RIL posts strong Q1 results: Should you buy shares?
What's the story
Reliance Industries Ltd (RIL), led by Mukesh Ambani, witnessed a 2.5% rise in its share price on Friday to close at ₹1,328.8 per share. The surge comes after the company released its financial results for the quarter ending June 30, 2026. For Q1 FY27, RIL reported a consolidated net profit of ₹20,946 crore, 22.4% lower than the same period last year but up 23.4% sequentially from ₹16,971 crore in Q4 FY26.
Financial performance
Key financials for RIL in Q1 FY27
RIL's revenue from operations for Q1 FY27 stood at ₹3,11,850 crore, a 25.4% year-on-year (YoY) and 4.4% quarter-on-quarter (QoQ) increase.
The company's consolidated EBITDA also witnessed growth, rising by 10.1% YoY and 11.3% QoQ to ₹54,067 crore.
Despite a yearly decline in the EBITDA margin by 210 basis points, it improved sequentially by 100 basis points to reach 15.9%.
Profit analysis
Impact of exceptional items on annual profit
RIL's annual profit was impacted by a high base in the previous year, which included a one-time gain of ₹8,924 crore from selling its stake in Asian Paints.
Excluding this exceptional item, the company's net profit for Q1 FY27 showed a 15.9% YoY increase.
Seema Srivastava of SMC Global Securities noted that RIL started FY27 on a strong note with consolidated revenue up 24.5% YoY to ₹3,40,257 crore and record recurring EBITDA of ₹54,067 crore, up 10.1% YoY.
Business segments
Jio and retail segments drive growth
Jio Platforms emerged as a key growth driver for RIL, with revenue growing 12% to ₹45,961 crore and EBITDA jumping 15.1% to ₹20,865 crore.
The company's retail segment also posted a 7.4% revenue growth to ₹90,408 crore despite a slight EBITDA decline due to digital commerce scale-up weighing on margins.
Srivastava highlighted Jio's IPO DRHP filing as a major milestone that could unlock value for investors in India's digital economy.
Market outlook
Long-term bullish outlook on RIL shares
Sugandha Sachdeva, founder of SS WealthStreet, believes that Reliance is well-positioned to sustain earnings growth due to structural growth drivers.
She said the proposed Jio IPO could be major value-unlocking catalyst and investments in digital infrastructure, retail expansion, and new energy businesses could bolster long-term growth prospects.
Sachdeva also noted that despite brief intraday slips below ₹1,280 support level on weekly charts since April 2025, stock has managed to close above it indicating accumulation at lower levels by long-term investors.