Reliance Industries shares slip on reporting highest-ever profit; should you buy, sell, or hold?

Jio Platforms posted a 25 percent rise in profit to Rs 7,110 crore, with EBITDA up nearly 24 percent to Rs 18,135 crore. Net subscriber additions remained strong at 9.9 million during the quarter, taking the total to 498.1 million.

Reliance Retail’s revenue rose 11.3 percent from a year earlier to Rs 84,171 crore, with EBITDA rising 12.7 percent to Rs 6,381 crore. Consumer brands under the FMCG business reported sales of Rs 11,450 crore in just their second year.

The oil-to-chemicals (O2C) business saw revenue dip 1.5 percent to Rs 1.55 lakh crore from a year earlier due to lower crude prices and planned maintenance shutdowns. However, EBITDA rose 11 percent to Rs 14,511 crore due to favourable margins on domestic fuel retail, and improvements in transportation fuel cracks.

On the new energy business of RIL, which is focused on building a comprehensive and integrated renewable energy ecosystem, Karan Suri, Senior Vice President, New Energy, noted that the new energy business will become a self-funded platform in a few years through its profitability and monetisation.

Should you buy, sell, or hold?

Motilal Oswal has maintained a ‘Buy’ rating on Reliance Industries with a target price of Rs 1,700, expecting strong growth across key segments. Reliance Jio is seen as the main driver, with the brokerage expecting a 19 percent EBITDA CAGR over FY25-28, supported by a likely tariff hike, market share gains, and continued expansion.

According to the brokerage, Reliance Retail’s growth is also expected to recover, with 14-15 percent CAGR in revenue and EBITDA. A rebound in the oil-to-chemicals segment, aided by better refining margins, is likely to lift overall earnings, with RIL’s consolidated EBITDA and PAT projected to grow at an 11 percent annual average over FY25–27.

Morgan Stanley maintained its ‘overweight’ rating with a target price of Rs 1,617. The broking house noted the optimistic guidance from the company, including a plan to double earnings by 2029, despite some near-term misses in retail revenue growth and fuel refining performance. Going ahead, Morgan Stanley believes that the new energy and telecom segments, along with a strong balance sheet, are key positives for RIL.

Jefferies has reiterated its ‘buy’ rating on Reliance Industries with a target price of Rs 1,726. While the oil-to-chemicals (O2C) segment was impacted by a refinery shutdown, the brokerage sees a constructive outlook for refining going forward.

According to Jefferies, investor focus will shift to the upcoming AGM, with hopes of a Jio listing following a likely tariff hike. The brokerage projected an EBIDTA growth for the full financial year 2026 at 11 percent.

Japan-based Nomura also kept its bullish view intact, with a ‘buy’ call on Reliance Industries and a target price of Rs 1,600 per share.

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