RIL shares fell over 1% on Monday after the conglomerate reported a sharp drop in quarterly profit, with the stock opening at ₹1,326.80 on BSE and trading around ₹1,333.80, down about 0.45% by mid-morning. Despite the weak quarterly performance, brokerages maintained bullish ratings citing strong Jio and retail growth, with Elara Capital upgrading Reliance to Buy from Accumulate, citing an 8% correction in the stock over the past six months as an attractive entry point. The brokerage revised its target price to ₹1,619, after cutting earnings estimates to account for weaker petrochemical margins and slower retail growth. However, technical analysis shows a range-bound to mildly bearish structure on the weekly chart, with the stock failing to sustain above the ₹1,600 resistance zone and facing strong supply pressure.
According to latest Q4 FY26 results, Reliance Industries delivered a record annual PAT of ₹95,610 crore, making it the first Indian company to cross $10 billion in annual profit. However, the quarterly performance showed pressure with consolidated net profit declining 12.6% YoY to ₹16,971 crore in Q4 FY26, compared to ₹19,407 crore in Q4 FY25. The Q4 revenue from operations rose 12.9% to ₹2,98,621 crore, while gross revenue climbed 13% to ₹3,25,290 crore. Despite the quarterly headwinds, the full-year milestone represents a historic achievement for India's largest conglomerate, with FY26 revenue hitting ₹3,25,290 crore and the company crossing the ₹11.7 lakh crore annual revenue threshold.
The Oil-to-Chemicals (O2C) segment faced significant challenges in Q4 FY26, with O2C EBITDA falling 3.7% YoY to ₹14,520 crore despite O2C revenue rising 12.4% YoY to ₹1,84,944 crore. As per multiple reports, the company faced disruptions and higher cost lines, including freight and insurance expenses linked to disruptions around the Strait of Hormuz, elevated gas costs from lower captive availability, and weak petrochemical spreads. The Q4 O2C segment still contributes approximately 55-60% of consolidated revenue despite consumer businesses now dominating EBITDA. The management has reiterated that only the DTA refinery will be impacted by special additional excise duties on diesel, ATF, and gasoline. The energy business environment remains challenging with elevated crude sourcing costs, rising logistics and fuel expenses, and limited access to advantaged crude largely offsetting benefits of stronger transportation fuel cracks.
Consumer businesses provided critical support during the challenging quarter, with Reliance Retail's FY26 revenue reaching ₹3.7 lakh crore and hitting the 20,000 store milestone. As reported by The Economic Times, retail revenue grew 11% year-on-year, though margin pressure from investments in online channels kept profit growth modest at 3%. The Jio Platforms delivered PAT of ₹7,022 crore (+26% YoY) with ARPU rising to ₹214/month, while Jio 5G subscriber base reached 268 million (total: 524 million). Looking ahead, analysts expect this trend to continue with online remaining the main growth driver potentially keeping revenue growth in double digits while EBITDA growth stays in higher single digits.
The company is positioning itself for a massive green energy transformation with a $3 billion Samsung deal for green ammonia starting in 2029, effectively de-risking the company's massive Green Energy CAPEX. Unlike most green hydrogen players dependent on Chinese solar/electrolyzer parts, Reliance is building a fully indigenous ecosystem—from solar panels to licensed electrolyzer tech from Nel (Norway) and Stiesdal (Denmark). As green energy projects move from incubation to operation, the stock may no longer be valued as a cyclical "oil play" but as a structural "ESG-growth play." The Jio IPO is expected to be one of the largest in Indian capital market history, with management hinting at a mid-2026 timeline for the public offering. Despite the strong annual performance, the stock closed at ₹1,327.65, down 1.15% ahead of results, reflecting market caution about near-term O2C volatility.
