Shares of Reliance Industries Limited (RIL) surged 4% on April 28, 2025, following better-than-expected quarterly earnings. Brokerages have since raised their outlook for the company, citing strong growth drivers across its digital, retail, and oil-to-chemicals (O2C) businesses. RIL’s robust performance has fueled investor optimism, signaling a bright future despite broader market concerns.
Strong Q4 Earnings Drive Share Growth
Reliance Industries’ shares were the top gainers on the Nifty 50 index during early trading hours on April 28, rising 4.22% to reach Rs 1,355.30 apiece. The significant jump in stock price came after the company posted impressive Q4 FY25 results. For the fiscal quarter ending March 31, 2025, RIL reported a 2.4% year-on-year increase in net profit, reaching Rs 19,407 crore.
This exceeded analysts’ expectations, with some pointing to reduced depreciation costs, lower interest expenses, and an efficient tax rate as key contributors. Revenue for the quarter also climbed 8.8% to Rs 2.88 lakh crore, driven primarily by RIL’s flourishing digital services, retail operations, and the O2C segment, which includes its refining and petrochemical businesses.
The market responded enthusiastically, reflecting the confidence in RIL’s diversified business model and the solid performance across various sectors.
Boost from Digital, Retail, and O2C Segments
A major highlight from RIL’s Q4 report was the growth in its digital and retail businesses. These two segments have been key drivers of the conglomerate’s expansion in recent years. Jio, RIL’s telecommunications arm, has continued to innovate and expand its offerings, contributing significantly to the company’s financial performance. Additionally, RIL’s retail business, which includes leading brands such as Reliance Fresh and Reliance Digital, also posted solid gains, benefiting from increased consumer spending and the expansion of its store footprint across India.
Equally notable was the performance of RIL’s O2C business, which outperformed expectations due to strong refining margins and higher demand for petrochemical products. Analysts attribute the impressive growth in this segment to the strategic upgrades made to RIL’s refining capacity and its ability to tap into lucrative global markets.
Brokerages Turn Bullish on RIL
Following the strong quarterly results, several brokerages upgraded their target price for Reliance Industries. Analysts point to multiple growth drivers for the company, particularly in its new energy ventures and continued retail expansion. With Jio maintaining a dominant position in India’s telecom market, combined with growing interest in RIL’s renewable energy projects, brokerages believe that RIL’s stock is poised for continued growth in the coming quarters.
Some market experts are especially bullish on RIL’s new energy ventures, which include investments in green hydrogen and electric vehicle (EV) infrastructure. The company’s ambitious plans to become a leader in sustainable energy are seen as major growth triggers for the future.
Market Outlook and Investor Sentiment
RIL’s impressive Q4 performance is contributing to broader market optimism, with many analysts now revising their predictions for the company’s growth trajectory. The strong fundamentals of the business, coupled with an increasingly favorable macroeconomic environment in India, make RIL an attractive investment for long-term growth. The company’s diversified portfolio provides a hedge against market volatility, as seen in its ability to weather global economic uncertainties and still deliver solid results.
While global markets have faced challenges in recent months, Reliance Industries continues to demonstrate resilience and growth potential, underscoring the confidence investors place in its leadership under Mukesh Ambani. Given the steady performance across core sectors, the outlook for RIL remains positive, and its ability to navigate the dynamic Indian market positions it for continued success.
Key Takeaways
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Revenue Growth: RIL’s revenue grew by 8.8% to Rs 2.88 lakh crore, with strong contributions from digital, retail, and O2C businesses.
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Profit Increase: The company’s net profit for Q4 FY25 increased by 2.4% to Rs 19,407 crore, surpassing market expectations.
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Brokerage Upgrades: Brokerages are bullish on RIL, with raised target prices based on strong performance and promising future growth triggers from Jio, new energy projects, and retail.
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Investor Confidence: Shares surged 4%, reflecting positive market sentiment following the strong earnings report.
As the company’s strategic initiatives continue to play out, the market will be watching closely to see how Reliance Industries builds on this strong foundation to deliver long-term value for investors.
