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📊 Reliance Industries Ltd. (RIL) – India’s Diversified Growth Powerhouse

Lesson 175/225 | Study Time: 15 Min

Course: Top Quality Companies

📊 Reliance Industries Ltd. (RIL) – India’s Diversified Growth Powerhouse

🏢 Company Overview

Reliance Industries Ltd. (RIL) is India’s largest private-sector conglomerate with leadership across Energy (O2C, Oil & Gas), Retail, Digital Services (Jio Platforms), Media, FMCG, and an emerging New Energy segment. Its strategy blends legacy cash-flow engines with high-growth consumer and technology platforms, underpinned by strong execution capabilities.

🏢 Fairvalue:

https://docs.google.com/spreadsheets/d/e/2PACX-1vTZm6R2JLOiBNRt6EeAiIA_cANgWF3q_1Q11AJfrc-gxlZwmDRehBAjXe5h6C8-4z7qxU8onwnDVLBn/pubhtml?gid=1729675055&single=true

🌏 Industry & Growth Outlook

Energy/O2C: Benefiting from limited global refining additions, strong domestic demand, and polymer margin recovery.
Digital Services: Leading 5G deployment, deep tech infrastructure, and the largest wireless subscriber base in India (498M+ subs).
Retail: India’s largest and most profitable retail business with omni-channel dominance, 19,592 stores, and growing FMCG penetration.
New Energy: Fully integrated solar, battery, and green hydrogen ecosystem under construction; potential to be self-funded within a few years.

📈 Historical Performance – Revenue, Profit, and Margins

Year	Revenue (₹ Cr)	Net Profit (₹ Cr)	NPM %
FY1992	2,944	169	5.8%
FY2000	21,332	2,403	11.3%
FY2010*	2,20,558	24,503	11.1%
FY2020	6,12,437	39,880	6.5%
FY2024	9,14,472	79,020	8.6%
FY2025*	9,80,136	81,309	8.3%
Trailing FY26	9,92,579	94,701	9.5%

*Bonus issues

💡 Observation: Long-term revenue CAGR driven by continuous expansion into new businesses; margins fluctuate with commodity cycles but show structural improvement post-Jio/Retail scale-up.

📊 Valuation History – PE & PBV Bands

P/E Range (last 5 years): ~18.5x–31.2x (Current near mid-band)
P/BV Range (last 5 years): ~1.7x–2.6x (Current ~2.0x)

🆕 Q1 FY26 Highlights

Revenue: ₹2,48,660 Cr (↑ 5.3% YoY)
EBITDA: ₹50,988 Cr (↑ 38.4% YoY)
PAT: ₹31,134 Cr (↑ 75.5% YoY; includes ₹8,924 Cr gain from Asian Paints stake sale)
Margin: 12.52% vs. 7.5% YoY (Due to Asian Paint stake sell, other wise 8.9%)
EPS: ₹19.95 (↑ 78.3% YoY)
ICR: 4.1x

📂 Segment Performance – Q1 FY26

Segment	Revenue (₹ Cr)	Share	Growth YoY
O2C	1,54,804	51%	-1.5%
Retail	84,172	28%	11.3%
Digital Services	41,949	14%	18.3%
Oil & Gas	6,103	2%	-1.2%
Others	18,470	6%	52.9%

💡 Key Business Drivers

O2C: Higher domestic fuel placement (+34% diesel, +39% gasoline), polymer margin gains.
Retail: Growth across grocery, fashion, consumer electronics; FMCG revenue doubled YoY.
Digital: 210M+ 5G users; JioAirFiber now largest global FWA service; ARPU ₹208.8.
Oil & Gas: KG D6 price realization improved; CBM volumes up 21.7%.
New Energy: 55 CBG plants targeted by FY26-end; giga-factory commissioning underway.

🏭 Cost Structure – Q1 FY26

Major Cost	Amount (₹ Cr)	Share	Growth YoY
Raw Material	99,282	43.8%	-9.1%
Stock-in-Trade	57,582	25.4%	15.2%
Other Expenses	40,845	18.0%	25.7%
D&A	13,842	6.1%	1.8%
Employee	7,232	3.2%	2.3%

📅 FY26 & Long-Term Estimates

Year	Revenue (₹ Cr)	Net Profit (₹ Cr)	EPS (₹)	Margin %
FY26E	10,53,646	93775	59	8.9%
FY30E	16,57,933	1,44,048	91	8.7%
FY35E	29,21,844	2,53,862	160	8.7%

📈 Valuation Zones (FY26–FY35E)

Year	EPS (₹)	BV (₹)	Low Price	Fair Value	High Price
FY26E	59	676	₹940	₹1146	₹1456
FY30E	91	996	₹1,444	₹1,759	₹2,236
FY35E	160	1,605	₹2,545	₹3,101	₹3,940