Shares of Reliance Industries Ltd (RIL) fell by as much as 2.39% to ₹1,440.60 apiece on the NSE on Monday, July 21, despite the company reporting a sharp surge in quarterly profit. The dip comes shortly after the Mukesh Ambani-led conglomerate posted its Q1 FY26 results on Friday, July 18.
Q1 FY26 Financial Highlights:
- Net Profit: ₹26,994 crore, up 78% YoY from ₹15,138 crore
- Revenue from Operations: ₹2,48,660 crore, up 5% from ₹2,36,217 crore
- EBITDA: ₹42,905 crore, up 11%
- EBITDA Margin: 17.25%, improved by 80 basis points
The massive jump in net profit was largely attributed to a 280% surge in other income, which stood at ₹15,119 crore for the quarter. This included ₹8,924 crore in gains from the sale of listed investments, most notably from multiple tranches of Reliance’s stake in Asian Paints.
Segment-Wise Performance:
🔹 Jio Platforms (Telecom Arm):
- Net Profit: ₹7,110 crore (+25% YoY)
- Revenue: ₹41,054 crore (+19% YoY)
- EBITDA: ₹18,135 crore (+24% YoY)
- ARPU: ₹208.8 per user/month (+15% YoY)
🔹 Reliance Retail Ventures:
- Net Profit: ₹3,271 crore (+28% YoY)
- Revenue: ₹84,171 crore (+11% YoY)
- EBITDA: ₹6,381 crore (+13% YoY)
- EBITDA Margin: 8.7%, up by 20 basis points
- New Stores Opened: 388
- Total Stores: 19,592
- Retail Space: 77.6 million sq. ft
- Customer Base: 358 million
Market Reaction
Despite the robust earnings report, investors seemed cautious, possibly due to:
- Concerns over the one-off nature of other income gains
- Broader market volatility or sectoral concerns
- Profit-booking after recent gains
Analysts may look for more sustainable growth in core operating income and future guidance before revising stock outlooks. However, the overall quarterly performance of Reliance Industries across telecom, retail, and energy remains strong and stable.
