Reliance Industries Ltd.
NSE: RELIANCEReliance Industries Ltd.: A 30-second snapshot
Reliance Industries trades at ₹1,309.50, 18.4% below its 52-week high, with the price below both the 50-DMA (₹1,345) and 200-DMA (₹1,416). The company reported record FY26 revenue and a ₹1,44,271 crore capex outlay, yet the 5-year earnings CAGR stands at -12.6% even as revenue has compounded at +12.5% over the same period. D/E of 36.65 is rising, quality score ranks last among 6 Energy peers, and the recently announced Jio Platforms IPO is the dominant near-term narrative catalyst.
P/E
22.0
Forward P/E
18.2
ROE
+9.1%
Debt / Equity
36.65
Profit Margin
+7.6%
Div. Yield
+0.5%
5Y ROE > 15%
0/5
5Y FCF > 0
3/5
Quality
47/100
News
8 headlines · 7 positive · 1 negative
Reliance spent Rs 1,44,271 crore on capex in FY26; posts record revenue and net profit - Moneycontrol.com
Moneycontrol.com
Jio IPO may unlock value and trigger Reliance rerating, say experts - Business Standard
Business Standard
RIL to convert all oil it refines into chemicals, new materials, to create 2,00,000 green jobs - The Hindu
The Hindu
IPO: Reliance Jio announces what may be India's biggest-ever share sale - BBC
BBC
India's Reliance Industries approves draft papers for Jio Platforms IPO, says Ambani - Reuters
Reuters
Recent context
- ·Reliance reported record FY26 revenue and net profit alongside ₹1,44,271 crore of capex, the highest in company history; the company announced plans to convert all refined oil into chemicals and new materials with a stated target of 2,00,000 green jobs.
- ·Jio Platforms draft papers for an IPO were approved by the board in June 2026 in what is described as potentially India's largest-ever share sale; multiple analysts cited the IPO as a potential event that could alter the conglomerate's valuation structure.
- ·News sentiment across 8 articles collected is 7 positive and 1 negative; the dominant coverage themes are the Jio IPO announcement, FY26 results, and the O2C strategic pivot — with no active regulatory or governance headline flagged.
Strengths
- +Revenue has compounded at 12.5% annually over 5 years, with FY26 described as a record revenue year, demonstrating scale-building across the O2C, retail, and digital segments.
- +Forward PE of 18.23 represents a meaningful compression from the trailing PE of 21.96, implying that earnings expectations for FY27 are materially higher than the FY26 reported figure.
- +FCF was positive in 3 of the available tracked years, and the Jio Platforms IPO — if executed — would represent a potential capital-structure event that could alter the debt trajectory.
- +Mean analyst rating of 1.28 across 32 analysts (1–5 scale, lower = more constructive), reflecting constructive coverage from a large institutional sell-side base.
Weaknesses
- −5-year earnings CAGR of -12.6% diverges sharply from the 12.5% revenue CAGR, indicating that interest expense and depreciation on cumulative capex of ₹1,44,271 crore in FY26 alone are absorbing operational gains before they reach net profit.
- −D/E of 36.65 with a confirmed rising debt trend and FCF positive in only 3 of tracked years; the debt trajectory adds refinancing and interest-burden exposure that is disproportionate relative to Energy peers.
- −ROE of 9.14% ranks 5th of 6 in the Energy peer group — below COALINDIA (28.12%), BPCL (28.47%), IOC (20.97%), and ONGC (12.7%) — and zero years above 15% are recorded in tracked history.
- −Quality score of 32 ranks last (6th of 6) in the peer group against a group high of 77 (COALINDIA); the stock also carries the highest PE (21.96) in the group without a corresponding return or quality premium.
Open questions
- ?Does the forward PE compression from 21.96 to 18.23 reflect a realistic earnings recovery, or does the five-year trend of earnings declining while revenue grows suggest that the structural cost drag from debt and depreciation will persist?
- ?If the Jio Platforms IPO is executed at a material valuation, to what extent would the proceeds reduce the D/E ratio of 36.65, and would that be sufficient to change the company's FCF trajectory?
- ?The stock has ranked last on quality score and ROE among Energy peers despite the highest PE in the group — how does the market's premium multiple get sustained if profitability metrics do not converge toward peer medians?
- ?How does the planned conversion of all refined oil output into chemicals and new materials affect the earnings profile over the next 5 years, and what capex commitments does that transition require beyond FY26's ₹1,44,271 crore?
Peer comparison: Energy
Ranks 5 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| RELIANCE | Reliance Industries Ltd.You're viewing | 22.0 | +9.1% | 32 |
| Industry avg | across 5 peers | 8.3 | +19.8% | 50 |
| COALINDIA | Coal India Ltd. | 9.0 | +28.1% | 77 |
| BPCL | Bharat Petroleum Corporation Ltd. | 5.1 | +28.5% | 55 |
| ONGC | Oil & Natural Gas Corporation Ltd. | 7.5 | +12.7% | 53 |
| IOC | Indian Oil Corporation Ltd. | 4.7 | +21.0% | 49 |
| GAIL | GAIL (India) Ltd. | 15.1 | +8.7% | 16 |
Technical state
Current price
₹1,309.50
SMA 50
₹1,345.46
SMA 200
₹1,415.83
RSI (14)
46.8 (neutral)
From 52w high
-18.4%
1Y return
-7.7%
3M return
-5.0%
50-DMA
Below
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- high5-year earnings CAGR of -12.6% against revenue CAGR of +12.5%. Revenue scale-up has not translated to bottom-line growth; ROE stands at 9.14% with zero years above 15% in tracked history and a consistency score of 26, indicating that interest expense and depreciation on heavy capex have absorbed operational gains throughout the period.
- highDebt-to-equity of 36.65 with a confirmed rising debt trend. FCF was positive in only 3 of the available tracked years. FY26 capex of ₹1,44,271 crore compounds this leverage. Elevated and rising debt alongside a declining 5-year earnings trajectory creates refinancing and interest-burden exposure that is disproportionate to the peer group.
- mediumPrice of ₹1,309.50 is below both the 50-DMA (₹1,345.46) and the 200-DMA (₹1,415.83). The stock is 18.38% off its 52-week high, down 7.71% over 12 months and 5% over the past 3 months. RSI of 46.8 sits in the mid-neutral range. Nearest support cluster is at ₹1,300–1,307.
- mediumRELIANCE ranks last (6th of 6) on both quality score (32 vs peer-group high of 77 for COALINDIA) and ROE (9.14% vs BPCL at 28.47% and COALINDIA at 28.12%). It carries the highest PE in the peer group at 21.96, against peers ranging from 4.70 (IOC) to 15.10 (GAIL), without corresponding quality or profitability leadership.
Cross-section contradictions
- Revenue grew at a 5-year CAGR of 12.5% while the 5-year earnings CAGR is -12.6%. The divergence indicates that below-EBITDA cost lines — notably interest expense on rising D/E and heavy capex-driven depreciation — are absorbing revenue gains before they reach net profit.
- Mean analyst rating of 1.28 across 32 analysts (1–5 scale, lower = more constructive) coexists with the stock ranking last in its peer group on quality score (32 vs group high of 77), zero years of ROE above 15%, a five-year earnings decline, and a price below the 200-DMA.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 25 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 21 Jun 2026 · rotates through NIFTY 500 every ~5 days