Author: Nishtha Mehrotra | EQMint
Synopsis:
- Reliance Industries’ Q2 operating EBITDA increased 23% to approximately ₹56,600 crore, beating consensus estimates by 9%.
- Oil-to-Chemicals (O2C) EBITDA surged 68%, supported by stronger fuel cracks and improved petrochemical margins.
- The company expects new energy projects to begin contributing earnings as early as FY28, with manufacturing capacity expansion underway.
Reliance Industries Limited reported a strong second-quarter performance, with operating EBITDA rising 23% to approximately ₹56,600 crore, exceeding market consensus estimates by 9%.
The Oil-to-Chemicals (O2C) business emerged as the biggest growth driver, recording a 68% increase in EBITDA. Strong fuel cracks, improved petrochemical margins and favourable product spreads supported the segment’s performance. The company expects these favourable conditions to continue while global geopolitical tensions persist.
Reliance also indicated progress in its New Energy business, with earnings contributions expected to begin as early as FY28. Its manufacturing expansion plans include battery cell capacity and two gigawatt-scale transmission lines targeted for Q3 FY27.
The results received a largely constructive response from brokerages, although market participants also noted that Reliance’s share price has remained relatively flat over the past five years.
Source: https://sqst.in/muubp
Disclaimer: This article is for information purposes only and is not investment advice.
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