RELIANCE INDUSTRIES SLIPS OVER 2% AFTER Q1 RESULTS: FIND OUT WHY BROKERAGES REITERATE ‘BUY’
Reliance Industries Ltd. (RIL) saw its stock drop by more than 2% following the release of its Q1 FY26 results. Despite the decline, top brokerage firms continue to maintain their ‘Buy’ ratings on the stock, citing long-term growth potential and stable fundamentals.
RELIANCE Q1 FY26: KEY HIGHLIGHTS
Net Profit: ₹17,265 crore (up 8.4% YoY)
Revenue: ₹2.45 lakh crore (flat YoY)
EBITDA: ₹43,620 crore (up 3% YoY)
Jio Platforms: ₹5,230 crore net profit, 10.6% YoY growth
Retail Segment: ₹3,600 crore net profit, 18.8% YoY growth
WHY DID THE STOCK FALL DESPITE A STRONG PROFIT?
The market reacted negatively to margin pressure in the oil-to-chemicals (O2C) segment and muted growth in revenues. Analysts suggest that while the profits rose, they were slightly below street expectations, leading to short-term corrections.
BROKERAGE VIEW: WHY ‘BUY’ RATINGS CONTINUE
1. Long-Term Growth Outlook
Brokerages including Jefferies, CLSA, and Morgan Stanley reaffirm their 'Buy' stance due to RIL’s diversified business model, which includes strong retail and telecom arms.
2. Retail and Jio Segments Continue to Outperform
Jio Platforms posted healthy net additions and strong ARPU growth. Reliance Retail reported consistent revenue growth, backed by expanding store networks and product categories.
3. Green Energy Initiatives
Analysts are optimistic about the company's investments in renewable and green energy, which are expected to contribute significantly in the coming quarters.
WHAT SHOULD INVESTORS DO?
Short-term volatility is expected, but long-term fundamentals remain intact. Investors with a medium- to long-term horizon are advised to accumulate on dips.
FREQUENTLY ASKED QUESTIONS (FAQ)
Why did Reliance Industries’ stock fall after Q1 results?
Despite strong profits, the stock fell due to pressure on refining margins and revenue growth slightly missing expectations.
Is Reliance Industries still a good stock to buy?
Yes. Most brokerages continue to rate it a ‘Buy’ due to its strong telecom, retail, and energy diversification.
What was Reliance’s Q1 FY26 net profit?
Reliance reported a consolidated net profit of ₹17,265 crore for Q1 FY26, up 8.4% year-over-year.
Which segments contributed most to Reliance’s growth?
Retail and Jio Platforms drove significant growth, with both segments reporting healthy profits and margin expansion.
Published on: July 20, 2025
Published by: PAVAN
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