This article first appeared on GuruFocus.

Release Date: July 17, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

Reliance Industries Ltd (WBO:RLI) reported a 25% increase in top-line revenue, driven by higher oil prices and strong performance in Jio and retail segments.

EBITDA increased by 10% to over 54,000 crores, indicating strong operational performance.

The company maintained a healthy balance sheet with a slight reduction in net debt and a strong cash flow to support CapEx initiatives.

Jio’s subscriber base grew to 533 million, with significant growth in 5G users and fixed broadband connections.

Retail business showed a 12% revenue growth, with a focus on expanding digital commerce and omnichannel platforms.

Negative Points

The company faced challenges in crude acquisition due to supply chain disruptions in the Middle East, impacting refinery operations.

EBITDA margins were affected by higher costs, including freight and insurance, and under-recoveries in retail.

KGD6 production and price realization were lower, impacting the oil and gas segment’s performance.

Retail EBITDA margins decreased due to investments in digital commerce and infrastructure, leading to short-term pressure on profitability.

The company faced operational challenges in the petrochemical segment due to high raw material prices and supply constraints.

Q & A Highlights

Q: Can you provide insights into the growth potential of digital services within the telecom sector, and how do you see the margin profile evolving? A: Unidentified_2: The growth in digital services is promising, with potential for further monetization. While currently operating at lower margins compared to connectivity, as revenue grows, operating leverage will improve, potentially leading to higher margins in the future.

Q: What factors are influencing the ARPU growth in the telecom sector, and why is it not improving despite positive tailwinds? A: Unidentified_2: The underlying ARPU is not under pressure. The mix improvement in favor of fixed broadband and promotional offers in the home business are influencing ARPU. Without tariff actions, a 4% to 5% ARPU improvement is expected organically.

Q: How long will the investments in dark stores for JioMart continue, and what are the success metrics for this business? A: Unidentified_3: Investments in dark stores will continue for the next 9 to 12 months, focusing on market expansion. Success will be measured by disciplined growth, profitability, and leveraging customer data and supply chain advantages to differentiate from competitors.

Q: Can you elaborate on the strategy for achieving the target of doubling retail EBITDA over the next three years? A: Unidentified_3: The strategy involves growing online business share, leveraging operating leverage from scale, and focusing on absolute EBITDA growth rather than margin targets. Revenue growth will be driven by online expansion and efficient use of existing infrastructure.

Q: What is the outlook for the oil and gas sector, particularly regarding crude availability and refining margins? A: Unidentified_6: Crude availability remains uncertain, but the team is confident in managing volatility. Refining margins are expected to remain robust due to structural shortages and strong cracks, despite challenges in crude sourcing and logistics.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.