Shares of Reliance Industries Ltd (RIL) rose sharply by over 3 per cent in early trading on April 28, becoming the top performer on the Nifty 50 index. The rally came after the Mukesh Ambani-led conglomerate reported better-than-expected earnings for the quarter ended March 2025.
The company posted a 2.4 per cent year-on-year increase in net profit attributable to shareholders, reaching Rs 19,407 crore in Q4 FY25. The earnings exceed market expectations, aided by lower depreciation, interest costs, and a reduced tax rate. Meanwhile, revenue for the quarter rose 8.8 per cent from a year earlier to Rs 2.88 lakh crore, supported by strong performances across its digital services, retail, and oil-to-chemicals (O2C) businesses.
Following the results, several brokerages raised their target prices for RIL, citing the company's strong performance across segments, particularly the better-than-anticipated showing in the O2C business.
By 10:30 am, Reliance shares were trading 3.9 per cent higher at Rs 1,350.5 on the NSE, marking the stock’s steepest intraday rise since January 17, 2025.
The bullish sentiment was largely fuelled by the robust prospects of Reliance Jio, the group's telecom arm. Domestic brokerage Motilal Oswal highlighted Jio as a major growth driver, forecasting a 21 per cent annual growth in EBITDA for the FY25-27 period, driven by an expected tariff hike, increasing market share in wireless services, and the expansion of home and enterprise offerings.
Global brokerage Nomura Holdings pointed to several near-term growth catalysts for RIL, including the scaling-up of its new energy business, forthcoming tariff hikes for Jio, and the potential IPO or listing of Jio, which could unlock significant value.
Nomura also emphasised the positive outlook for Reliance Retail, citing the recent streamlining of operations that is expected to support sustained healthy growth.
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JPMorgan echoed similar sentiments, noting a strong 16 per cent year-on-year jump in Reliance Retail’s growth during Q4. It suggested that the attractive valuations could help drive the share price higher in the near term.
On the clean energy front, Nuvama Institutional Equities projected that the profit share from RIL’s new energy segment could rise to 12 per cent by FY2030. The brokerage also noted management’s ambition for new energy profits to match those of the O2C business by FY2031, with clean technologies expected to contribute over 50 per cent of the consolidated net profit additions moving forward.
Motilal Oswal expects RIL’s consolidated EBITDA and net profit to grow at a compounded annual rate of 13-14 per cent over FY25-27, driven by strong growth in both Jio and Retail. The O2C segment is also anticipated to see a recovery after a muted FY25, supported by improved refining margins.
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