Shares of Reliance Industries (RIL) experienced a significant rally on Monday, closing up 11.60% at Rs 1,300 on the NSE. This surge represents the company's largest single-day gain since April 2020, according to Bloomberg data.
The sharp increase boosted the market capitalization (m-cap) of India's most valuable company by approximately Rs 1.83 lakh crore, bringing its total valuation closer to Rs 17.6 lakh crore.
Robust Q2 Financial Performance Fuels Investor Confidence
The impressive stock performance follows RIL's announcement of its second-quarter (Q2 FY27) financial results. The Mukesh Ambani-led conglomerate reported a consolidated net profit of Rs 25,548 crore, marking a substantial 40.64% year-on-year (YoY) increase compared to Rs 18,165 crore in the corresponding quarter last year.
Revenue from operations also saw strong growth, rising 28.57% YoY to Rs 3,32,861 crore in Q2 FY27, up from Rs 2,58,898 crore in Q2 FY26. Alongside these earnings, RIL's board approved a resolution to raise up to Rs 15,000 crore through the issuance of listed, secured or unsecured, redeemable non-convertible debentures (NCDs) via a private placement basis.
Jio Platforms Continues Strong Growth Trajectory
Newly-listed Jio Platforms Ltd, RIL's digital services and telecommunications arm, also reported robust quarterly results. The company posted consolidated quarterly revenue of Rs 47,485 crore, an 11.3% increase YoY. Quarterly EBITDA grew 16.6% YoY to Rs 21,879 crore, with margins improving by 250 basis points (bps) YoY, driven by revenue growth and operating leverage.
Jio reported double-digit revenue growth across both its connectivity and digital services businesses, at 11% and 16% respectively. The company generated free cash flow (EBITDA less cash capital expenditure) of Rs 32,130 crore in the first half of FY27, a 98% increase from the prior-year period.
Key Milestones for Jio
- Subscriber Growth: Jio's 5G mobility subscriber base surpassed 300 million.
- Fixed Broadband: Fixed broadband subscriber base exceeded 30 million.
- Total Subscribers: The total subscriber base reached 542.4 million, with 36 million net additions over the trailing 12 months.
- ARPU Increase: Average revenue per user (ARPU) for Jio increased to Rs 218.8.