1. At a Glance
Reliance Industries Ltd (RIL) just pulled a classic Bollywood stunt – PAT jumped 78% YoY to ₹26,994 crore in Q1 FY26, but most of that came from a one‑time ₹8,924 crore gain on selling its Asian Paints stake. Core business? Growing, but not doing somersaults. Revenue grew just 5.1% to ₹2,43,632 crore. Jio added 200M 5G subscribers, Retail EBITDA rose 12.7%, and Oil‑to‑Chemicals kept chugging. Investors expected a banger, but the stock dipped ~3% post results. In short: profits up, but the “protein shake” had steroids.
2. Introduction
Reliance – India’s corporate Thanos – snapped its fingers this quarter, and boom: profits doubled. But before you light diyas for Mukesh Bhai, here’s the truth – a big chunk of the profit wasn’t from operations, but a fat one-time sale of Asian Paints shares. Strip that away, and growth looks more like a sensible family drama than a Marvel finale.
While investors drooled over the headline numbers, analysts quickly pulled out their calculators and shouted, “Wait, this isn’t organic!” The stock’s muted reaction tells you everything. Nevertheless, Retail and Jio continued their hero act, and O2C margins staged a respectable comeback.
3. Business Model (WTF Do They Even Do?)
RIL is the buffet of Indian capitalism:
- O2C (Oil to Chemicals) – The legacy refinery and petrochemical giant turning crude into fuels and plastics. Global leader, cyclical business.
- Jio Platforms – Telecom turned data empire with 5G dominance. 200M+ users and counting.
- Retail – India’s largest retail chain (grocery, fashion, electronics). Double-digit EBITDA growth.
- New Energy – Green hydrogen, CBG, solar. Big promises, future bets.
- Others – Media, financial services, esports (yes, esports), and random acquisitions.
They do everything except selling momos at traffic signals.
4. Financials Overview
Q1 FY26 Highlights
- Revenue: ₹2,43,632 crore (↑5.1% YoY)
- EBITDA: ₹42,905 crore (↑15% YoY)
- PAT: ₹26,994 crore (↑78% YoY; core PAT ~₹22,000 crore)
- Other Income: ₹15,119 crore (₹8,924 crore from Asian Paints stake sale)
- EPS: ₹19.95 vs ₹11.19 YoY
Fresh P/E Calculation
Using TTM EPS (₹60.23) and CMP (₹1,399):
P/E = 1,399 / 60.23 ≈ 23.2×
Excluding one-off gains, P/E >25×.
Conclusion: Richer than BPCL, poorer than your expectations.
5. Valuation
Method 1 – P/E
- Core EPS ~₹43
- Apply P/E range 20–24×
- Fair Value = ₹860 – ₹1,032
Method 2 – EV/EBITDA
- EV ~₹20 lakh cr, EBITDA ₹1.7
