Reliance Industries Limited (RIL), India’s largest conglomerate, faced a sharp sell-off in its stock on January 19, 2026, following the release of its Q3 FY26 results. The share price fell nearly 4%, leading to a staggering ₹65,000 crore erosion in market capitalization.
Key Highlights of Q3 FY26 Results
| Segment | Performance |
|---|---|
| Consolidated Net Profit | ₹22,167–22,290 crore, up ~2% YoY |
| Revenue from Operations | ₹2,69,496 crore, up 10.5% YoY |
| Oil-to-Chemical (O2C) | EBITDA up 14% YoY |
| Reliance Jio | Profit up 11% YoY; ARPU rose to ₹213.7 |
| Retail Segment | Weak performance, missed estimates |
Why Did the Stock Fall?
- Retail Weakness: Analysts flagged muted growth in the retail segment, which dragged overall performance.
- Profit Miss: Despite revenue growth, net profit growth was marginal, missing Street estimates.
- Global Sentiment: Reliance GDRs slipped 2% on the London Stock Exchange, signaling weak investor confidence.
- Brokerage Downgrades: Morgan Stanley, Jefferies, and Citi cut target prices, citing retail weakness and subdued outlook.
Market Reaction
- RIL shares fell nearly 4% intraday, making it one of the biggest drags on the Nifty 50.
- The decline wiped out ₹65,000 crore in market capitalization, underscoring investor disappointment.
- Analysts expect near-term volatility, with the stock likely to consolidate before any recovery.
Brokerages on RIL
- Morgan Stanley: Cut target price, citing weaker-than-expected retail performance.
- Jefferies: Highlighted strong Jio numbers but warned of retail drag.
- Citi: Lowered target price, maintaining cautious outlook.
Outlook Ahead
While Reliance’s telecom and O2C businesses remain strong, the retail segment’s underperformance has raised concerns. Investors are advised to monitor:
- Retail recovery trajectory in the coming quarters.
- Global energy prices impacting O2C margins.
- Jio’s continued growth as a stabilizing factor.
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Conclusion: Reliance Industries’ Q3 results highlight strong telecom and O2C growth but retail weakness has spooked investors. With brokerages cutting target prices, the near-term outlook remains cautious, though long-term fundamentals continue to support the conglomerate’s diversified growth story.
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