Reliance soars 7% post Q2 results; sees sharpest intraday rally in 3 years

Reliance Industries: The stock price of the most-valued company in terms of market capitalisation recorded its sharpest intraday surge since Jan 29, 2024, when it surged 7.2%, shows BSE data.

Reliance Industries share price movement

 

Reliance Industries (RIL) share price rallied 7.12 per cent to ₹1,246.45, its sharpest intraday rally in nearly three years on the BSE in Monday’s intraday deals after the company reported strong financial performance for the quarter ended September 2026.

 

The stock price of the most-valued company in terms of market capitalisation recorded its sharpest intraday surge since January 29, 2024, when it soared 7.18 per cent, the BSE data shows. On February 3, 2026, the stock soared 7.11 per cent.

 

At 10:04 AM, RIL was the top gainer among the Sensex and Nifty 50, up 6.1 per cent, as compared to a 1.2 per cent rise in the benchmark indices. The counter saw huge trading volume with a combined 42.59 million shares changing hands on the NSE and BSE.

 

 

RIL’s Q2 results

 

RIL reported high double-digit growth in consolidated and standalone revenue and net profit in the July-September 2026 quarter (Q2FY27), driven by a sharp rise in transportation fuel and downstream petrochemical (petchem) prices. The performance beat consensus estimates, while revenue and profit before interest, depreciation and taxes (PBIDT) hit record levels.

 

The oil-retail-telecom major’s consolidated net profit attributable to owners of the company rose 40.6 per cent year-on-year (YoY) to a record ₹25,548 crore in Q2FY27, from ₹18,165 crore in Q2FY26 and ₹20,946 crore in Q1FY27. Reported net profit rose 33.8 per cent YoY to ₹29,550 crore.

 

RIL's consolidated net sales rose 29.8 per cent YoY to an all-time high of ₹3.31 trillion in Q2FY27, from ₹2.55 trillion a year earlier and ₹3.09 trillion in Q1FY27. This was also higher than the estimate of ₹3.14 trillion. 

 

ALSO READ | RIL's Q2 beat lifts earnings outlook, even as brokerages pare price targets The oil-to-chemicals (O2C) division, which includes oil refining and petrochemical products, accounted for a little over 80 per cent of the incremental growth in RIL’s consolidated gross revenue and earnings before interest and taxes (Ebit) on a YoY basis in Q2FY27.

 

Reliance Retail reported 5.8 per cent YoY revenue growth to ₹80,220 crore, impacted by the shift in festive season to Q3 from Q2 last year. Earnings before interest, tax, depreciation and amortization (EBITDA) from operations declined 11.1 per cent YoY to ₹5,886 crore, with margins contracting 140bps to 7.3 per cent due to planned investments in digital commerce and inflationary pressures. Lower EBITDA, coupled with higher depreciation (+25 per cent YoY) and interest costs (+54 per cent YoY), led to a 24 per cent YoY decline in profit after tax to ₹2,611 crore, ICICI Securities said in a note.

 

Brokerages view on RIL

 

“O2C delivered a strong beat, helping consolidated EBITDA beat estimates by 6 per cent, though Retail was 6 per cent below. Core Retail growth and EBITDA declined YoY due to a festive shift and continued drag from QC build-out. O2C profitability should be elevated in the winter with damage to refining infrastructure in the Middle East and Russia,” analysts at Jefferies said in the Q2 result update.

 

The brokerage firm raised consolidated EBITDA 6 per cent/2 per cent for FY27/28E as analysts see the strong O2C performance sustaining. “We note the stock trades > 2 standard deviation below long-term average EV/Ebitda, suggesting maximum pessimism. Earnings upgrade/s and a recovery in Retail growth to mid-teens should re-rate the stock, in our view,” the brokerage firm said. It maintains Buy rating on RIL with a price target of ₹1,710.

 

Analysts at Equirus Securities maintain 'Long' rating on RIL, as the recent correction has improved the risk-reward, with current multiples offering a reasonable entry point against RIL’s medium-term earnings growth potential. While O2C recovery and Jio growth provide earnings visibility, sustained Retail performance and timely New Energy execution remain key to unlocking the next leg of rerating, the brokerage firm said.

 

Analysts at Motilal Oswal Financial Services expect Digital to remain the biggest growth driver (with an 80 per cent contribution to RIL’s incremental EBITDA), with 18 per cent EBITDA compound annual growth rate (CAGR) over FY26-28E, driven by the tariff hike (15 per cent in 4Q), market share gains in wireless, and the continued ramp-up of Homes and Enterprise offerings.

 

The brokerage firm reiterated a 'Buy' rating with a revised target price of ₹1,520 (earlier ₹1,560). “We estimate that RIL is currently trading at a 54 per cent holding company discount on its 64.5 per cent stake in Jio Platforms Limited, which we believe is excessive. The energy segment drives a near-term earnings upgrade; however, we view recovery in Reliance Retail’s growth and profitability as the key driver of RIL’s stock price,” analysts said. Disclaimer: Views and outlook in this report belong to the brokerages and analysts cited. They do not reflect the views of Business Standard. Readers are advised to exercise discretion.