Reliance Industries (RELIANCE IN) – Q3FY26 Result Update – Consolidated EBITDA a miss; Retail under pressure – BUY
Published on 18 Jan 2026
Reliance Industries’ (RIL) consolidated EBITDA came in at Rs460.2bn (PLe: Rs477.6bn; BBGe: Rs478.9bn), flat QoQ and up 5.0% YoY. Adjusted PAT grew 2.6% YoY to Rs186.5bn (PLe: Rs187.4bn; BBGe: Rs200.2bn). Performance was largely driven by Jio Platforms Ltd (JPL) and the O2C segment, partly offset by weaknesses in the O&G and Retail businesses. Standalone EBITDA declined 2.1% YoY but improved 3.5% QoQ to Rs148.9bn, driven by a sharp recovery in fuel cracks, partly offset by higher feedstock freight rates and weaker petrochem spreads. Retail EBITDA stood at Rs67.7bn, up 2.2%/2.1% QoQ/YoY, with margins contracting by 50/60bps QoQ/YoY. Jio ARPU remained resilient at Rs213.7, up QoQ from Rs211.4, with subscriber additions of 8.9mn taking the total subscriber base to 515.3mn. The stock is trading at 11.2x/9.9x consol FY27E/FY28E EV/EBITDA. New energy projects remain on track, with nearly all of Rs750bn capex already spent or under implementation. In the absence of quantitative disclosures, we assign a value of Rs111/share to this segment, valuing it at 2x the earlier announced capex of Rs750bn. We maintain a BUY rating, driven by strong momentum in digital business and steady progress towards its New Energy business with a revised target price of Rs1,683 (previously Rs1,741).
