Sat Jan 18 15:08:38 UTC 2025: ## Reliance Industries Q3 Results Spark Share Price Surge, But Cautions Remain

**Mumbai, India** – Reliance Industries Limited (RIL), the Mukesh Ambani-led conglomerate, saw its share price rebound significantly following strong Q3 results, defying a broader market downturn. While benchmark indices Sensex and Nifty fell over 2% year-to-date, RIL shares surged nearly 7%.

The company exceeded D-Street estimates with a 12% year-on-year (YoY) jump in net profit to ₹21,930 crore and a 19.4% YoY increase in revenue from operations. All segments—retail, oil-to-chemicals (O2C), and telecom—contributed to the robust performance. Retail profits soared 10% YoY to ₹3,458 crore, while the O2C segment rebounded with a 2.4% rise in EBITDA to ₹14,402 crore. The telecom arm boasted 482.1 million subscribers and an average revenue per user (ARPU) exceeding ₹200. Reliance’s strong performance during the typically subdued festive season was a key highlight.

Analysts attribute the share price surge to RIL’s shares previously trading near their bear-case scenario, suggesting significant upside potential. However, concerns remain. The O2C segment, particularly petrochemicals, faces uncertain margins despite strong domestic demand offsetting global headwinds. Profitability from the new energy business is also expected to take time. Potential competitive pressure from Vi’s upcoming 5G plans could also impact Jio’s ARPU.

Despite these risks, major global brokerages like Nomura, Goldman Sachs, and Citi maintain a “Buy” rating on RIL, citing strong margins and the potential boost from Jio’s upcoming IPO and the new energy business. Nomura projects a 26.4% upside potential, while Goldman Sachs sets a target price implying a 25.3% upside.

While the Q3 results offer a positive outlook, the long-term performance hinges on the O2C segment’s ability to navigate uncertain global market conditions. The company’s success will depend on managing these challenges while capitalizing on the growth potential in its retail and telecom sectors.

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