Reliance Industries Ltd. (RIL) is expected to have a solid earnings improvement of roughly 20 per cent in the second quarter of June 2026 with the O2C-based business driving the growth, according to analysts. Refining and petrochemical activities will help the company to generate a lot of profits and retail and oil & gas are expected to have some soft quarters in the quarter.
The June quarter results will also be of particular interest to investors, who will also be closely looking at management’s forecast for several key growth drivers in the future. Market participants will be looking forward to the results of Reliance Jio's tariff initiative, the progress of new energy initiatives at the company’s new energy initiative, capital expenditure plans and the preparations for Jio's imminent IPO as well, and with the company to go public.
Based on the consensus estimates of Bloomberg, Reliance Industries is expected to generate consolidated revenue of around Rs 3,01,024 crore for the June quarter, up 2.4 percent sequentially from the March quarter (Rs 2,94,059 crore).
Operating performance will also be better. Earnings before interest, taxes, depreciation and amortisation (EBITDA) will rise by about 5 percent quarter-on-quarter to Rs 46,367 crore from Rs 44,141 crore in the previous quarter. The EBITDA margin will also increase to 15.4% from 15% in the March quarter, which indicates more operational efficiency.
Reliance’s bottom line is expected to see a much longer-term improvement. The analysts estimated that consolidated net profit could increase by nearly 20% sequentially to around Rs 20,451 crore from Rs 16,971 crore in the previous quarter. And the expected growth is driven by better profitability in the core energy business and better operating margins.
The biggest contributor to expected earnings growth is likely to be the company’s Oil-to-Chemicals (O2C) segment. It is expected to have EBITDA of about Rs 16,146 crore, an 11% sequential rise from Rs 14,520 crore in the March quarter.
The improvement is expected to be driven by higher gross refining margins (GRMs) at Reliance's Special Economic Zone (SEZ) refinery, along with stronger petrochemical spreads supported by improving global demand and favourable product pricing. Recovering refining margins should help to offset some of the consumer-facing businesses.
Research analysts say the retail segment will continue to be under pressure due to moderate consumer spending and ongoing investment in expansion. In the same way, the oil and gas business is also expected to be relatively low in the quarter as they will be lower in production and softer in realized revenue.
Besides the financial numbers, investors will be interested in management comments regarding Jio’s future tariffs, subscriber growth in monetisation opportunities, renewable energy investment and capital allocation strategy. And these topics could be crucial in determining market sentiments, especially as Reliance prepares for the proposed listing of Jio and continues to grow in clean energy and digital services.
The June quarter is likely to indicate a better momentum for Reliance Industries as a whole and the O2C business recovery is a strong foundation for earnings growth and the long-term strategic outlook for the company has to be better understood to investors.
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