Reliance Industries's m-cap crosses ₹17L crore after shares surge 8%
What's the story
Reliance Industries Limited (RIL) has witnessed a massive spike in its market capitalization, which crossed ₹17 lakh crore on Monday. The surge comes as the company's shares gained over 8% intraday, following its record-breaking Q2 FY27 earnings and positive brokerage calls. This is RIL's biggest intraday gain in over six years, since April 2020.
Market performance
RIL shares hit an intraday high, most traded stock
The shares of Reliance Industries hit an intraday high of ₹1,259 today, marking an 8.1% jump.
This pushed the conglomerate's market capitalization to some ₹17.05 lakh crore.
The stock was also the most traded on both NSE and BSE exchanges.
The rally in RIL's stock contributed to broad gains in the equity market, with Sensex and Nifty trading higher at 75,425 points and 23,327 points, respectively.
Financial performance
Reliance Industries' record Q2 FY27 earnings
Reliance Industries reported its strongest-ever quarterly financial performance for the July-September quarter.
The company posted record revenue, EBITDA, and net profit figures.
Consolidated revenue jumped 28% year-on-year (YoY) to an all-time high of ₹3.62 lakh crore while EBITDA rose 24% to a record ₹62,409 crore.
Net profit soared by 34% to ₹29,550 crore, also a quarterly record, for the company.
Business growth
Best-ever quarterly performance in O2C business
The O2C business of Reliance Industries recorded its best-ever quarterly performance with revenue rising 44.2% YoY to ₹2.32 lakh crore and EBITDA surging by 67.9% to ₹25,203 crore.
Transportation fuel cracks, a measure of refining margins, increased three to 3.7 times from last year, hitting historic highs during the quarter.
This stellar performance has been instrumental in driving RIL's stock market rally today.
Digital expansion
Jio Platforms drives growth in digital services business
Reliance's digital services business, Jio Platforms, also reported a YoY revenue growth of 11.3% to ₹47,485 crore.
Its EBITDA increased by 16.6% to ₹21,879 crore on the back of subscriber additions and higher average revenue per user (ARPU).
This expansion in digital services further contributed to Reliance Industries's strong financial performance for Q2 FY27 and subsequent stock market rally today.
Analyst outlook
Brokerage firms retain 'Buy' rating on Reliance post-Q2 results
Goldman Sachs and Nomura have retained their 'Buy' rating on Reliance Industries after its record quarterly performance.
Goldman Sachs has set a target price of ₹1,840 per share, suggesting an upside of 58% from Friday's closing price of ₹1,164.90.
The brokerage said Reliance's Q2 EBITDA was 9% above its estimates, driven by strong O2C performance.