Reliance Jio Q1 FY27 net profit rises 6.8% to ₹7,167 crore; revenue climbs 10.8% to ₹34,212 crore
Standalone revenue from operations grew 10.8% year-on-year to ₹34,212 crore, while operating margin improved to 29.1% in the June quarter.
Reliance Jio Infocomm Ltd (RJIL), the telecom arm of Reliance Industries, reported a 6.8% year-on-year rise in standalone net profit at ₹7,167 crore for the quarter ended June 30, 2026, driven by continued growth in its digital services business. The company had posted a profit of ₹6,711 crore in the corresponding quarter last year, according to its unaudited financial results.
Standalone revenue from operations rose 10.8% to ₹34,212 crore in the first quarter of FY27 from ₹30,882 crore a year earlier. Total income increased to ₹35,093 crore from ₹31,493 crore, reflecting sustained momentum in the company's core telecom and digital services operations. However, profit before tax declined sequentially to ₹9,633 crore from ₹9,827 crore in the March quarter.
Margins remain resilient despite higher operating costs
RJIL's total expenses increased to ₹25,460 crore during the quarter from ₹22,477 crore in the year-ago period, led by higher network operating expenses, depreciation and finance costs as the company continued investing in network expansion and digital infrastructure. Network operating expenses rose to ₹8,799 crore from ₹8,452 crore, while depreciation and amortisation climbed to ₹6,999 crore from ₹6,204 crore. Finance costs also increased sharply to ₹2,958 crore compared with ₹2,081 crore a year ago.
Despite the increase in costs, the company's operating margin improved marginally to 29.1% from 28.9% a year earlier, indicating stable operating efficiency. Net profit margin stood at 17.8%, compared with 18.5% in the corresponding quarter last year.
Balance sheet remains healthy
RJIL's financial position remained robust during the quarter, with net worth rising to ₹2.92 lakh crore from ₹2.68 lakh crore a year ago. The debt-equity ratio improved to 0.20 from 0.26, while the current ratio strengthened to 1.17 from 0.81, underscoring improved liquidity. The company's total debt-to-total assets ratio also eased to 0.11 from 0.13 over the same period.
The company, which operates India's largest digital services business, continued to maintain healthy operational metrics, with its debt service coverage ratio improving to 3.14 from 1.62 a year ago. RJIL said it remains focused on providing digital services, which continues to be its sole operating segment. The financial results were approved by the company's board on July 16 after a limited review by the statutory auditors.