Reliance Industries Share Price Jumps 7.5% to 9-Month High After Record Q2 Results

Reliance Industries shares jumped 7.5% to Rs 1,252.40 in early trade on Monday, reaching their highest level in nine months, following the company’s record quarterly profits. The stock’s excellent performance also made it the largest contributor to the Nifty 50’s gains and the most frequently traded share on both the NSE and BSE.

The rally increased Reliance Industries’ market capitalization over Rs 17 lakh billion. The stock was also on track for its greatest single-day increase since March 2020, following the company’s July-September quarter earnings and favorable brokerage ratings.

The gains spread to the broader market. At around 9:40 a.m., the Sensex had increased 966 points, or 1.3%, to 75,426. The Nifty was up 255 points, or 1.1%, to 23,309.

Reliance Industries Share Price Rises After Record Q2 Earnings

Reliance Industries achieved its best-ever quarterly financial performance in Q2 FY27, with sales, EBITDA, and net profit all setting new records. Consolidated sales jumped 28% year on year to Rs 3.62 lakh crore, while EBITDA grew 24% to Rs 62,409 crore.

Net profit increased 34% to Rs 29,550 crore in the July-September period. Growth in the oil-to-chemicals (O2C) industry, digital services, and retail activities boosted the company’s overall performance.

The O2C segment delivered its best quarterly performance, with sales increasing 44.2% year on year to Rs 2.32 lakh billion. EBITDA for the firm increased 67.9% to Rs 25,203 million.

Refining circumstances also helped the division’s performance. Transportation fuel cracks, which are used to calculate refining margins, climbed to three to 3.7 times their levels a year ago and hit historic highs throughout the quarter.

Reliance’s digital services segment also saw development. Jio Platforms reported an 11.3% yearly growth in sales to Rs 47,485 crore, while EBITDA increased by 16.6% to Rs 21,879 crore. Subscriber growth, greater average revenue per user, and the expansion of digital services all helped to drive the results forward.

Reliance Industries Share Price Gets Support From Brokerages

Goldman Sachs and Nomura maintained their Buy ratings on Reliance Industries after evaluating the quarterly results. Both noted excellent refining profitability and ongoing growth in telecom, while pointing to lower performance in retail.

Goldman Sachs set a target price of Rs 1,840 per share, suggesting a 58% increase from Friday’s closing price of Rs 1,164.90. According to the brokerage, Reliance’s Q2 EBITDA beat expectations by 9%, owing mostly to better O2C earnings.

However, Goldman Sachs anticipates refining margins to fall in the December quarter. Higher expenses for very large crude carriers (VLCCs), which carry crude oil, may put pressure on margins, while processing discounted heavy crude may mitigate the impact.

Nomura maintained its Buy rating, setting a target price of Rs 1,560 per share. It attributed the record earnings to refining cracks hitting their greatest levels in decades, and added that consolidated EBITDA climbed 19% from the previous quarter, above expectations by 9%.

Both brokerages highlighted retail issues. The shift in seasonal demand and investments in internet commerce had an impact on the company’s success.

Reliance Industries’ recent share price increase came after the company reported record quarterly earnings and good refining results. Investors will also be monitoring to see if the company can continue its growth pace as refining margins begin to moderate and its retail sector grapples with current issues.