Why is the Reliance Industries Share Price Falling?

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Reliance Industries (RIL) has conducted its annual general meeting (AGM) to announce developments ranging from artificial intelligence to new energy expansion through global collaborations. Shares of  Reliance Industries posted their highest-ever quarterly profit in Q1 FY26. Net profit rose 76.5% year-on-year to ₹30,783 crore. Yet, the stock declined by nearly 3% after the results were announced. India’s most valuable firms reported their highest-ever consolidated quarterly EBITDA and net profit, driven by robust performances in its telecom and other sectors. Reliance Industries investors’ sentiment shifted noticeably in 2025, reflecting the market volatility of the company.

Key Reasons for Declining in the Share Price of Reliance Industries

There are significant reasons behind the fall in Reliance Shares. Analysts listed four primary reasons, including the historical trend, Jio’s IPO pipeline, capital expenditure-heavy business, and weak stock market sentiment. While the RIL share price has declined by 4% over the last month and 4% in the past week, it has delivered a 13% return over the past six months. 

Below are the reasons for the decline in the share price of Reliance Industries 

• Historical Pattern: Dr VK Vijaykumar, Chief Investment Strategist at Geojit Investments, noted that the RIL stock has continued to drift down on the AGM day over the last four years, which is a notable departure from past trends.
• Jio IPO Timeline: Although an IPO timeline was confirmed, the target of the first half of 2026 was viewed as a delay by some investors who had hoped for a listing in 2025. This leads to an initial surge of excitement among people, but the results negatively impact their reaction, which is why the share is falling.
• Investment cycle optics: As RIL remains capex-heavy (FY25 capex ~  ₹1.31 lakh crore), investors wanted sharper near-term monetisation for the AI and device reveals, according to Dasani, who believes they will need time before any positive EBITDA move.
• Weak D- Street Segment: The overall market sentiment was weak on the day of the AGM, with a general downtrend influenced by broader economic factors, including foreign institutional investor (FII) selling. This market-wide pressure contributed to the stock’s decline. 
• Segmental Underperformance: The overall profit of Reliance Industries has fallen short, particularly in the Oil-to-Chemicals (O2C) and retail sectors, which have negatively impacted the company’s share price.
• Execution Risks & Capital Expenditure Burden: As we know, reliance on expanding into new energy, digital, and infrastructure sectors is increasing its capital expenditure burden, which leads to higher expectations and risks. Some investors may be concerned about the regular returns needed to justify the investment.

Reliance Industries Ltd: An Overview

Reliance Industries Ltd. is an Indian multinational conglomerate headquartered in Mumbai. Its businesses include energy, petrochemicals, natural gas, retail, telecommunications, mass media, and textiles. Reliance is the largest public company in India by market capitalisation and revenue, and the 86th largest company worldwide. Reliance Industries is a Fortune 500 company and the largest private sector corporation in India.

Reliance is a pioneer in having started the equity revolution in India. Over the years, it has consistently delivered superior returns to shareholders and investors. The Market Capitalisation of Reliance Industries for FY2024-25 is approximately ₹17,25,378 crore ($201.9 billion), and it is considered the first Indian Company to consolidate a total equity of over ₹10,00,000 crore ($117 billion). It is one of the largest taxpayers (direct and indirect) in India. The total contribution to the National Exchequer for FY2023-24 is approximately ₹1,86,440 crore ($22.4 billion) 

Reliance Industries: Performance Analysis

Revenue of Reliance Industries for FY2019, FY2020, FY2021, FY2022, FY2023, FY2024 and FY2025 is ₹6,25,212 crore, ₹6,59,205 crore, ₹5,39,238 crore, ₹7,88,743 crore, 9,74,864 crore, and ₹10,00122 crore. The share of revenue from the diversified segments of Reliance Industries is as follows: Oil to Chemicals, Retail, Digital Services, Oil and Gas, at 53.12%, 26.68%, 11.05%, 6.77%, and 2.38%, respectively. Consolidated EBITDA for the year increased by 16.1% to ₹1,78,677 crore as compared to ₹1,53,920 crore in FY2022-23. The return on net worth fell to 10.3% in FY2023-24, compared to 10.9% in the previous year, due to marginally lower profits resulting from weak O2C earnings and a higher valuation. The inventory turnover ratio decreased to 7.31 in FY2023-24, compared to 10.49 in the previous year, primarily due to higher inventory levels.    

Growth Prospects and Positive Factors: A Future Anticipation 

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• Reliance reported record profit, but much of it came from a one-time gain. The core profit and EBITDA were strong, but not as high as the headline numbers suggested.
• The main businesses continued to grow. But Oil to Chemicals and retail fell slightly short of what the market expected. Jio performed well, but that was already known and priced in.
• Revenue growth was slower than usual. Some parts of the business, such as electronics in Retail, faced seasonal impacts. Oil-to-Chemicals saw lower volumes due to planned shutdowns. 
• The market is now looking at how much of this growth is repeatable. Investors want to see more substantial core numbers in the next few quarters. 

What are the future Predictions of Analysts?

Reliance Industries Ltd. has an average share price target of 1607.67. The consensus estimate represents an upside of 17.41% from the last price of 1369.30. According to JPMorgan, RIL still appears inexpensive on two counts: 

Holding Company Discount: The implied discount has narrowed only marginally in 2025, as valuations for peers Bharti Airtel and Avenue Supermarts (DMart) have also risen, preserving RIL’s relative value proposition.

Retail Valuations: Reliance Retail’s implied EV/EBITDA multiple continues to trade at a wider discount to DMart, even after adjusting O2C at 7.5x EBITDA and valuing Jio at Bharti’s multiples. 

“RIL is likely to deliver a better two-year EPS CAGR, given limited further downside to O2C. With relatively comfortable valuations, this could help the stock perform well. The annual report emphasised the scale-up of AI services, connectivity offerings, expanding media offerings, and the integration of new energy value chains as key focuses for RIL. 

What is the Right Time to Buy Reliance Industries Shares?

According to analysts, the share price of Reliance Industries Ltd. is determined by market factors. Currently, the share price has decreased due to internal company reasons, as discussed above. Therefore, investors must review all factors before investing in Reliance Industries. There are some factors to consider before investing in Reliance Industries:

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• Financial Statements: Investors must analyse the financial statements of the company before investing in Reliance Industries, as they need to review the company’s fundamentals to make an informed decision. 
• Valuation & Market Expectations: Reliance stocks primarily offer shares at a premium valuation due to their profitability and goodwill; therefore, investors must consider the holding company discount.
• New Energy Transition & Capex: The primary investment of Reliance Industries is primarily in green hydrogen, solar, and battery manufacturing, which also impacts the company’s investment capacity. 
• Government Regulation: Always consider government regulations before investing in Reliance Industries, as the government’s regulations can be flexible, allowing investors to make informed decisions.  

How to Invest in the Reliance Industries Ltd.?  

Investors shall follow the steps given below for investing in Reliance Industries:

Step 1: Investors should evaluate the reasons behind the investment and assess the optimal method for investing.

Step 2: Research the top diversified sectors of Reliance Industries to make informed decisions. 

Step 3: To generate the higher returns, choose the best shares to grow fundamentally.

Step 4: Open the demat account on the Univest App and place a buy order for the quantity of stocks you wish to purchase.

Step 5: Execute the order and start tracking your portfolio from the Univest App from day one to identify the proper exit position for profit booking.

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Conclusion

Reliance Industries Limited (RIL) has conducted its annual general meeting (AGM) to announce developments ranging from artificial intelligence to new energy expansion through global collaborations. Shares of  Reliance Industries posted their highest-ever quarterly profit in Q1 FY26. Net profit rose 76.5% year-on-year to ₹30,783 crore. Yet, the stock declined by nearly 3% after the results were announced. Reliance Industries Ltd. has an average share price target of 1607.67. 

The consensus estimate represents an upside of 17.41% from the last price of 1369.30. Investors must analyse the financial statements of the company before investing in Reliance Industries, as they need to review the company’s fundamentals to make an informed decision. Reliance is the largest public company in India by market capitalisation and revenue, and the 86th largest company worldwide. Reliance Industries is a Fortune 500 company and the largest private sector corporation in India.

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FAQs

What are the reasons for the fall in Reliance Industries share?

Ans. There are significant reasons behind the fall in Reliance Shares. Analysts listed four primary reasons, including the historical trend, Jio’s IPO pipeline, capital expenditure-heavy business, and weak stock market sentiment. While the RIL share price has declined by 4% over the last month and 4% in the past week, it has delivered a 13% return over the past six months. 

What is the right time for investing in the Reliance Industries Ltd?

Ans. The primary investment of Reliance Industries is primarily in green hydrogen, solar, and battery manufacturing, which also impacts the company’s investment capacity. Always consider government regulations before investing in Reliance Industries, as the government’s regulations can be flexible, allowing investors to make informed decisions. 

What is the financial performance of Reliance Industries Ltd.?

Ans. Revenue of Reliance Industries for FY2019, FY2020, FY2021, FY2022, FY2023, FY2024 and FY2025 is ₹6,25,212 crore, ₹6,59,205 crore, ₹5,39,238 crore, ₹7,88,743 crore, 9,74,864 crore, and ₹10,00122 crore. The share of revenue from the diversified segments of Reliance Industries is as follows: Oil to Chemicals, Retail, Digital Services, Oil and Gas, at 53.12%, 26.68%, 11.05%, 6.77%, and 2.38%, respectively. Consolidated EBITDA for the year increased by 16.1% to ₹1,78,677 crore as compared to ₹1,53,920 crore in FY2022-23. 

What are the prospects of investing in Reliance Industries?

Ans. RIL is likely to deliver a better two-year EPS CAGR, given the limited further downside to O2C. With relatively comfortable valuations, this could help the stock perform well. The annual report emphasised the scale-up of AI services, connectivity offerings, expanding media offerings, and the integration of new energy value chains as key focuses for RIL. 

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