RIL Share Price Rises After In-Line Q2 Results: A Detailed Analysis
Reliance Industries Ltd. share price jumped nearly 3% during early trade on Monday after its second quarter results, which came after market hours last week, met Street expectations. The oil-to-telecom conglomerate reported a 33% sequential fall in consolidated net profit for the quarter ended September to Rs 18,165 crore.
Understanding the Q2 Results
The fall in profit followed an exceptional other income of Rs 15,119 crore in the previous quarter, which included Rs 8,924 crore from the sale of listed investments, the company said. Other than retail, all other segments reported largely in-line set of numbers.
The oil-to-chemicals business posted Ebitda of Rs 15,008 crore, up from Rs 14,511 crore in the preceding quarter. The increase was driven by stronger fuel cracks and improved polymer spreads, partly offset by weaker polyester margins. To know more about oil to chemicals business, click here.
Retail Business Performance
The retail business recorded Ebitda of Rs 6,817 crore, compared with Rs 6,381 crore in the June quarter. Festive demand lifted sales across grocery, fashion and consumer electronics. This is a significant indicator of the company’s growth in the retail sector. For more information on retail business in India, visit our website.
Reliance Jio Platforms’ Performance
Reliance Jio Platforms’ revenue and profit rose 4%. This is a positive sign for the company’s telecom business. To learn more about Reliance Jio Platforms, click here.
Capex and Future Outlook
Capex jumped to a 10-quarter high to Rs 40,000 crore. Analysts at Morgan Stanley said the FY26 guidance was optimistic and the setup for the December quarter “looks very strong, notably retail and fuel refining”.
Market Reaction
Reliance share price advanced over 3% intraday to Rs 1,460 apiece. The benchmark Nifty 50 was up 0.8%. RIL was the lead contributor on the index. The market cap added Rs over 52,000 crore.
The stock has risen 7% in the last 12 months and 20% on a year-to-date basis. The relative strength index was at 58. To understand more about Nifty 50 index, visit our website.
Analyst Ratings and Price Targets
Of the 38 analysts tracking RIL, 36 have a ‘buy’ rating and two have ‘sell’, according to Bloomberg data. The average of 12-month price targets indicates a potential upside of 16% over the previous close. For more information on stock market analysis, click here.
Conclusion
In conclusion, the Q2 results of Reliance Industries Ltd. have been in-line with Street expectations. The company’s retail business and Reliance Jio Platforms have shown significant growth. The capex has jumped to a 10-quarter high, indicating a strong future outlook. To stay updated with the latest Indian stock market news, visit our website regularly.
