Reliance Industries shares slipped after a weaker Q4 profit, dragged by its oil-to-chemicals business, even as Jio and retail posted solid growth. Brokerages including Nuvama, Antique and Elara remain bullish with Buy ratings, citing upside from a potential Jio IPO, telecom tariff hikes, new energy projects and improving refining margins.

RIL Shares Dip after Q4 Results, Brokerages Stay Bullish Despite Cuts

Shares of Reliance Industries fell over 1% on Monday after the conglomerate reported a sharp drop in quarterly profit, weighed down by its oil-to-chemicals business even as its telecom arm delivered strong growth.

The company's consolidated net profit declined 12.6% year-on-year (YoY) to ₹16,971 crore in the January-March quarter of FY26, compared to ₹19,407 crore in the same period last year. Revenue from operations, however, rose 12.9% to ₹2,98,621 crore, while gross revenue climbed 13% to ₹3,25,290 crore.

The stock opened at ₹1,326.80 on the BSE and was trading around ₹1,333.80, down about 0.45%, by mid-morning.

The digital services business, led by Jio, was the standout performer, with EBITDA growing 16% YoY, supported by strong subscriber additions of 9.1 million in the quarter and a growing 5G base of 268 million users. Retail revenue grew 11% year-on-year, though margin pressure from investments in online channels kept profit growth modest at 3%.

What Brokerages Say

Nuvama Institutional Equities flagged a weaker-than-expected quarter, with overall EBITDA up just 1% year-on-year and about 6% below estimates. It noted near-term headwinds from soft O2C margins and muted retail traction, but highlighted the rapid scale-up of the new energy business as a key long-term driver. Nuvama maintained a Buy rating with a target price of ₹1,765.

Antique Stock Broking also noted the earnings miss, pointing to cost pressures in refining and softer retail margins as the main culprits, while calling Jio's subscriber growth a key positive. It trimmed its FY27-28 estimates modestly and maintained a Buy rating with a revised target price of ₹1,670, implying around 26% upside from current levels.

Elara Capital upgraded Reliance to Buy from Accumulate, citing an 8% correction in the stock over the past six months as an attractive entry point. It revised its target price to ₹1,619, after cutting earnings estimates to account for weaker petrochemical margins and slower retail growth. The brokerage sees potential upside in refining margins once disruptions to Hormuz Strait traffic normalise.

All three brokerages pointed to a common set of catalysts to watch: a potential Jio IPO, telecom tariff hikes, commissioning of new energy and petrochemical projects and the trajectory of global crude and refining margins. The company's green energy ambitions, including a 20 GW solar capacity target and a $3 billion green ammonia supply deal, were highlighted as significant long-term value drivers.