Reliance Q3FY26 Results Snapshot: Revenue, EBITDA and Margin Trends
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Quick Snapshot
- Reliance Q3FY26 revenue grew 4 percent quarter-on-quarter
- EBITDA remained flat, leading to margin contraction
- O2C segment delivered strong growth, retail remained weak
- Net profit rose faster than EBITDA due to higher other income
- Net debt reduced marginally, supporting balance sheet stability
Reliance Q3FY26 Results Snapshot: Revenue, EBITDA and Margin Trends
Reliance Industries’ Q3FY26 consolidated results present a picture of steady topline growth but limited operating leverage. While revenue growth remained healthy, margin pressure, particularly in the retail business, prevented earnings from meeting market expectations.
The quarter highlights how different business segments contributed unevenly to overall performance, with strength in Oil-to-Chemicals partially offset by continued challenges in retail and oil and gas exploration.
Consolidated Q3FY26 Performance Overview
Reliance reported quarter-on-quarter revenue growth of 4 percent, with consolidated revenue rising to Rs 2,64,905 crore from Rs 2,54,623 crore.
Despite higher revenue, EBITDA remained largely flat at Rs 46,018 crore, compared to Rs 45,885 crore in the previous quarter. As a result, EBITDA margin declined to 17.4 percent from 18 percent, reflecting cost pressures and weak segmental performance in certain areas.
Net profit increased 2.6 percent to Rs 18,645 crore, supported by higher other income, which played a key role in cushioning operating weakness.
Why Earnings Missed Expectations
The earnings miss was primarily driven by weak retail performance, which weighed on consolidated margins despite stable revenue growth.
Retail continues to be a key driver of volume growth for Reliance, but profitability in this segment faced headwinds during the quarter due to structural and cyclical factors.
Segment-Wise EBITDA Performance
Oil-to-Chemicals Emerges as the Strongest Segment
The O2C segment reported a 10 percent quarter-on-quarter increase in EBITDA to Rs 16,507 crore, making it the standout performer in Q3FY26.
Growth in this segment was supported by:
- Better refining performance
- Benefit of a weaker Indian rupee
These positives were partly offset by weakness in the petrochemicals business, which limited further upside.
Retail Segment Remains the Biggest Drag
Retail EBITDA rose just 1 percent to Rs 6,915 crore, reflecting muted operating momentum.
More importantly, retail EBITDA margin declined to 7.06 percent, marking the lowest level in the last 13 quarters.
Several factors contributed to this pressure:
- High base effect, as the festive season last year was fully concentrated in Q3FY25
- In FY26, festive demand was split between Q2FY26 and Q3FY26
- Continued losses in JioMart Quick Commerce
- Impact of the demerger of Reliance Consumer Products
Together, these factors limited margin recovery despite stable revenues.
Oil and Gas Exploration Sees Decline
The oil and gas exploration segment reported a 3 percent decline in EBITDA to Rs 4,857 crore.
This was primarily due to:
- Lower realisation
- Decline in production volumes
The segment remains sensitive to operational and pricing dynamics, which impacted performance during the quarter.
Other Income Supports Bottom Line
One of the key reasons net profit growth outpaced EBITDA growth was a sharp rise in other income.
Other income increased 10 percent to Rs 4,914 crore, providing a meaningful boost to the bottom line and helping offset margin pressure at the operating level.
This underscores the role of non-operating income in supporting consolidated profitability during periods of operating stress.
Balance Sheet Update: Net Debt Improves
Reliance’s balance sheet showed modest improvement during Q3FY26.
Net debt declined to Rs 1,17,102 crore from Rs 1,18,545 crore on a quarter-on-quarter basis, reflecting disciplined financial management and stable cash generation.
Lower net debt strengthens financial flexibility and provides comfort amid mixed operating conditions.
What This Means for Investors
Reliance’s Q3FY26 results indicate that while topline growth remains intact, margin expansion is currently constrained by segment-specific challenges, especially in retail.
Key takeaways for investors include:
- O2C continues to provide earnings stability
- Retail margin recovery may take time
- Net profit resilience is supported by higher other income
- Balance sheet position remains steady
Given Reliance’s heavy weight in benchmark indices, its performance continues to influence broader market sentiment.
Frequently Asked Questions
Did Reliance Industries meet earnings expectations in Q3FY26?
Earnings missed expectations mainly due to weak retail performance and margin pressure.
Which segment contributed most to EBITDA growth?
The Oil-to-Chemicals segment was the strongest contributor, with EBITDA rising 10 percent.
Why did retail margins fall sharply?
High base effect, quick commerce losses, and the demerger of Reliance Consumer Products impacted retail profitability.
How did other income affect results?
Other income rose 10 percent and helped net profit grow faster than EBITDA.
Is Reliance’s debt position improving?
Yes, net debt declined marginally on a quarter-on-quarter basis.
Final Takeaway
Reliance’s Q3FY26 performance highlights the resilience of its diversified business model, even as margin pressure persists in certain segments. Strength in O2C and higher other income helped support overall profitability, while retail remains an area to watch closely.
For investors tracking large-cap earnings and sector trends, Swastika Investmart, a SEBI-registered brokerage, offers strong research capabilities, detailed earnings analysis, and responsive customer support to help navigate market decisions with confidence.
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