Why Reliance Industries Shares Dropped Despite Record Profits
Reliance Industries' shares fell 2.7% after reporting its highest-ever profit due to missed estimates in key business segments. Despite strong earnings, operational performance in Retail and O2C segments fell short of expectations, leading to concerns among analysts.
Shares of Reliance Industries (RIL) fell 2.7% despite reporting its highest-ever profit and EBITDA in Q1 results. The profit was boosted by the sale of Asian Paints stake and lower interest expenses and taxes. Brokerages noted that numbers missed estimates across key segments. Reliance Retail's disappointing performance concerned analysts due to weaker revenue growth. The Oil-to-Chemicals business also underwhelmed with weaker performance. However, Reliance Jio continued its strong performance trajectory with rising EBITDA and subscriber addition.
RIL management remains optimistic about future growth prospects, aiming to double EBITDA by 2029. Analysts are positive about RIL's new energy initiatives. Despite the mixed quarterly results, most major brokerages maintained positive ratings on RIL shares.
According to the source: The Economic Times.
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