HDFC Bank Share Price Up 2% after strong Q1 2026 Results
July 21, 2025
RIL Share Price Drops 2.5% After Posting ₹26,994 Cr Profit in Q1 FY26
Jul 21, 2025
TABLE OF CONTENTS
The Reliance share price fell more than 2.5% on Monday, July 21, 2025, even after the company reported record profits. The stock of India's most valuable company dropped to ₹1,438 per share, making it the biggest loser in the Nifty 50 index.
What Happened to Reliance Share Price?
The drop in the RIL share price occurred after Reliance Industries announced its Q1 FY26 results on July 18. The company reported massive profits but investors were not satisfied with certain aspects of the business.
The current market data shows that Reliance target price is ₹1578.46, which is a slight upside of 6.94% compared to the current price of ₹1476. Based on analysts, RELIANCE was correctly assessed at a price target of 1,585.47 INR with a maximum estimate of 1,850.00 INR and a minimum estimate.
Reliance Industries Q1 Results: The Big Numbers
Reliance Industries Q1 results showed impressive growth in profits:
Record Profit : Reliance made ₹26,994 crore profit in Q1 FY26, which is 78% higher than last year's ₹15,138 crore. This happened mainly because the company sold its shares in Asian Paints, earning ₹8,924 crore from this sale.
Revenue Growth : The company's total revenue grew 5% to ₹2,48,660 crore compared to ₹2,36,217 crore last year.
Operating Performance : The company's EBITDA (earnings before interest, taxes, depreciation, and amortisation) grew 11% to ₹42,905 crore, with profit margins improving to 17.25%.
Breaking Down Each Business
Jio (Telecom Business) - The Star Performer
Jio, Reliance's telecom arm, had a strong quarter in Q1 FY26. The company reported net profit of ₹7,110 crore, a year-on-year increase of 25%. Revenue is also strong and increased 19% to ₹41,054 crore. The company reported strong gains in average revenue per user (ARPU), increasing 15% to ₹208.8 per month, further demonstrating that customers are willing to customers are spending more on Jio services.
Reliance Retail - Steady but Slow
The retail business reported decent growth but just below consensus expectations. Net profit increased 28% to ₹3,271 crore and Revenue grew at 11% to ₹84,171 crore. The company opened 388 stores during the quarter which increased the total store count to 19,592 stores in India. The registered customer base of Reliance Retail grew to 358 million customers.
Oil & Chemicals Business - The Weak Spot
The Oil and Chemicals business has been a traditional business for Reliance. In this quarter, the company reported a drop in revenue of 1.5% year on year, and overall performance was weaker than expected. In addition, with the new European bans on Russian oil, it has created uncertainty around the company's future operations and the overall prospects for profitability.
Why Did Reliance Share Price Fall?
Despite good Reliance Q1 results, the share price dropped for several reasons:
One-Time Gains : A significant amount of the increase in profit came from sales of Asian Paints' shares and not from its activities as a business. Notably, if the one-time increase in profits from the sale of Asian Paints was removed, profit increased only 14.4% year-over-year, which is less than the level analysts were expecting.
Retail Business : The retail segment overall grew revenue at only 11%, which was short of the market's expectations. Analysts expected a stronger outcome from this key business segment.
Oil Business : The oil-to-chemicals business saw reduced revenues after declining profitability and new sanctions on Russian oil purchased.
High Expectations : Understandably, investors expected better overall performance from each and every business segment.
What Analysts Say About Reliance Share Price Target 2025
Leading investment firms shared their views on Reliance share price target 2025:
Positive Outlook:
Nuvama: Maintains 'Buy' rating with target price of ₹1,767
Nomura: 'Buy' rating with target price of ₹1,600
Macquarie: Sees good potential in Jio business
Key Strengths Highlighted:
New Energy business expected to grow strongly
Jio's pricing power and subscriber growth
Strong balance sheet and cash position
Areas of Concern:
Retail business growth slower than expected
Oil refining margins under pressure
Impact of Russian oil sanctions unclear
Future Outlook: What's Next for RIL Share Price?
Short-term (2025): Reliance share price target for 2025 is between ₹1,072.15 and ₹1,842.14, showing wide analyst opinion ranges.
Medium-term Growth Drivers:
New Energy Business: Expected to contribute over 50% of profits in 4-6 quarters
Jio Growth: Potential IPO listing and tariff increases
Retail Expansion: Continued store network growth
Long-term Vision: Management aims to double company earnings by 2029, supported by:
Clean energy transition
5G network expansion
Retail market leadership
Key Takeaways for Investors
Why Reliance Share Price Fall Happened:
Profit growth was mainly due to one-time asset sales
Core business performance was mixed
Retail growth disappointed investors
Oil business faces regulatory challenges
Reasons to Stay Optimistic:
Strong Jio business momentum
New Energy business potential
Solid financial position
Long-term growth strategy
Investment Considerations:
Stock has fallen 6% from recent highs, creating potential buying opportunity
Reliance Industries Ltd is up for a third straight session in a row showing some recovery
Analysts maintain mostly positive ratings despite short-term concerns
Conclusion
Despite the decline in Reliance share price following its Q1 results, the company’s long-term outlook remains positive. The dip instead reflects investor concerns about variability in business performance rather than any fundamental weakness.
With the New Energy segment ramping up and Jio continuing its robust growth across various digital segments, several analysts have argued that the current RIL share price provides investors with a good opportunity to gain exposure for long-term value. Nonetheless, investors need to monitor developments in the retail business recovery and challenges related to the oil segment in future quarters.
The Reliance Industries Q1 results indicate that while the company is transitioning towards areas for future growth, it needs to improve on its traditional businesses to justify any premium valuations.
Disclaimer : This analysis is prepared for educational purposes only and should not be considered as financial advice. Investors should consult their financial advisors and conduct thorough research before making investment decisions. Investments in equity markets are subject to market risks, including volatility and sector-specific challenges.
FAQs
1. Why did Reliance share price fall after good Q1 results?
The reliance share price fell because most of the 78% profit growth came from one-time gains (₹8,924 crore from Asian Paints stake sale) rather than core business improvement. Without this one-time gain, actual business profit growth was only 14.4%, which was below analyst expectations. Additionally, the retail segment growth was slower than expected at 11%.
2. What is the Reliance share price target 2025 according to analysts?
Analysts have set reliance share price target 2025 in a wide range between ₹1,072 to ₹1,842. Leading brokerages like Nuvama target ₹1,767 with a 'Buy' rating, while Nomura projects ₹1,600. The current consensus target is around ₹1,578, showing a potential upside of 6.94% from current levels.
3. How did Reliance Industries Q1 results perform across different business segments?
Reliance Industries Q1 results showed mixed performance. Jio was the star performer with 25% profit growth and 19% revenue increase. Retail business grew steadily with 28% profit growth but 11% revenue growth disappointed analysts. The oil-to-chemicals business struggled with 1.5% revenue decline year-on-year.
4. Which business segment performed best in RIL Q1 results?
Jio telecom business performed best in RIL Q1 results with strong numbers across all metrics. Net profit jumped 25% to ₹7,110 crore, revenue grew 19% to ₹41,054 crore, and most importantly, ARPU (Average Revenue Per User) improved 15% to ₹208.8, showing excellent customer monetization.
5. Should investors buy RIL share price after the recent fall?
The RIL share price has fallen 6% from recent highs of ₹1,541, potentially creating a buying opportunity for long-term investors. Most analysts maintain 'Buy' ratings citing strong prospects in New Energy business, Jio's growth potential, and management's target to double earnings by 2029. However, investors should consider the mixed Q1 performance and monitor upcoming quarters.
6. What were the main concerns in Reliance Q1 results?
Reliance Q1 results raised several concerns among investors. The retail business revenue growth of 11% was below expectations. The oil-to-chemicals segment saw revenue decline of 1.5%. Most importantly, the profit growth was heavily dependent on one-time asset sales rather than operational improvements. New European sanctions on Russian oil also created uncertainty.
7. What are the future growth drivers for Reliance Industries after Q1 results?
Future growth will be driven by several key factors. The New Energy business is expected to contribute over 50% of profits within 4-6 quarters. Jio business has potential for tariff hikes and possible IPO listing. Retail expansion continues with 388 new stores added in Q1. Management's ambitious goal is to double company earnings by 2029 through clean energy transition and 5G network expansion.
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