Reliance Industries shares jump nearly 8% after record Q2 results; top Nifty gainer, biggest index contributor

The Mukesh Ambani-led conglomerate's market capitalisation stood at Rs 16.94 lakh crore. The rally in Reliance shares drove a broader market surge. At around 10.45 am, the Sensex was up 1,050 points, or 1.4 percent, at 75,509, while the Nifty gained 290 points, or 1.3 percent, to trade at 23,343. Reliance Industries reported its strongest-ever quarterly financial performance for the July-September quarter (Q2 FY27), with record revenue, EBITDA and net profit, driven by robust growth in its oil-to-chemicals (O2C) business, digital services and retail operations.

Consolidated revenue surged 28 percent year-on-year to an all-time high of Rs 3.62 lakh crore, while EBITDA increased 24 percent to a record Rs 62,409 crore. Net profit jumped 34 percent to Rs 29,550 crore, also a quarterly record. The O2C business delivered its strongest-ever quarterly performance, with revenue rising 44.2 percent year-on-year to Rs 2.32 lakh crore and EBITDA surging 67.9 percent to Rs 25,203 crore.

Transportation fuel cracks, a measure of refining margins, rose 3 to 3.7 times from a year earlier, reaching historic highs during the quarter. Reliance's digital services business also recorded growth, with Jio Platforms reporting an 11.3 percent year-on-year increase in revenue to Rs 47,485 crore. Its EBITDA rose 16.6 percent to Rs 21,879 crore, supported by subscriber additions, higher average revenue per user and expansion in digital services.

Goldman Sachs and Nomura maintained their Buy ratings on Reliance Industries following the company's record quarterly performance, citing strong refining earnings and steady growth in telecom, even as retail performance remained relatively weak. Goldman Sachs assigned a target price of Rs 1,840 per share, implying 58 percent upside from Friday's closing price of Rs 1,164.90. The brokerage said Reliance's Q2 EBITDA beat its estimates by 9 percent, led by strong O2C performance.

However, it expects refining margins to moderate in the December quarter due to higher very large crude carrier (VLCC) freight costs, partly offset by processing discounted heavy crude. Nomura also retained its Buy rating, with a target price of Rs 1,560 per share. The brokerage attributed Reliance's record earnings to multi-decade-high refining cracks and noted that consolidated EBITDA rose 19 percent sequentially, beating estimates by 9 percent.

Both brokerages highlighted steady growth in telecom, while pointing to weakness in Reliance Retail due to the shift in festive demand and investments in digital commerce.