RIL Shares up 3% on Q4 Performance; Brokerages Remain Optimistic

Shares of Reliance industries surged by 3% in the early trading on April 28 by becoming the top gainer on the Nifty 50 index. The company posted strong earnings during the March quarter for FY25.

Net profit went up by 2.4% to ₹19,407 crore for Q4 FY25, on the back of lower depreciation, interest and tax rate. The revenue for the reported quarter jumped by 8.8% from the year-ago period to ₹2.88 lakh crore, majorly driven by the company's digital services, retail and oil-to-chemicals business.

As of 9:40 am, Reliance Industries shares jumped by 3% to ₹1,339.60 apiece on the NSE.

Several brokerage houses raised their target prices on the stock after the Mukesh-Ambani led company reported robust performance across segments and higher-than-anticipated results for the O2C segment.

The rally in RIL shares was largely attributed to the telecommunication arm Reliance Jio. Segment-wise, Jio is set to be the biggest growth driver with 21% annual EBITDA growth over FY25-27, driven by another tariff hike, increased wireless market share, and accelerated expansion of home and enterprise broadband services.

Nomura Holdings also factored in key triggers which will steer growth for Reliance Industries in the near term. These include scaling up of new business, upcoming tariff hikes for Jio and potential IPO/listing for Jio, which will drive value-unlocking for RIL.

“Additionally, with the completion of streamlining of operations at Reliance Retail, the retail business will sustain a healthy growth trajectory,” Nomura said.

JP Morgan also said about the sharp acceleration of Reliance Retail’s growth in Q4. The company’s net profit jumped 16% YoY. As per the brokerage, favourable valuations played a key role in increasing the share price of the company in the near term