Reliance shares are set for their best day since January 2024 after the company posted a 40.6% jump in September-quarter net profit to 255.48 billion rupees. Strong refining margins and Jio growth helped the firm beat estimates. Analysts said the O2C business hit the bullseye, boosting the company’s overall outlook.
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Billionaire Mukesh Ambani's Reliance posted a 40.6% jump in September-quarter net profit to 255.48 billion rupees ($2.69 billion), ahead of analysts' estimate of 214.19 billion rupees, on the back of stronger refining and petrochemical margins.
The quarter reinforced expectations that Reliance's earnings growth is gathering pace, with strength in its energy and telecom businesses more than offsetting pressure in retail, analysts said.
Jefferies said O2C "hit the bullseye", with record crude processing, nimble sourcing and a shift toward higher-value fuel exports helping Reliance capitalize on a favourable refining environment.
The brokerage raised its earnings forecasts after the stronger-than-expected quarter.
Emkay Global said a sharp recovery in the O2C business and improving profitability at Jio drove the earnings beat, prompting it to raise estimates and maintain that the stock's valuation remains attractive.
Retail remained the softer part of the business.
Earnings were weighed down by investments in quick commerce, store rationalisation and cost pressures, though Reliance reiterated plans to expand JioMart and its dark-store network as it builds scale before focusing on monetisation.