Reliance Industries Shares Jump After Strong Quarterly Earnings

What happened

Reliance Industries said second-quarter net profit rose 41% year over year to 255.48 billion rupees, beating analysts’ estimate of 213.48 billion rupees. Citi raised its fiscal 2027–2028 earnings forecasts by 4% to 7%, citing a stronger oil-to-chemical business, but warned retail weakness could limit share gains.

Confirmed

Global impact / market context

Higher oil-to-chemical earnings could lift Reliance’s future profits, while continued retail weakness could offset that support. These businesses can therefore pull expected company earnings in different directions, influencing investors’ assessments of future cash generation and the value they place on the shares.

Analyst inference

Citi raised its fiscal 2027–2028 earnings forecasts by 4% to 7% but lowered its target price to 1,490 rupees from 1,690 rupees. That contrast reflects optimism about oil-to-chemical earnings alongside concern that retail weakness may constrain further gains.

Confirmed

What to watch

1. Check future results for evidence that the oil-to-chemical business is stronger, since Citi linked that business to its higher fiscal 2027–2028 earnings forecasts. Analyst inference
2. Watch for signs that retail weakness continues; Citi said it could limit further share gains, potentially offsetting stronger earnings from the oil-to-chemical business. Analyst inference
3. Compare later reported profits with analyst estimates to assess whether Reliance continues to exceed expectations, which could alter forecasts of earnings and future cash generation. Analyst inference

Evidence

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