Reliance Industries creates history, earns 1.29 lakh crore in 45 minutes

In a remarkable turn of events at the Indian stock market, Mukesh Ambani-led Reliance Industries Limited has created history on the back of its stellar financial performance and phenomenal quarterly results. Throughout the current financial year, the company's stock had been witnessing a sluggish trend and was trading at a decline of nearly 28 percent. In such a challenging environment, while the Jio Platforms IPO had earlier made headlines, the Reliance stock itself had not seen the kind of high-flying surge that market experts and investors were eagerly anticipating. All hopes were eventually pinned on the much-awaited quarterly earnings report card. Fulfilling those high expectations, Reliance Industries released its financial report card on Friday evening, leaving the market awestruck. The results displayed a massive 41 percent year-on-year surge in the company's consolidated net profit, a milestone rarely witnessed over the past several years. This phenomenal financial health directly translated into aggressive buying when the market opened on Monday, creating a massive wave of enthusiasm across the bourses.

Bumper Surge in Reliance Industries Shares

40 rupees and within a span of just 45 minutes, skyrocketed to touch the day's high of 1,259 rupees. 55 rupees on the preceding Friday. 40 rupees. 20 rupees, the sheer momentum witnessed in the trading session indicates that continuous buying could soon recover all previous losses incurred during the year. Market experts believe that this positive upward trajectory in Reliance Industries shares is likely to sustain and gather further momentum in the upcoming trading sessions, boosting investor confidence Notably.

Record-Breaking Growth in Net Profit and Revenue

During the September quarter, Reliance Industries registered a stellar 41 percent year-on-year increase in its consolidated net profit attributable to shareholders, taking the total figure to an impressive 25,548 crore rupees. In the corresponding quarter of the previous financial year, the net profit stood at 18,165 crore rupees. This remarkable growth was primarily driven by the solid and consistent contributions coming from the Oil-to-Chemicals (O2C) segment and the digital-services business. 58 lakh crore rupees recorded in the corresponding quarter of the previous fiscal year. The single largest contributor to this massive expansion in earnings was undoubtedly the Oil-to-Chemicals segment. The EBITDA of this specific segment witnessed a staggering 68 percent year-on-year surge, climbing sharply from 15,008 crore rupees to reach an all-time record high of 25,203 crore rupees.

Massive 1.29 Lakh Crore Addition to Valuation

The stellar rally in the shares of Reliance Industries had an immediate and monumental impact on the company's overall market capitalization and valuation. 29 lakh crore rupees for its investors during the trading session. 77 crore rupees. 36 crore rupees at the market close on Friday. 41 crore rupees to its valuation within a matter of hours, showcasing the absolute market dominance and financial muscle of Reliance Industries.

Jefferies Maintains Buy Rating with High Target Price

Prominent global brokerage firm Jefferies has maintained its 'buy' rating on the Reliance Industries stock while issuing a target price of 1,710 rupees per share. This indicates an expected further upside potential of up to 47 percent from current levels. The brokerage firm noted that owing to the exceptional performance delivered by the Oil-to-Chemicals segment, the company's consolidated EBITDA came in 6 percent higher than initial market estimates, effectively offsetting a 6 percent decline witnessed in the retail segment. Due to shifts in the festive season calendar and the continuous expansion of quick commerce, the core retail growth and EBITDA witnessed a year-on-year moderation, while however, Jefferies expects that due to ongoing disruptions and damage to refining infrastructure across the Middle East and Russia, profit margins in the O2C segment are likely to remain elevated throughout the winter season. The brokerage has accordingly upgraded its EBITDA estimates for financial year 2027 and financial year 2028 by 6 percent and 2 percent respectively. Jefferies also pointed out that the stock is currently trading lower than its long-term average by more than 2 standard deviations, reflecting overly pessimistic expectations among market participants. According to the firm, earnings upgrades and a recovery in retail growth back to mid-teens levels could act as major catalysts for a comprehensive stock re-rating.

Nomura and Nuwaama Institutional Equities Share Insights

Meanwhile, brokerage firm Nomura has revised its target price for Reliance from 1,690 rupees to 1,560 rupees per share, while still indicating a solid upside potential of 34 percent. Nomura highlighted that the consolidated EBITDA outperformed their internal estimates by 9 percent, largely propelled by the stronger-than-expected performance of the Oil-to-Chemicals business, whereas upstream and telecom operations performed largely in line with expectations. However, retail EBITDA fell short of the brokerage's estimates by 10 percent. The O2C business recorded an EBITDA of 25,200 crore rupees, comfortably beating Nomura's estimate of 20,300 crore rupees. This represents a 48 percent jump sequentially and a 68 percent increase year-on-year, marking the strongest quarterly performance ever recorded by this segment. Gas-oil, aviation turbine fuel (ATF), and gasoline cracks registered multi-fold expansions year-on-year, supported by lower crude basket costs, enhanced operational margins, and higher throughput. On the other hand, Nuwama Institutional Equities maintained its 'buy' rating on RIL with a target price of 1,703 rupees, implying a 25 percent upside potential. 17 lakh crore rupees, which is 1 percent lower compared to the previous year, helping keep the weighted average cost of capital under control. Nuwama remains confident in its 'golden refining era' thesis, expecting sustainable gross refining margins of over 10 dollars per barrel, while the eventual rollout of Reliance's new energy business is projected to contribute over 50 percent to after-tax profits over time, thereby supporting the long-term re-rating of the entire corporate valuation.