Reliance Industries rises on value buying; higher diesel margins seen supporting outlook

Reliance Industries rose 3.28% to Rs 1,389.70 as investors stepped in for value buying after the stock witnessed a sharp correction in recent sessions.

The stock had declined 4.26% over the past three trading sessions amid rising geopolitical tensions in the Middle East, which had weighed on broader market sentiment.

A domestic brokerage said the company could see near-term benefits from the recent surge in energy prices, driven by a sharp rise in diesel refining margins and a potential improvement in petrochemical spreads. Diesel cracks have reportedly climbed to around $35-$42 per barrel from about $20 earlier. Given that diesel accounts for a significant portion of output at Reliance's refinery, sustained cracks could boost the companys gross refining margins and support EBITDA growth.

 

However, the brokerage cautioned that the spike in diesel cracks may not be sustainable and could prompt government intervention through windfall taxes if margins remain elevated.

Reliance may also benefit from stronger petrochemical margins, supported by a diversified feedstock mix that reduces dependence on crude-linked inputs.

Potential triggers for the stock include the possible initial public offering of Jio and a potential telecom tariff hike following the listing.

Reliance Industries is India's largest private sector company. Its activities span hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail and digital services.

On a consolidated basis, the conglomerate reported 1.6% rise in net profit to Rs 22,290 crore on 10% increase in gross revenue to Rs 293,829 crore in Q3 FY26 over Q3 FY25.

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