Reliance Industries Faces Setback After Q1 Earnings
Reliance Industries Ltd., India’s largest private sector company by market value, saw its share price decline by 2.4% to Rs 1,440 apiece on the National Stock Exchange (NSE) after the company reported its Q1 earnings.
The decline in share price came after the company’s consolidated net profit rose 39% sequentially to Rs 26,994 crore during the June quarter, driven by a one-time gain from the sale of listed investments.
However, revenue slipped 7% to Rs 2.43 lakh crore, and margin expanded 80 basis points to 17.6%. Despite the mixed bag of numbers, analysts remain bullish on the company’s future prospects.
Q1 Earnings Highlights
Here are the key highlights from Reliance Industries’ Q1 earnings:
- Consolidated net profit rose 39% sequentially to Rs 26,994 crore.
- Revenue slipped 7% to Rs 2.43 lakh crore.
- Margin expanded 80 basis points to 17.6%.
What Analysts Are Saying
Analysts remain optimistic about Reliance Industries’ future prospects, citing the company’s strong performance in its telecom operations and gradual recovery in its oil-to-chemical business.
Jefferies, a global investment bank, said Reliance Industries is positioned for improved profit growth this year and in fiscal 2027.
Share Price Performance
Reliance Industries’ share price has risen 2.4% in the last 12 months and 20.5% on a year-to-date basis.
The stock has a ‘buy’ rating from 34 out of 37 analysts tracking the company, with an average 12-month price target of Rs 1,611, implying a potential upside of 9%.
Conclusion
While Reliance Industries’ Q1 earnings may have disappointed some investors, analysts remain optimistic about the company’s future prospects. The company’s strong performance in its telecom operations and gradual recovery in its oil-to-chemical business are likely to drive growth in the coming months.
