Shares of Reliance Industries (RIL) traded with marginal gains on Monday, July 20, as investors gave a subdued response to the company’s better-than-expected June quarter (Q1FY27) earnings. RIL’s share price rose 1.11 per cent to ₹1,342 per share in early trade. At 9:20 AM, the stock was trading at ₹1,332.40, up 0.20 per cent from its previous close on the NSE. At the same time, the benchmark NSE Nifty50 was quoted at 24,203, down 131 points, or 0.54 per cent.
RIL Q1 results
On Friday, July 17, RIL reported better-than-expected earnings for the April-June quarter (Q1FY27), aided by stronger revenue and margins in its oil-to-chemicals (O2C) and digital services businesses. Revenue, Ebitda (earnings before interest, taxes, depreciation, and amortisation), and net profit all surpassed consensus estimates.
The oil-to-retail-to-telecom conglomerate posted a consolidated net profit attributable to owners of ₹20,946 crore in Q1FY27, down 22.4 per cent year-on-year (Y-o-Y) from ₹26,994 crore. The decline was due to a high base, as the year-ago quarter included a one-time gain of ₹8,924 crore from the sale of listed investments.
Excluding other and non-recurring income, consolidated profit before tax rose 9.3 per cent Y-o-Y to ₹24,080 crore from ₹22,027 crore.
Consolidated net sales rose 27 per cent Y-o-Y to a record ₹3.09 trillion in Q1FY27 from ₹2.44 trillion a year ago. The figure stood at ₹2.94 trillion in the preceding quarter.
Should you buy, sell or hold RIL shares?
Brokerages remained positive on Reliance Industries following its Q1FY27 earnings, citing strong momentum in Jio’s digital business, expectations of a gradual recovery in the oil-to-chemicals (O2C) segment, an improving earnings outlook, healthy free cash flow prospects, and attractive valuations.
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