Reliance Industries Limited (RELIANCE) AI Stock Analysis

• Market Cap: ₹19.07T
• Dividend Yield: 0.35%
• Average Volume (3M): 667.36K
• Price to Earnings (P/E): 28.5
• Beta (1Y): 1.23
• Revenue Growth: 8.08%
• EPS Growth: 22.36%
• Country: IN
• Employees: 347,362
• Sector: Energy
• Sector Strength: 52
• Industry: Oil & Gas Refining & Marketing
• EPS (TTM): 13.80
• Shares Outstanding: 13,532,473,000
• 10 Day Avg. Volume: 749,320
• 30 Day Avg. Volume: 667,355
• PEG Ratio: 626.06
• Price to Book (P/B): 2.01
• Price to Sales (P/S): 1.76
• P/FCF Ratio: 119.73
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹1,688.00
• Price Target Upside: 6.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 60.12
• Revenue Forecast (FY): ₹10.08T

• Rating: 74 Outperform
• Price Target: ₹1,578.00 ▼(-0.91% Downside)
• Action: Reiterated Date: 11/28/25
• Date: Action: Reiterated 11/28/25

Reliance Industries' strong financial performance and bullish technical indicators are key strengths, supporting a positive outlook. However, the high valuation and overbought technical signals present potential risks. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Diversified business model

Reliance's multi‑segment model (O2C, retail, digital/telecom) creates durable revenue diversification. This reduces dependence on any single cycle, enables cross‑subsidy of investments (e.g., digital funding infrastructure) and leverages scale advantages across sourcing, distribution and platforms.

Strong cash generation

Material improvement in operating cash flow and a large FCF recovery indicate the company reliably converts earnings to cash. Sustained cash generation supports capex for network/retail buildout, de‑risking balance sheet, funding strategic investments and steady long‑term operational flexibility.

Improved margins and prudent leverage

A notable uplift in gross profit margin alongside conservative leverage (debt/equity ~0.44) reflects operational efficiency and prudent capital structure. Higher upstream and retail margins plus manageable debt provide resilience to shocks and capacity to fund growth initiatives sustainably.

Negative Factors

Compressed net margin

Despite strong gross margins, the decline in net profit margin suggests pressures from operating costs, interest, taxes or non‑operating items. Over the medium term, persistent compression would limit retained earnings, capacity to reinvest, and true shareholder earnings conversion.

Moderate return on equity

An ROE around mid‑single digits is modest for a large diversified group. Given significant capital employed in O2C and infrastructure, this indicates the company currently delivers moderate capital efficiency, which may constrain long‑term shareholder returns versus higher‑return peers.

Exposure to commodity cycles

A material portion of earnings comes from oil refining and petrochemicals, which are structurally exposed to volatile commodity prices and spreads. This cyclical exposure can meaningfully swing cash flows and margins across business cycles despite diversification into retail and digital.

Reliance Industries Limited Business Overview & Revenue Model

Company Description

Reliance Industries Limited engages in hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, textile, retail, digital, and financial services businesses worldwide. The company produces and markets petroleum products, such as liquefied petroleum gas, propylene, naphtha, gasoline, jet/aviation turbine fuel, kerosene oil, diesel, Sulphur, and petroleum coke. It also provides petrochemicals, including high-density and low-density polyethylene (PE), linear low density PE, polyester fibers and yarns, polypropylene, polyvinyl chloride, polyester yarn, purified terephthalic acid, ethylene glycols and oxide, paraxylene, ortho xylene, benzene, linear alkyl benzene and paraffin, poly butadiene rubber, styrene butadiene rubber, butyl rubber, and polyethylene terephthalate. In addition, the company manufactures and markets yarns, fabrics, apparel, and auto furnishings; explores, develops, and produces crude oil and natural gas; and operates various stores comprising neighborhood, supermarket, hypermarket, wholesale cash and carry, specialty, online, pharmacy, and grocery stores, as well as stores that offer apparel, beauty and cosmetics, accessories, footwear, consumer electronics, connectivity products, and others. As of March 31, 2021, it operated 12,711 retail stores. Further, it provides range of digital services under the Jio brand name; and non-banking financial and insurance broking services. Further, it operates news and entertainment platforms, finance portals, fashion and lifestyle portals, and online ticket booking platforms, as well as Network18 and television channels; publishes magazines; and offers highway hospitality and fleet management services. The company was incorporated in 1973 and is based in Mumbai, India.

How the Company Makes Money

Reliance makes money through multiple operating segments that generate revenue from the sale of products and services. (1) Oil-to-Chemicals (O2C): The company earns revenue by refining crude oil into petroleum products (such as gasoline, diesel, jet fuel and other refinery streams) and by producing and selling petrochemicals (including polymers, polyester chain products, and other chemical intermediates). Earnings in this segment are influenced by refining margins, petrochemical spreads, feedstock costs (including crude), product demand, and the mix of higher-value products; a meaningful portion of sales can be export-linked depending on market conditions. (2) Retail: Reliance generates revenue by selling consumer goods through its retail network and e-commerce/digital channels, spanning groceries and everyday essentials, fashion and lifestyle, electronics, and other categories. Retail earnings come from merchandise sales (and associated gross margins), supported by private-label offerings, scale purchasing, distribution/logistics capabilities, and omnichannel fulfillment. (3) Digital Services (Telecom and Platforms): Through its telecom operations (notably Reliance Jio), the company earns recurring service revenue from mobile and fixed broadband connectivity (voice and data plans), including prepaid and postpaid subscriptions, as well as enterprise connectivity and related services. Digital/platform revenues can also include revenue from digital services delivered over its network (e.g., certain apps/platform offerings and enterprise digital solutions) where applicable. (4) Other/Investments: The company may also earn income from other businesses and from returns on investments and associates, such as dividends, interest income, and share of profit from equity-accounted investments, depending on period-specific disclosures. Overall, Reliance’s earnings are driven by the scale and integration of its O2C manufacturing and supply chain, the volume- and margin-led economics of its retail operations, and recurring subscriber/service revenues from telecom and digital services; segment performance varies with commodity cycles (O2C), consumer demand and competitive intensity (retail), and subscriber growth/ARPU, network investments, and regulation (telecom).

Reliance Industries Limited Financial Statement Overview

Summary

Reliance Industries demonstrates strong financial performance with significant revenue growth and improved gross margins. The balance sheet is stable with prudent leverage management, and cash flow performance is robust, indicating strong cash generation capability. However, the net profit margin shows room for improvement.

Income Statement

Reliance Industries Limited demonstrates robust revenue growth with a 10.78% increase from 2024 to 2025. Gross profit margin improved significantly, reaching 57.72% in 2025, a strong indicator of operational efficiency. However, net profit margin slightly decreased to 6.98%, indicating a potential area for improvement in cost management or other expenses.

Balance Sheet

The company's debt-to-equity ratio is stable at 0.44, reflecting prudent leverage management. Return on equity is healthy at 8.26%, showcasing effective utilization of shareholder capital. The equity ratio stands at 43.25%, suggesting a balanced asset structure with adequate equity financing.

Cash Flow

Operating cash flow increased to 1.79 trillion, indicating strong cash generation capability. Free cash flow showed a notable recovery, with a growth rate of 556.81% in 2025, highlighting improved financial flexibility. The company's ability to convert earnings to cash remains strong, supporting its operational and financial commitments.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	9.77T	9.65T	9.01T	8.78T	6.96T	4.67T
Gross Profit	2.94T	2.82T	2.65T	2.06T	1.64T	1.28T
EBITDA	1.99T	1.83T	1.79T	1.53T	1.26T	999.40B
Net Income	815.04B	696.48B	696.21B	667.02B	607.05B	491.28B
Balance Sheet
Total Assets	0.00	19.50T	17.56T	16.07T	15.00T	13.21T
Cash, Cash Equivalents and Short-Term Investments	0.00	2.25T	1.54T	1.87T	1.44T	1.70T
Total Debt	0.00	3.70T	3.46T	3.34T	2.82T	2.60T
Total Liabilities	-10.10T	9.40T	8.30T	7.79T	6.11T	5.22T
Stockholders Equity	10.10T	8.43T	7.93T	7.16T	7.79T	7.00T
Cash Flow
Free Cash Flow	0.00	141.57B	-205.45B	-364.83B	-98.88B	-895.66B
Operating Cash Flow	0.00	1.54T	1.32T	1.05T	902.57B	162.71B
Investing Cash Flow	0.00	-1.54T	-1.04T	-1.02T	-1.16T	-1.50T
Financing Cash Flow	0.00	91.33B	6.97B	316.26B	431.88B	1.20T

Reliance Industries Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1592.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RELIANCE, the sentiment is Negative. The current price of 1592.45 is above the 20-day moving average (MA) of 1415.83, above the 50-day MA of 1445.77, and above the 200-day MA of 1447.94, indicating a bearish trend. The MACD of -13.23 indicates Negative momentum. The RSI at 48.03 is Neutral, neither overbought nor oversold. The STOCH value of 79.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RELIANCE.

Reliance Industries Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
COALINDIA	77 Outperform	₹2.73T	8.59	―	6.62%	-0.76%	-10.84%
BPCL	76 Outperform	₹1.41T	5.71	―	4.73%	-1.35%	61.80%
RELIANCE	74 Outperform	₹19.07T	28.49	―	0.35%	8.08%	22.36%
OIL	74 Outperform	₹765.48B	14.43	―	2.94%	-1.94%	-28.79%
ONGC	72 Outperform	₹3.39T	7.55	―	5.21%	0.10%	-10.18%
IOC	68 Neutral	₹2.26T	4.41	―	4.90%	-0.93%	42.85%
Sector *	65 Neutral	$15.17B	7.61	4.09%	5.20%	3.87%	-62.32%

Reliance Industries Limited Corporate Events

Reliance Ramps Up LPG and Diverts KG-D6 Gas to Bolster India’s Energy Security

Reliance Industries has announced operational measures to support India’s energy security amid heightened volatility in global energy markets. The company is maximizing liquefied petroleum gas output from its Jamnagar refining and petrochemicals complex, aiming to keep fuel supply to Indian households stable in line with government priorities.

In parallel, Reliance will divert natural gas from the KG-D6 Basin to priority sectors designated under national energy policies, reinforcing its alignment with government allocation guidelines. The company framed these steps as part of a broader commitment to ensure uninterrupted access to essential fuels for key sectors and communities during a period of global uncertainty.

Reliance Brings Meta Unit into Reliance Enterprise Intelligence, Diluting Wholly Owned Status

Reliance Industries has reshaped the ownership structure of its subsidiary Reliance Enterprise Intelligence Limited (REIL), which operates as a step-down unit under the group’s digital and intelligence-focused businesses. REIL has issued new equity to Reliance Intelligence Limited, a wholly owned Reliance subsidiary, and to Facebook Overseas, Inc., a unit of Meta Platforms, resulting in a joint shareholding between the two investors.

Following the allotment of over 853 million shares at par, Reliance Intelligence now holds 70% of REIL’s equity, while Facebook Overseas owns 30%, meaning REIL is no longer a step-down wholly owned subsidiary but remains a step-down subsidiary of Reliance Industries. The company noted that all necessary approvals are in place, clarified that the Meta-linked investment is not a related-party transaction, and emphasized that the Reliance group’s internal transaction is on an arm’s length basis, underscoring governance and compliance considerations for shareholders.

Reliance Confirms No Unpublished Price-Sensitive Data Shared at Nuvama Conference

Reliance Industries has informed stock exchanges that its executives participated in the Nuvama India Conference 2026, an institutional investors’ meeting held in Mumbai on February 10, 2026. The engagement forms part of the company’s ongoing outreach to investors and was organised by a third party.

The company clarified that no unpublished price-sensitive information was shared or discussed during the one-on-one interactions at the conference. This disclosure underscores Reliance’s adherence to securities regulations and its commitment to fair disclosure practices, aiming to reassure market participants about the transparency of its investor communications.

Reliance Industries Posts Analyst Meet Transcript for Q3 2025–26 Results

Reliance Industries Limited has released the transcript of its analyst meeting discussing the company’s unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025, held physically on 16 January 2026. The nearly two-hour session, led by group CFO V Srikanth and senior executives from Jio Platforms, Reliance Retail, FMCG, entertainment (JioStar), oil and gas E&P, refining and marketing, petrochemicals, and new energy, covered performance across each major business segment and included a Q&A with analysts. By formally disclosing and posting the detailed transcript and related presentation and audio on its website under regulatory requirements, Reliance is providing investors and other market participants with comprehensive visibility into current operating trends and strategic priorities across its diversified portfolio, underscoring its ongoing engagement with capital markets and adherence to disclosure norms.

Reliance Industries Sets January 16 Board Meeting to Review Q3 FY2026 Results

Reliance Industries Limited has scheduled a board meeting on January 16, 2026 to consider and approve its standalone and consolidated unaudited financial results for the quarter and nine months ended December 31, 2025. Following the board meeting, the company will host an analyst meet to discuss these results, signalling its continued focus on regulatory compliance, timely disclosure and engagement with investors and market participants across its multiple stock exchange listings in India and overseas.

Reliance Industries Cedes Control of Fashion Label Abraham & Thakore to Founders

Reliance Industries Limited has announced that Abraham & Thakore Private Limited, a fashion label previously held as a step‑down subsidiary through Reliance Retail Ventures Limited, has issued equity rights to its founder fashion designers, increasing their stake to 50.91% of voting rights. As a result, operational and voting control of Abraham & Thakore has shifted back to the founders, and the company has ceased to be a subsidiary within the Reliance group, signaling a scaling back of Reliance’s direct control over this particular fashion brand within its broader retail and lifestyle portfolio.