1Q beat led by Energy, partly offset by soft Retail

Research evidence excerpt

1Q beat led by Energy, partly offset by soft Retail

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Reliance Inds

1Q beat led by Energy, partly offset by soft

Retail

Reiterate Rating: BUY | PO: 1,600 INR | Price: 1,329 INR

Healthy 1Q print powered by strong O2C & Oil/Gas 20 July 2026

RIL reported a strong 1Q with EBITDA/PAT ahead of Street as well as BofAe, driven by Equity

the mainstream energy segments. EBIT was 4% above BofAe/7.5% above consensus:

lead by 13% YoY O2C EBIT increase and 10% YoY Oil & Gas EBIT. O2C EBITDA +17%

Key ChangesYoY on stronger transportation-fuel cracks, downstream margins, crude-basket

diversification and favorable ethane economics, partly offset by SAED re-introduction on (Rs) Previous Current

diesel/MS/ATF. Oil & Gas EBITDA broadly flat YoY as higher KG-D6/CBM realizations and Price Obj. 1,650.00 1,600.00

forex offset a 10% YoY drop in volumes (planned turnaround, LPG diversion). 2027E EPS 63.84 63.47

2028E EPS 77.31 70.04

Retail was a soft spot: 7% YoY reported top-line growth/11.6% YoY ex RCPL de-merger.

2029E EPS NA 82.41

EBITDA margins were 60bps YoY lower at 6.6%. FMCG segment continues to do well

2027E EBITDA (m) 2,078,852.5 2,003,919.5

and has doubled top-line scale YoY, along with achieving EBITDA break-even. Mgmt in

2028E EBITDA (m) 2,361,692.9 2,215,247.7

the analyst meet highlighted planned scale-up of digital commerce with guard rails and

2029E EBITDA (m) NA 2,447,109.2

internal targets around CM etc. Investments in JioMart will continue towards expansion

of dark stores atleast for 9-12 months. Despite that, mgmt remains reasonably

Sachin Salgaonkar >>

confident of doubling absolute EBITDA over next 3 years for Retail business. Post 1Q, Research Analyst

we cut our EPS estimates to factor softer retail/higher than expected interest expense. BofAS India