Shares of Reliance Industries (RIL) dropped more than 1% on Monday, April 27, following the company, chaired by Mukesh D Ambani, announcing a 12.6% year-on-year (YoY) decline in its consolidated net profit (attributable to company owners) to ₹16,971 crore for the January-March quarter of the fiscal year 2026 (Q4FY26). In the same quarter of the prior financial year (Q4FY25), the company’s profit stood at ₹19,407 crore.
The oil-to-telecom-to-retail empire led by Mukesh Ambani reported a 12.9% YoY increase in consolidated revenue from operations, amounting to ₹2,98,621 crore for the March quarter. During this period in FY25, RIL’s revenue was ₹2,64,573 crore.
RIL’s gross revenue experienced a 13% YoY rise to ₹3,25,290 crore, whereas profit after tax (PAT) fell by 8.1% YoY, reaching ₹20,616 crore.
Reliance Industries reported a marginal decline in consolidated EBITDA for the quarter, down 0.3% year-on-year to ₹48,588 crore, with margins contracting by 200 basis points to 14.9%.
The company said strong momentum in its oil-to-chemicals (O2C), digital services, and retail segments drove double-digit revenue growth, while the oil and gas business saw a decline due to lower KG-D6 production.
For FY26, net profit rose 16% to ₹80,775 crore, while revenue from operations increased 9.75% to ₹10.75 lakh crore. Chairman Mukesh Ambani said the company remained resilient despite geopolitical disruptions, volatile energy prices, and shifting global trade patterns, supported by its diversified portfolio and domestic focus.
Reliance also announced a dividend of ₹6 per share for FY26. Ambani added that progress towards the listing of Jio Platforms is on track, marking a key milestone ahead.
Should you buy, sell or hold?
According to Nuvama Institutional Equities, Reliance Industries Ltd. reported a weaker-than-expected Q4FY26 performance, with EBITDA at ₹44,100 crore, up 1% year-on-year but down 4% sequentially, and about 6% below estimates. Growth was led by the digital business, which rose 16% YoY, while the O2C segment declined 4% and retail grew a modest 3%.
The brokerage flagged near-term headwinds in Q1FY27 due to softer O2C margins and muted retail traction. However, it highlighted strong long-term drivers, including rapid scaling of the new energy business, with module and cell capacity expected to reach 10GW, potentially adding around 6% to PAT. The company is also progressing on renewable energy and green hydrogen plans, which could lower power costs and boost profitability over time.
Nuvama maintained a ‘Buy’ rating with a target price of ₹1,765, valuing the stock at 20x FY28E EPS.
According to Motilal Oswal Financial Services, estimates for Reliance Industries have been trimmed, with FY27E EBITDA and PAT cut by 3–4% due to ongoing challenges in the energy business and delays in tariff hikes for Reliance Jio.
The brokerage expects RIL to deliver a CAGR of 10% in consolidated EBITDA and 8% in adjusted PAT over FY26–28E. Despite the near-term headwinds, it has reiterated a ‘Buy’ rating on the stock, with a revised target price of ₹1,655, down from ₹1,715 earlier.
