Shares of Reliance Industries Ltd. (RIL) surged over 6% in early trading on Monday, November 2, following the company's strongest-ever quarterly performance. The conglomerate reported record revenue and a sharp improvement in profitability for the September quarter, with consolidated profit after tax (PAT) for the first half of FY27 crossing the ₹50,000 crore mark.
The oil-to-chemicals (O2C) business was a key growth driver, with EBITDA increasing 67% sequentially to ₹25,203 crore, significantly ahead of the estimated 20% growth. O2C EBITDA margin expanded to 10.8% from 8.4% in the previous quarter, attributed to stronger transportation fuel cracks and higher margins across the polyester chain.
Reliance Jio's operating revenue increased to ₹40,475 crore, with average revenue per user (ARPU) improving to ₹218.80. The company attributed the growth to subscriber additions, higher ARPU, and healthy growth in digital services. Meanwhile, Reliance Retail Ventures Ltd. (RRVL) reported gross revenue of ₹91,716 crore, with EBITDA margins under pressure amid continued investments in JioMart.
Brokerages like Goldman Sachs, Nomura, and Kotak Institutional Equities maintained 'Buy' ratings on Reliance Industries, with target prices ranging from ₹1,500 to ₹1,840. They highlighted the strong O2C performance but noted weaknesses in the retail segment. Of the 31 analysts tracking RIL, 30 have a 'Buy' recommendation, indicating a potential upside of 39% from current levels.