platforms

30/10/2026 06:27

By Mridula Kumar and Bharath Rajeswaran
Oct 30 (Reuters) - Billionaire Mukesh Ambani's Reliance Industries RELI.NS is expected to report a sharp quarterly profit rise on Friday, as strength in its mainstay oil-to-chemicals and digital businesses outweighs weakness in retail.
Reliance operates the world's largest refining complex in western India, and has benefited from Brent crude rising about 60% since the US-Israeli war with Iran broke out at the end of February. Oil-to-chemicals accounts for more than half of the company's revenue. 
"Record refining margins and higher refinery utilisation should bolster O2C profitability, while telecom earnings will benefit from an extra day in the quarter," said Bineet Banka, analyst at Nomura. 
The earnings come at the end of a week that saw a blockbuster listing from Reliance's telecom-to-digital arm Jio Platforms JIOP.NS, making it India's second-most valuable listed company. 
The results would give investors the first look at the telecom and digital arm's earnings since the trading debut.
Reliance's consolidated net profit is forecast to rise 17.5% year-on-year to 213.48 billion rupees ($2.2 billion) for the quarter ended September, with revenue rising 28%, according to LSEG-compiled estimates.
Kotak Institutional Equities says O2C operating profit would surge 47%, driven by strong earnings at the refinery, lower-cost US ethane feedstock and a weaker rupee.
"Refining and petchem margins remain strong, while solar commissioning could provide a near-term catalyst," analysts led by Sanjay Mookim at J.P.Morgan said.
Retail, however, is likely to remain a weak spot amid margin pressure. Motilal Oswal sees Jio EBITDA rising 2.8%, but retail profit falling 3% on lower-margin quick-commerce deliveries.     
Reliance shares were down 0.3% at 1,163.4 rupees as of 11:35 IST, extending a 26% year-to-date slide versus the Nifty 50's .NSEI 12% fall. 
JPMorgan said investors have shrugged off buoyant O2C margins, fretting over retail valuation pressure, holding company discount and uncertainty over whether renewables investments will add meaningful value in the near term.

     
     
($1 = 95.1900 Indian rupees)

 (Reporting by Mridula Kumar and Bharath Rajeswaran in Bengaluru; Editing by Mrigank Dhaniwala)
 ((mridula.kumar@thomsonreuters.com))