Reliance Industries revenue increased to ₹2.65 lakh crore from ₹2.55 lakh crore in the previous quarter, while EBITDA edged up to ₹46,018 crore from ₹45,886 crore. RIL's EBITDA was at a seven quarter high.
Operating margin moderated to 17.4% from 18%, even as profit after tax increased to ₹18,645 crore compared with ₹18,165 crore quarter on quarter.
The oil-to-chemicals business posted stronger EBITDA of ₹16,507 crore, higher than ₹15,008 crore in the previous quarter and ₹14,402 crore a year ago.
In contrast, oil and gas EBITDA declined to ₹4,857 crore from ₹5,002 crore in Q2 and ₹5,565 crore a year ago.
Reliance Retail posted 8.4% year-on-year growth, aided by the demerger of Reliance Consumer Products, festive season demand and GST rate rationalisation. Jio's ARPU improved 5.1% year-on-year and 1.1% quarter-on-quarter to ₹213.7 per share.
On the earnings call, the company said the Jio IPO is imminent and the process is currently underway.
Here's how brokerages reacted to RIL Q3
CLSA maintained an 'Outperform' rating on the stock with a target price of ₹1,650.
The brokerage said a sharp fall in retail margins led to a 3% miss in consolidated Q3 EBITDA, even as profit was broadly in-line with expectations.
It said that an exit rate of 1.6 million daily orders in Q3 points to a scale-up in quick commerce, although this is yet to translate into a visible boost in reported retail numbers.
CLSA added that core metrics across Jio, FMCG and the media business remain robust, while progress on new energy projects is encouraging.
It also said the more than $20 billion erosion in market capitalisation over the past two weeks may have already priced-in the weakness in retail.
Citi reiterated its 'Buy' call with a target price of ₹1,815.
The brokerage cited the expectedly strong O2C performance, with EBITDA up 10% QoQ, steady Jio performance, and gradual progress in new energy plans.
On the downside, Citi flagged moderation in retail net revenue and core EBITDA growth to around 11% and 2% YoY, respectively, after adjusting for the Reliance Consumer Products demerger, along with higher unallocable expenses.
Net debt remained largely stable, and Citi said the recent 8% correction in the stock over the past two weeks likely limits meaningful downside, even if the soft earnings print weighs in the near term.
Goldman Sachs retained its 'Buy' rating with a target price of ₹1,820, citing that core Q3 EBITDA was about 2% below its estimates.
The brokerage said retail underperformed as expected, while O2C EBITDA continued to improve as stronger refining cracks more than offset lower Russian crude intake, higher freight rates and petrochemical weakness.
It mentioned Jio's 8% YoY growth in wireless revenue, driven by robust subscriber additions, and pointed to progress in new energy, including the commissioning of 10 GW solar module and cell manufacturing lines and plans to commission the polysilicon plant in CY26.
JPMorgan maintained an 'Overweight’ rating with a target price of ₹1,675.
The brokerage said a beat in O2C earnings was offset by weaker retail EBITDA, which was hurt by slower topline growth of 9% YoY and sharply lower margins, partly due to rapid expansion in quick commerce.
It added that Jio delivered steady subscriber and ARPU growth with stable margins.
Post the recent correction, JPMorgan believes Reliance's relative valuations have improved, with catalysts through 2026 including the Jio listing, potential tariff hikes and the ramp-up of the solar and battery ecosystem.
Morgan Stanley kept its 'Overweight' rating and a target price to ₹1,847, describing the weak earnings quality in retail as a clearing event that is now well priced in.
The brokerage said catalysts in energy and AI outweigh near-term volatility in retail growth, citing positives in new energy execution and refining, while flagging weaker retail topline growth and higher consolidated unallocated costs. Digital, upstream oil and O2C performance were broadly in line with expectations.
Kotak Institutional Equities retained an 'Add' rating with a target price of ₹1,620.
While it acknowledged a weak quarter for retail, the brokerage said the outlook remains constructive for both retail and telecom.
It cautioned that as cheaper Russian crude is replaced with more expensive alternatives, headwinds could persist for the O2C business.
Jefferies reiterated its 'Buy' rating with a target price of ₹1,795, noting that a revival in retail growth and a tariff hike in Jio remain key triggers for the stock going ahead.
35 out of the 37 analysts covering Reliance Industries have a 'Buy' rating on the stock, while two have a 'Sell' recommendation.
Shares of Reliance Industries closed 0.15% higher on Friday at ₹1,461, ahead of the earnings announcement.
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