Strong fuel cracks running at double their historical averages elevated the company's refining performance, with management targeting ₹80,000 crore in annual segment earnings. Conversely, the retail branch saw muted revenue growth and compressed margins due to digital expansion, while the telecom arm posted higher average revenue per user. Net market capitalization for the core non-retail and non-telecom businesses stands at ₹5.5 trillion after accounting for holding company discounts.
Key points
Global oil demand headwinds will necessitate a pivot of core corporate momentum toward al…: Global oil demand headwinds will necessitate a pivot of core corporate momentum toward alternative energy operations by FY28.
Digital and telecom operations delivered steady gains with quarterly earnings increasing…: Digital and telecom operations delivered steady gains with quarterly earnings increasing 5% to reach ₹21,879 crore.
Non-telecom and non-retail business segments hold an aggregate net market capitalization…: Non-telecom and non-retail business segments hold an aggregate net market capitalization of ₹5.5 trillion under current analyst valuations.
Sources checked by our analysis pipeline: 1
Reliance Industries Ltd’s investors are in a dilemma after the September quarter (Q2FY27) results: should they celebrate the strong earnings of the oil-to-chemicals (O2C) segment or worry about the weak profitability of the retail business? This predicament assumes even more relevance as the O2C segment currently enjoys abnormal profit, raising doubts about its sustainability.
The Q2 refining margin in the two main transportation fuels – petrol and diesel – is at least twice the five-year average. In this backdrop, the O2C segment Ebitda per tonne (based on production meant for sale) soared 68% year-on-year and 28% quarter-on-quarter to ₹13,924. This mainly drove Reliance’s consolidated Ebitda growth of 23% year-on-year, surpassing most brokerages’ expectations, to ₹56,616 crore.
Global oil demand outlook is weak for 2026. A rebound is anticipated in 2027, but demand is still likely to be marginally lower than the 2025 level. Even if the geopolitical scenario improves, weak demand is not good news for margins. Also, O2C is usually assigned lower valuation multiples because of its commodity nature, so a few quarters of high profit do not lead…
Having taken the helm from Tim Cook in September, John Ternus must now reassure Wall Street as rising component expenses threaten to compress margins. While recent hardware introductions like the foldable iPhone Duo demonstrate continued consumer demand, decelerating growth across core services and iPhones presents an immediate challenge. Investors are watching closely to see how Apple navigates escalating competition and maintains its measured artificial intelligence strategy without compromising profitability.
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The Union Ministry of Civil Aviation has established the legal authority to step in and regulate commercial flight tariffs during extraordinary circumstances to safeguard the public interest. This intervention framework addresses ongoing consumer distress surrounding steep ticket prices fueled by surging crude oil and aviation turbine fuel costs. Official pricing mandates will be strictly time-limited and tailored to match prevailing conditions.