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Business Standard
19 hours ago
- Business
- Business Standard
Reliance Industries sheds over ₹70,000 crore in market cap post Q1 results
Reliance Industries (RIL) has erased over ₹70,000 crore in market capitalisation, as the stock price of the most valuable Indian firm slipped 3.6 per cent in Monday's intra-day trade in an otherwise stable market after reported weak earnings. RIL has announced its June quarter (Q1FY26) results on Friday post-market hours. RIL's market capitalisation has declined by ₹72,805 crore to ₹19.26 trillion on the BSE in intra-day trade. The company's market capitalisation stood at ₹19.99 crore on Friday, July 18. With Monday's decline, RIL has corrected 8 per cent from its current month high of ₹1,551 on July 7, 2025. The stock had hit a 52-week high of ₹1,589.50 on July 19, 2024. RIL's Q1FY26 consolidated earnings before interest, taxes, depreciation, and amortisation (Ebitda) declined 2 per cent quarter-on-quarter (Q-o-Q) (+11 per cent year-on-year (Y-o-Y) to ₹42,900 crore, due to weaker performance in Retail and oil-to-chemicals (O2C). The key positive in Reliance Jio was margin expansion along with 5G adoption progressing well with 210 million (versus 191 million in Q4) subscribers (42 per cent of the overall base) already migrated. The company continues to see 5G as a medium to long-term enabler of higher data usage and APRU driver along with its effort on home broadband, wherein it added 2.6 million subscribers in the quarter through acceleration of JioAirFiber. The company also has been leveraging UBR (Unlicensed band radio) to deploy fixed wireless access, which will bring scalability to the same. Total fixed subscriber base stood at 20 million, including 7.4 million from JioAirFiber. Key monitorable would be further tariff hike ahead, according to ICICI Securities. Meanwhile, Motilal Oswal Financial Services reduces its FY26-27 Ebitda by 1-2 per cent and profit after tax (PAT) by 4 per cent each due to broad-based earnings cuts. While Q1 was soft, the brokerage firm remains sanguine on RIL's growth prospects across segments. However, YES Securities recommend a BUY rating on RIL with a target price of ₹1,640 per share. Expectation of elevated capex levels due to the ongoing 5G rollout, planned petrochemical capacity expansion, and planned foray into renewable energy and acquisitions in retail. However, in the longer run, investments in petrochemical and renewable capacities, along with the 5G rollout, Retail growth, and New energy contribution have the potential to drive revenue growth, the brokerage firm said in a result update.
Mint
a day ago
- Business
- Mint
For RIL, a strategic partner for new energy business may be the next catalyst for value unlocking
Reliance Industries Ltd's (RIL's) consolidated net profit (attributable to owners based on controlling interest) for the June quarter (Q1FY26) rose almost 20% year-on-year to ₹18,070 crore. This is even after excluding the gain realized on the sale of Asian Paints Ltd shares worth ₹8,924 crore. While key oil-to-chemicals (O2C),retail and Jio telecom businesses have largely done well, the pressure on retail margin is evident. Retail core Ebitda margin (excluding investment income) slid for the third consecutive quarter to 8.2% after hitting a peak of 8.5% in Q2FY25. With margin being almost flat year-on-year, absolute Ebitda increased 11% year-on-year to ₹6,044 crore, with similar growth in revenue to ₹73,720 crore. Average sales per store and per square foot grew 7% and 16% year-on-year, which should have aided Ebitda margin improvement with the operating leverage kicking in. The flat Ebitda margin could be indicative of discounts to counter competitive intensity and also rising operational costs. Some of the cost impact could be due to JioMart turning aggressive to counter quick commerce rivals as its hyperlocal deliveries soared by 68% QoQ and 175% year-on-year in terms of daily orders. Read more: Reliance Q1 results: RIL posts record profit despite crude weakness, sets stage for clean energy future Q1FY26 should be the peak growth for the telecom vertical as growth in the subsequent quarters would taper off, given that the effect of tariff hikes taken in July 2024 won't be there. Average revenue per user (Arpu) increased just 1% sequentially in Q1 to ₹208.8, which could be due to higher Arpu from new customers of Jio AirFiber that provides fixed wireless access (FWA) internet connectivity to homes and businesses using 5G technology. Even the cheapest monthly plan of Jio AirFiber costs ₹600, which is thrice the minimum mobile recharge plan. Thus, incremental AirFiber subscribers help in pushing up the overall Arpu. Telecom customer base grew 2% QoQ to 498 million, which includes Jio AirFiber customers in addition to the mobile subscribers. In Q1, Jio became the largest FWA service globally with a subscriber base of 7.4 million. Resilient O2C business RIL's O2C business was resilient in the wake of a turbulent operating environment globally and also the effect of a planned shutdown for maintenance. The production meant for sale fell 2% year-on-year to 17.3 million tonne, but Ebitda increased 11% to ₹14,511 crore. This was because of higher refining margins, mainly on diesel and petrol that grew 7% and 16%, respectively. Lower naphtha prices led to better petrochemical margins for polypropylene and other derivatives. While existing businesses are steady, there is no update on a separate listing of telecom and retail businesses. However, investors could be surprised as RIL's management has hinted at roping in a financial or strategic partner in its new energy business once the project is operationalized. The project, encompassing photovoltaic solar cells and battery energy storage to green hydrogen, is likely to be fully operational in the next 4-6 quarters. Read more: The king's comeback: Why Reliance Industries is beating the market Unlike telecom or retail, the new energy business of RIL does not have sizable listed companies for comparison on valuations. While the business is valued separately by analysts in their sum-of-the-parts (SoTP) valuation for RIL, there could be an upside to the valuation if a new partner is roped in at a high price. RIL's shares trade at 25x its FY26 estimated earnings, based on Bloomberg consensus. If earnings growth continues at the same pace of 20% as seen in Q1FY26, then the valuation does not appear expensive.
Time of India
4 days ago
- Business
- Time of India
Jio extends its ‘unlimited offer' with free JioHotstar access. What are the key benefits for its users?
Jio 'unlimited offer' benefits: JioHotstar Free JioHotstar Subscription: All eligible Jio prepaid and postpaid users will get a complimentary JioHotstar subscription under the "Jio Home Unlimited Offer 2025". Who Can Avail the Offer – Prepaid Users: Jio prepaid users who recharge with ₹349 or above plans that include at least 1.5 GB data per day are eligible. Who Can Avail the Offer – Postpaid Users: Jio postpaid users with plans starting from ₹349 per month or more (including new customers or those changing their plan) are eligible. Not Eligible: The offer is not applicable to users of JioBharat, JioPhone, or voice-only value plans. Other Eligibility Conditions: To avail the offer, users must be active Jio prepaid or postpaid subscribers and enrolled in the Jio Prime membership. Offer Validity: The offer is available for a limited time starting from July 1, 2025. The end date will be decided by Jio. Offer Benefits: The benefits will be available during the validity period of the eligible recharge or postpaid plan. Free JioHotstar Access: Jio prepaid and postpaid users on eligible plans can get up to 3 months of complimentary JioHotstar (JHS) subscription in 4K. Eligibility – Prepaid Users: Recharge with ₹349 or above (plans with 1.5 GB/day or more). Recharge within 48 hours of expiry to continue benefits for the 2nd and 3rd months. Prepaid Benefits: Recharge valid for 28–30 days: 1 month JHS. Recharge valid for 28–56 days: 2 months JHS (recharge again within 48 hrs for 3rd). Recharge valid beyond 56 days: 3 months JHS. Eligibility – Postpaid Users: Active postpaid plan of ₹349/month or higher. Valid for new activations or plan changes during the offer period. Eligible postpaid users get full 3-month JHS subscription. Not Eligible: JioBharat, JioPhone, and voice-only value plans. Jio Home WiFi Offer 50-Day Free Home Internet Trial : Eligible Jio prepaid/postpaid users get a free trial of JioFiber or JioAirFiber for 50 days. : Eligible Jio prepaid/postpaid users get a free trial of or for 50 days. Eligibility – Prepaid : New users recharging with ₹349. Existing users recharging with ₹349+ plans (1.5 GB/day or more). ₹100 data add-on recharge is also eligible. : Eligibility – Postpaid : Active monthly plan of ₹349 or above. ₹100 data add-on recharge also qualifies. : Upfront Payment : ₹500 refundable deposit, returned as five ₹100 vouchers after 6 months (one voucher redeemable at a time). : ₹500 refundable deposit, returned as five ₹100 vouchers after 6 months (one voucher redeemable at a time). How to Avail : Express interest via MyJio app or . Offer activation is on a first-come, first-served basis and subject to technical feasibility. : Post Offer : After 50 days, users will be auto-migrated to the ₹599 JioFiber/JioAirFiber postpaid plan. : (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Following strong response during the cricket season, Jio has extended its 'Unlimited Offer' this quarter, offering users on Rs 299 and above plans a 90-day free JioHotstar subscription in 4K for TV and mobile, along with a 50-day free trial of JioFiber or AirFiber for home use against a refundable deposit of Rs Platforms reported strong financial and operational performance for the quarter ended June 2025, with EBITDA rising 23.9% year-on-year to ₹18,135 crore. Net profit grew 24.8% to ₹7,110 crore. The company added 9.9 million net subscribers during the quarter, supported by gains in the mobility segment and record additions in home broadband connections. Monthly churn stood at 1.8%, while total subscriber base reached 498.1 million as of June 30, users crossed the 200-million mark, reaching 212 million by the end of the quarter. Fixed broadband connections touched nearly 20 million, and JioAirFiber became the world's largest fixed wireless access (FWA) service with 7.4 million also launched JioGames Cloud, a cloud-based gaming platform offering access to over 500 titles across devices without dedicated hardware. Average revenue per user (ARPU) rose to ₹208.7, aided by tariff hikes and seasonal factors. Per capita data usage reached 37 GB/month, with total data traffic up 24% year-on-year to 54.7 billion GB.
Time of India
11-06-2025
- Business
- Time of India
Mukesh Ambani's consumer empire overtakes decades-old energy business of RIL
Marking the transition of Asia's richest billionaire Mukesh Ambani from being an oil baron to a consumer titan, every second rupee of Reliance Industries Ltd's (RIL) operating cash profit now comes from its twin consumer-facing ventures of Reliance Retail and Reliance Jio . 'Reliance Retail + Telecom now account for ~54% of total FY25 consolidated EBITDA,' wrote Sanjay Mookim, analyst at JPMorgan in a recent report. 'Prior to venturing into retail/telecom, RIL's earnings growth was determined by either capex (new refining/chemical capacities), or margin cycles. Capex cycles then tended to impact stock performance.' Back in FY17, a staggering 96% of Reliance's EBITDA came from its core energy operations. Fast forward to FY25, and the consumer verticals have taken center stage. According to JPMorgan, RIL's adjusted consolidated EBITDA is pegged at Rs 165,444 crore in FY25, rising to Rs 216,103 crore by FY28—driven almost entirely by Retail and Jio. 'These will account for almost all of the net EBITDA growth over the next three years,' Mookim said. While the group operated at materially negative free cash flow over the past three years due to heavy telecom spending, that cycle is winding down. JPMorgan expects RIL to turn free cash flow positive, even with continued investments in new energy, retail, and petrochemicals. With an annual EBITDA run-rate of $20 billion, the brokerage sees RIL's net debt to EBITDA remaining below 1x, indicating a healthy balance sheet and consistent cash flow generation. JPMorgan has an Overweight rating on the stock with a target price of Rs 1,568 by March 2026. RIL's consumer empire has been built on massive investment: Rs 6 lakh crore in free cash flow has been deployed into consumer businesses, creating Rs 18 lakh crore in equity value, according to Jefferies. Still, while consumer EBITDA has surged 30% over the past two years, post-minority contribution hasn't translated into proportional growth in PAT, a key gap analysts are monitoring. Also read | Reliance Industries share price prediction: Brokerages see up to 31% upside after Q4 results Telecom: The New Growth Engine The telecom juggernaut Jio is leading the earnings charge. Jefferies forecasts 21% EBITDA CAGR for Jio between FY25–27, supported by an improving pricing environment and growth in the home broadband business. 'We believe telecom is the best way to play consumption in India due to which valuations also have scope to re-rate,' Jefferies said, adding that moderating capex intensity will drive a 10x jump in free cash flow over FY25–27. Bernstein sees Jio's EBITDA margin expanding from 53.4% in FY25 to 58.8% in FY27, led by greater 4G/5G monetisation and ARPU upgrades. 'Telecom will remain the bright spot as ARPU hike reflects in earnings with capex continuing downward trend. We expect ~13% CAGR revenue growth for Jio over the next 2 years. We also expect acceleration in Jio AirFiber rollout, driving faster broadband additions and supporting overall growth momentum. Market share gains should continue as Jio reaches ~500 Mn subs & ~48% revenue share by FY27,' Bernstein's Rahul Malhotra said. Retail: Quiet Yet Powerful Retail is also scaling up fast. EBITDA CAGR for Reliance Retail is expected to clock 15–20% over FY25–27, according to Jefferies and Bernstein. Margins are improving too, seen rising from 7.6% in FY25 to 8.0% by FY27, driven by stronger growth in private labels and operational efficiencies. Bernstein estimates the retail EBITDA mix will reach 15% by FY27, while digital businesses (primarily Jio) will contribute 40–45% of total EBITDA over the next five years. 'We expect Retail to rebound post the store rationalization & get back to mid-single digit growth in FY25 and double digit growth in FY27. Retail capex should normalize with focus on improving revenue/sqft as older stores mature. We see the following reasons for retail to grow: (1) New tax laws boosting consumer spending with higher disposable income in the hands of individuals; (2) Weddings and festive seasons providing a boost to growth; (3) Fast fashion pace growing rapidly,' Bernstein said. With Mukesh Ambani 's consumer bet reshaping the future of India's most valuable company, analysts see chances of RIL shares getting re-rated. Also read | Reliance Industries shares at inflection point. 6 reasons why FY26 could be the year of big re-rating
Economic Times
11-06-2025
- Business
- Economic Times
Mukesh Ambani's consumer empire overtakes decades-old energy business of RIL
Live Events Telecom: The New Growth Engine Retail: Quiet Yet Powerful (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel Marking the transition of Asia's richest billionaire Mukesh Ambani from being an oil baron to a consumer titan, every second rupee of Reliance Industries Ltd's (RIL) operating cash profit now comes from its twin consumer-facing ventures of Reliance Retail and Reliance Jio 'Reliance Retail + Telecom now account for ~54% of total FY25 consolidated EBITDA,' wrote Sanjay Mookim , analyst at JPMorgan in a recent report. 'Prior to venturing into retail/telecom, RIL's earnings growth was determined by either capex (new refining/chemical capacities), or margin cycles. Capex cycles then tended to impact stock performance.'Back in FY17, a staggering 96% of Reliance's EBITDA came from its core energy operations. Fast forward to FY25, and the consumer verticals have taken center stage. According to JPMorgan, RIL's adjusted consolidated EBITDA is pegged at Rs 165,444 crore in FY25, rising to Rs 216,103 crore by FY28—driven almost entirely by Retail and Jio.'These will account for almost all of the net EBITDA growth over the next three years,' Mookim said. While the group operated at materially negative free cash flow over the past three years due to heavy telecom spending, that cycle is winding down. JPMorgan expects RIL to turn free cash flow positive, even with continued investments in new energy, retail, and an annual EBITDA run-rate of $20 billion, the brokerage sees RIL's net debt to EBITDA remaining below 1x, indicating a healthy balance sheet and consistent cash flow generation. JPMorgan has an Overweight rating on the stock with a target price of Rs 1,568 by March consumer empire has been built on massive investment: Rs 6 lakh crore in free cash flow has been deployed into consumer businesses, creating Rs 18 lakh crore in equity value, according to while consumer EBITDA has surged 30% over the past two years, post-minority contribution hasn't translated into proportional growth in PAT, a key gap analysts are telecom juggernaut Jio is leading the earnings charge. Jefferies forecasts 21% EBITDA CAGR for Jio between FY25–27, supported by an improving pricing environment and growth in the home broadband business.'We believe telecom is the best way to play consumption in India due to which valuations also have scope to re-rate,' Jefferies said, adding that moderating capex intensity will drive a 10x jump in free cash flow over FY25– sees Jio's EBITDA margin expanding from 53.4% in FY25 to 58.8% in FY27, led by greater 4G/5G monetisation and ARPU upgrades.'Telecom will remain the bright spot as ARPU hike reflects in earnings with capex continuing downward trend. We expect ~13% CAGR revenue growth for Jio over the next 2 years. We also expect acceleration in Jio AirFiber rollout, driving faster broadband additions and supporting overall growth momentum. Market share gains should continue as Jio reaches ~500 Mn subs & ~48% revenue share by FY27,' Bernstein's Rahul Malhotra is also scaling up fast. EBITDA CAGR for Reliance Retail is expected to clock 15–20% over FY25–27, according to Jefferies and Bernstein. Margins are improving too, seen rising from 7.6% in FY25 to 8.0% by FY27, driven by stronger growth in private labels and operational estimates the retail EBITDA mix will reach 15% by FY27, while digital businesses (primarily Jio) will contribute 40–45% of total EBITDA over the next five years.'We expect Retail to rebound post the store rationalization & get back to mid-single digit growth in FY25 and double digit growth in FY27. Retail capex should normalize with focus on improving revenue/sqft as older stores mature. We see the following reasons for retail to grow: (1) New tax laws boosting consumer spending with higher disposable income in the hands of individuals; (2) Weddings and festive seasons providing a boost to growth; (3) Fast fashion pace growing rapidly,' Bernstein Mukesh Ambani's consumer bet reshaping the future of India's most valuable company, analysts see chances of RIL shares getting re-rated.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
