Reliance Industries Ltd: Mukesh Ambani-owned firm's profit soars 78%, share tumbles on BSE, because...

Mukesh Ambani-owned Reliance Industries Ltd (RIL) continues to hog the headlines. Despite registering a 78% increase in its net profit for the first quarter of the Financial Year 2025-26, its share tumbled on the stock exchange on Monday, the first session after the results were announced. Though the company's net profit for the period soared from 15,138 crore to Rs 26,994, its shares nosedived 2.4% and slipped to 1,441.95 at the BSE. 

The profit earned by the RIL beat the market estimate of Rs22,069 crore mainly due to the surge, driven by a one-time gain of Rs 8,924 crore from the sale of its stake in Asian Paints, boosting other income. Analysts believe that the investors were not happy at this and considered the real profit of the conglomerate to be much less than what appears. 

RIL to be under lens

Experts have said that the RIL shares as well as those of Jio Financial will continue to be under the lens of both bulls and bears after their respective Q1 results were declared on the weekend. Though both stocks are good for long-term investors, the Reliance Industries Ltd share price may beat the rally of the Jio Financial Services share price. 

Dalal Street experts are optimistic over the fact that the RIL share price has rejected the resistance zone around Rs 2,532. It may be heading to test major liquidity between Rs2,414 and Rs, as there is no strong buying interest at these levels. With this, the RIL share price may become more attractive to buy on dips.

RIL net profit soars to Rs 58,024 crore

The Mukesh-Ambani-owned Reliance Industries reported a profit of Rs 58,024 crore before tax. The EBITDA surged 36% year-on-year to clock Rs 42,748 crore in the same period last year. Similarly, the conglomerate has shown its gross revenue rising 6% year-on-year to Rs2,73,252 crore. Jio Platforms reported an 18.8% year-on-year growth in revenue. 

However, its Oil to Chemicals (O2C) revenue declined 1.5% YoY due to lower crude prices and lower volumes from a planned shutdown. The Oil & Gas business suffered a 1.2% YoY revenue loss. It was the net result of the KGD6 output, weaker CBM gas pricing, and lower crude realisations. RIL's Consumer Electronics business registered a growth of 26% in average bill value and a 200 bps increase in conversions YoY. However, the AC sales came down due to the early monsoons.