Markets are bracing for a potential surge on Monday, fueled by an unexpected show of strength from Reliance Industries Ltd (RIL). India’s corporate giant delivered quarterly results that not only defied analyst expectations but also set the stage for a sharp rebound in the broader indices.
Despite a dip towards ₹1300 in Friday’s session — which weighed on overall sentiment — Reliance’s latest announcements could flip the script dramatically when trading resumes.
Quarter-on-Quarter Surge Signals Underlying Strength
While headline year-on-year figures initially appeared muted, a deeper look reveals a much more compelling story.
Reliance’s quarter-on-quarter performance surprised even the most seasoned market watchers, showcasing broad-based momentum across its key businesses.
The standout was Reliance Retail, which posted a remarkable 29% jump in net profit. With aggressive expansion — including the addition of 1,085 new stores this quarter — Reliance is fortifying its position as a retail powerhouse. Analysts now believe that the retail division alone could generate between ₹10,000 and ₹12,000 crore in annual net profits within the next four to five years.
Similarly, Jio Platforms continued to deliver strong growth, further diminishing the drag from the company’s traditional Oil-to-Chemicals (O2C) segment.
Dividend Boost and a Landmark Fundraising Move
Adding to the optimism, Reliance announced a dividend alongside its results, reinforcing its commitment to shareholder returns. However, the bigger story is its planned ₹25,000 crore fundraising initiative, disclosed on the same day as its earnings report.
For a company that commands a 9% weightage in the Nifty 50, such a major capital raise carries outsized significance.
It’s a strong signal of confidence in future expansion plans and a positive development for both Reliance shareholders and the broader market. In a currently oversold environment, this could serve as the catalyst needed to spark a sharp recovery.
Analysts suggest that even a 2% move in Reliance’s stock could propel the Nifty higher by 150 to 200 points, setting the stage for a potentially dramatic Monday rally.
Beating the Street by a Wide Margin
Reliance didn’t just outperform—it shattered expectations.
Brokerages had largely forecast net profits to remain below ₹21,000 crore. Instead, Reliance delivered a stellar ₹22,611 crore in net profit for the quarter, improving on the ₹21,930 crore posted previously.
Revenue, expenses, and operating profit all saw healthy sequential increases, indicating strong operating leverage at play.
Comparing performance across the past three quarters — September, December, and March — the company has shown a consistent upward trajectory, suggesting that the growth is not a one-off but part of a broader trend.
A Turning Point for Reliance — and for the Market
With its retail and telecom arms firing on all cylinders and Oil-to-Chemicals increasingly sidelined, Reliance is strategically repositioning itself for the next phase of growth.
The robust earnings, aggressive expansion, and major fundraising announcement mark a pivotal moment for the conglomerate — and by extension, for Indian equities.
As Monday approaches, all eyes will be on Reliance Industries — and it could very well be the catalyst that breathes new life into the markets.