Reliance Industries stock saw a shocking dip despite the historic Q1 performance. Find out all you need to know in this comprehensive news story.
Reliance Industries' Historic Q1 Performance
In the first quarter of FY26, Reliance Industries reported its highest-ever quarterly net profit of ₹30,783 crore, representing a 76.5% year-over-year increase. Strong growth across consumer-facing areas like Jio and Retail, as well as a one-time gain of ₹8,924 crore from the sale of its investment in Asian Paints, were the main drivers of this.
Due to aggressive store expansion and an increase in digital orders, retail revenue increased by 11.3% year over year.
Decline in stock performance
Reliance's stock dropped more than 2.7% after the news, wiping off around ₹54,000 crore in market value despite the company's record-breaking earnings.
Analysts blamed the decline on poor performance in key businesses such as Retail and Oil-to-Chemicals (O2C), which fell short of EBITDA projections. O2C experienced volume pressure from planned shutdowns, while retail growth slowed as a result of early monsoon effects on electronics sales.
Market Sentiment
Investor feelings are mixed but mostly positive. The strong first-quarter results came from a one-time gain. Brokerages like Jefferies, Nomura, and Emkay still recommend buying, indicating long-term growth in Jio, Retail, and New Energy.
Mukesh Ambani stated Reliance aims to double its earnings every 4 to 5 years. However, analysts are concerned about risks in New Energy and the need for margin recovery in Oil-to-Chemicals and Retail.
What’s Next
Reliance is preparing for a multi-decade change, with the New Energy ecosystem scheduled to be fully operational in 4-6 quarters. The company intends to build gigafactories, ramp up solar and battery storage, and increase its green hydrogen footprint. Jio is expanding into AI, cloud gaming, and fixed wireless broadband, while Retail focuses on faster delivery and more regional penetration.