Reliance Industries sheds over ₹70,000 crore in market cap post Q1 results

RIL's market cap declined by ₹72,805 crore to ₹19.26 trillion on the BSE in intra-day trade, as stock slipped 3.6 per cent post Q1 results

Reliance Industries (RIL) has erased over ₹70,000 crore in market capitalisation, as the stock price of the most valuable Indian firm slipped 3.6 per cent in Monday’s intra-day trade in an otherwise stable market after reported weak earnings. RIL has announced its June quarter (Q1FY26) results on Friday post-market hours. 

 

RIL’s market capitalisation has declined by ₹72,805 crore to ₹19.26 trillion on the BSE in intra-day trade. The company’s market capitalisation stood at ₹19.99 crore on Friday, July 18.

 

With Monday's decline, RIL has corrected 8 per cent from its current month high of ₹1,551 on July 7, 2025. The stock had hit a 52-week high of ₹1,589.50 on July 19, 2024.

 

RIL’s Q1FY26 consolidated earnings before interest, taxes, depreciation, and amortisation (Ebitda) declined 2 per cent quarter-on-quarter (Q-o-Q) (+11 per cent year-on-year (Y-o-Y) to ₹42,900 crore, due to weaker performance in Retail and oil-to-chemicals (O2C).

 

Reliance Retail’s operational Ebitda came in below analysts’ estimate, due to weaker-than-expected revenue growth. Consolidated O2C Ebitda declined 4 per cent Q-o-Q, as higher retail fuel margins and product cracks were offset by lower volumes due to a planned shutdown. 

 

The key positive in Reliance Jio was margin expansion along with 5G adoption progressing well with 210 million (versus 191 million in Q4) subscribers (42 per cent of the overall base) already migrated. The company continues to see 5G as a medium to long-term enabler of higher data usage and APRU driver along with its effort on home broadband, wherein it added 2.6 million subscribers in the quarter through acceleration of JioAirFiber. 

 

The company also has been leveraging UBR (Unlicensed band radio) to deploy fixed wireless access, which will bring scalability to the same. Total fixed subscriber base stood at 20 million, including 7.4 million from JioAirFiber. Key monitorable would be further tariff hike ahead, according to ICICI Securities.

 

Meanwhile, Motilal Oswal Financial Services reduces its FY26-27 Ebitda by 1-2 per cent and profit after tax (PAT) by 4 per cent each due to broad-based earnings cuts. While Q1 was soft, the brokerage firm remains sanguine on RIL’s growth prospects across segments.

 

However, YES Securities recommend a BUY rating on RIL with a target price of ₹1,640 per share. Expectation of elevated capex levels due to the ongoing 5G rollout, planned petrochemical capacity expansion, and planned foray into renewable energy and acquisitions in retail. However, in the longer run, investments in petrochemical and renewable capacities, along with the 5G rollout, Retail growth, and New energy contribution have the potential to drive revenue growth, the brokerage firm said in a result update.

 

Analysts at JM Financial Institutional Securities reiterate 'Buy' rating on RIL with a target price of ₹1,700 as the brokerage firm expects net debt to decline gradually, and also because RIL has industry-leading capabilities across businesses to drive robust 15-20 per cent EPS CAGR over the next 3-5 years, particularly driven by both consumer businesses.