Reliance Shares Jump 3% After Strong Q2 Results: Can the Momentum Continue?
Reliance Shares Jump 3% After Strong Q2 Results: Can the Momentum Continue?
On October 20, 2025, Reliance Industries Ltd (RIL) shares jumped almost 3% after the company reported strong earnings for the second quarter of FY26.
The stock rose sharply from earlier lows to reach an intraday high of ₹1,466.50. As the holiday season gets going, investors are hopeful that this could be the start of a bigger rally.
Key Takeaways
- Reliance shares rose 3.49%, closing at ₹1,465.50 on NSE.
- Market capitalization reached ₹19.17 lakh crore, reaffirming RIL’s dominance.
- Q2 FY26 net profit stood at ₹18,165 crore, up 9.7% YoY.
- Revenue climbed 10% YoY to ₹2.54 lakh crore; EBITDA up 15% to ₹43,540 crore.
- Strong performance across O2C, Retail, and Jio segments.
- Brokerages project targets between ₹1,515 and ₹1,890, maintaining mostly Buy/Overweight ratings.
Stock Performance and Market Reaction
The stock’s rise from its 52-week low of ₹1,300 to ₹1,465.50 shows that investors are very confident. More than 1.12 million shares were traded, which shows that both institutional and retail buyers were very active. The momentum has helped the stock rise about 27% from its lowest point of the year.
An Overview of Earnings
Reliance’s consolidated net profit went up 9.7% from the previous year to ₹18,165 crore, even though it was down 32.7% from the previous quarter because of one-time gains.
Revenue rose 10% year over year to ₹2,54,623 crore, and EBITDA rose 15% to ₹43,540 crore, which was more than what many analysts had expected. The profit before taxes of ₹22,092 crore went up 14.3% from the previous year.
| Segment | Key Highlights | YoY Growth |
|---|---|---|
| O2C (Oil-to-Chemicals) | Higher refining margins drove strong EBITDA gains | Significant |
| Retail | EBITDA at ₹5,269 crore; Net Profit up 17.2% | 18.9% |
| Jio (Digital) | Subscriber additions remained strong; ARPU at ₹211.4 | Robust |
Values and Targets for Analysts
Brokerages are still optimistic. JP Morgan says Reliance Retail is worth $143 billion and Jio is worth $135 billion. A P/E ratio of 23.53 and a PEG ratio of 4.37 suggest that the company is fairly valued for a diversified conglomerate. Investments were going into new energy, telecom, and retail, and capex was ₹40,010 crore.
Top brokerages have issued optimistic targets:
- Jefferies: ₹1,785 (30% upside on BESS opportunity)
- Investec: ₹1,890 (growth-driven outlook)
- Nomura: ₹1,700 (Buy)
- Morgan Stanley: ₹1,701 (Overweight)
- JPMorgan: ₹1,695 (Overweight; Jio IPO potential)
- Macquarie: ₹1,650 (Outperform)
- Kotak: ₹1,600 (Add)
- HDFC Securities: ₹1,685 (Buy)
- DAM Capital: ₹1,515 (Buy)
Consensus target averages around ₹1,535, with 36 analysts recommending a Buy.
Market Sentiment and Broader Context
People on social media are very positive about the market, with more than 80% of people saying they are bullish.
Traders expect the market to move toward ₹1,500–₹1,800, and technical indicators like a golden cross near the ₹1,340 support zone back this up.
RIL’s rise comes at the same time as good news from other companies, like HDFC Bank (net profit up 11% to ₹18,641 crore) and ICICI Bank (PAT up 5% to ₹12,359 crore).
UltraTech Cement’s profits went up by 75%, but IndusInd Bank’s profits went down. The Sensex and Nifty also stayed strong last week, with the Sensex up 1.75% and the Nifty up 1.67%.
Should investors buy more Reliance?
RIL’s fundamentals are still strong, thanks to growth in its main businesses and possible events like the Jio IPO in 2026. Experts say that instead of chasing the rally,
you should slowly build up your holdings. If the current trend continues, Reliance may have more room to grow in the next few quarters.
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