Reliance Industries Ltd.
Energy · NSE
52-week range
₹1,290 – ₹1,612
From 52w high
-11.0%
RSI (14)
59.0
vs SMA 50 / 200
↑ 50 · ↑ 200
Reliance Industries (₹1,435) is a large-cap energy and consumer conglomerate trading marginally above its 200-DMA (₹1,433) after a virtually flat 12-month price return of +1.41%. The company reported record annual EBITDA of ₹2,07,911 crore in FY26 but net profit declined 12.5% in Q4, continuing a 5-year earnings CAGR of -12.6% even as revenues compounded at 12.5%; debt-to-equity stands at 36.65 with a rising trend. An active bribery investigation involving a Reliance subsidiary was reported by Reuters in April 2026.
- ✓Revenue scale and growth: 5-year revenue CAGR of 12.5% reaching a record ₹11,75,919 crore in FY26, with EBITDA margins of 17.7% and EBITDA growth of 13.4% YoY in the most recent quarter.
- ✓Forward PE of 19.98 represents a compression from the trailing PE of 24.05, indicating that analyst earnings estimates for the next period are higher than the current run rate — a directional improvement expected by the sell side.
- ✓Mean analyst rating of 1.3125 across 32 analysts (1–5 scale, lower = more constructive); coverage breadth reflects the stock's institutional prominence.
- ✓Jio (digital services segment) PAT grew 13% YoY in Q4 FY26, providing a higher-margin segment counterbalancing pressure in the energy business.
- ✗Earnings have declined at a -12.6% CAGR over 5 years despite strong revenue growth; ROE of 9.14% has never crossed 15% in the available history (roeYearsAbove15 = 0), indicating the business is not generating adequate returns on equity deployed.
- ✗Debt-to-equity of 36.65 with a rising debt trend and FCF positive in only 3 of available years; interest burden is likely a primary driver of the gap between EBITDA growth and net profit growth.
- ✗An active bribery investigation involving Asteria, a Reliance subsidiary, reported by Reuters on April 24 2026, introduces governance and regulatory risk with uncertain financial and reputational consequences.
- ✗Quality score of 29 ranks 5th of 6 sector peers; PE of 24.05 is the highest in the peer group against peers trading at 5.3–12.8x — the valuation premium is not accompanied by peer-leading profitability or return metrics.
- ·Q4 FY26 results (April 24–25 2026): Net profit fell 12.5% YoY; FY26 full-year EBITDA reached a record ₹2,07,911 crore (+13.4%), revenue ₹11,75,919 crore (+9.8% YoY); Jio PAT +13% YoY. The operational record and the net profit decline were reported simultaneously, reflecting below-EBITDA cost pressures.
- ·Reuters reported (April 24 2026) on Asteria — described as a Reliance unit — at the centre of a bribery scandal; the investigation's scope, timeline, and financial exposure have not been publicly quantified.
- ·The stock has returned +1.41% over 12 months and -1.48% over 3 months; at ₹1,435 it sits 0.15% above its 200-DMA (₹1,433) and 3.7% above its 50-DMA (₹1,385), with RSI at 59 in neutral territory and a 10.96% drawdown from its 52-week high.
- ?What is driving the divergence between EBITDA growing at 13.4% and net profit declining 12.5% — is it primarily interest costs on the rising debt load, elevated depreciation from capital expenditure cycles in Jio/Retail, or a combination?
- ?How material is the Asteria bribery investigation in terms of the subsidiary's contribution to consolidated revenues, and what precedent do comparable regulatory actions in India suggest about timeline and penalty scale?
- ?Does the valuation premium versus sector peers (PE 24 vs 5–13 for ONGC, BPCL, GAIL, COALINDIA) reflect the conglomerate's diversified business mix, or does the earnings trajectory over 5 years call that premium into question?
- ?At what point in the capital expenditure cycle for Jio and Retail does Reliance's FCF profile shift structurally — and does the current debt-to-equity level of 36.65 provide sufficient headroom if that transition is delayed?
PE
24.1
Forward PE
20.0
ROE
+9.1%
Profit margin
+7.6%
D/E
36.65
Dividend yield
+0.4%
Quality score
29/100
ROE 5y above 15%
0/5 yrs
FCF 5y positive
3/5 yrs
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.Analysis generated 10 May 2026.