Reliance Q4 Results FY26: Profit Drops 13%, Sales Up

What Reliance reported in Q4

Reliance Industries reported a 13% year-on-year decline in consolidated net profit for the quarter, with profit coming in at INR 16,971 crore. At the same time, revenue from operations rose 13% year-on-year to INR 298,000 crore. The combination points to pressure on profitability despite steady top-line expansion. The update also underlined a divergence between revenue growth and margin trends during the quarter. For investors, this split often becomes the key discussion point because it affects how near-term earnings quality is judged. The numbers were shared as part of live updates around the company’s quarterly results.

Profitability pressure despite resilient revenue

A revenue rise alongside a profit decline usually signals either higher costs, weaker margins, or a mix of both. In this case, the company’s Q4 print highlighted that revenue momentum did not translate into profit growth. The result puts attention on how Reliance’s large businesses are performing at an operating level, particularly when costs or competitive intensity rise. The quarter also becomes a reference point for analysts tracking whether the business is moving through a temporary margin dip or a longer reset. The live updates framed the quarter as one where profitability was under pressure even as sales stayed firm.

Reliance Jio: profit growth stands out

Within the broader set of updates, Reliance Jio was highlighted as a positive element. Reliance Jio reported consolidated profit after tax of INR 7,935 crore, up 13% year-on-year. The number indicates that the telecom business continued to deliver earnings growth even as consolidated profit declined. Such contrast matters because Jio is a significant driver in the group’s long-term investment narrative. In the same set of updates, the board also approved a dividend of INR 6 per share for FY26. Dividend decisions are closely watched because they reflect management’s stance on cash returns alongside capital allocation.

Broker view: Motilal Oswal reiterates BUY, TP INR 1,750

Motilal Oswal Financial Services maintained a BUY rating on Reliance Industries with a target price of INR 1,750 per share. The brokerage’s note framed the current geopolitical scenario as a potential upside catalyst and pointed to support from strong refining margins. In one trading reference included in the updates, Reliance Industries stock settled nearly flat at INR 1,391.85 on the BSE on Thursday (March 12). The brokerage’s stated upside was about 26% from the then market price near INR 1,392.

Energy market disruption and the O2C earnings linkage

Motilal Oswal argued that geopolitical disruptions, particularly around the Strait of Hormuz, were tightening energy markets and boosting refining margins. It cited disruption of nearly 20% of global crude and product supply as a factor creating a favourable environment for Reliance’s oil-to-chemicals (O2C) business. The note added that even if tensions ease, supply chain normalisation may lag, which could keep product cracks elevated. The same line of reasoning supported the view that refining spreads and petrochemical pricing could lift earnings momentum in coming quarters. This is central for Reliance because O2C remains a key contributor in the group’s cash flow profile.

Scenario impact: potential EBITDA upside if disruption persists

The brokerage note included an estimate tied to a defined scenario. If market disruptions persist through the first half of FY27, analysts estimated an 8.5% upside to EBITDA forecasts. The same scenario analysis said Reliance’s O2C EBITDA could rise by nearly INR 17,000 crore, translating into an estimated 8.5% upside to FY27 consolidated EBITDA projections. The updates also flagged that policy intervention could limit upside potential for the O2C segment. These scenario-based estimates were presented as sensitivity to market conditions rather than as a baseline.

How brokerages valued Reliance across businesses

The updates included a sum-of-the-parts style breakdown used to support the INR 1,750 target price. It assigns per-share values to major businesses and adjusts for net debt.

Other brokerage views: Morgan Stanley and CLSA

The text also referenced Morgan Stanley reiterating its ‘Overweight’ rating on Reliance Industries with a target price of INR 1,803, implying upside of around 29% from current levels cited in that note. Morgan Stanley linked its stance to tight global oil markets keeping refining margins elevated, supporting the earnings outlook.

CLSA was cited as maintaining a Buy rating with a target price of INR 1,730, with a view that the current price reflects near-term retail EBITDA pressure from quick commerce ramp-up. CLSA also expected strong medium-term growth, with 15-16% EBITDA compounding in Digital and 14-16% EPS CAGR over the next 3-5 years. It added that a potential Jio IPO could introduce a holding company discount on Reliance’s stake, but said the risk is overstated.

Market indicators and sentiment snapshots cited in the updates

The text also referred to technical and market-sentiment markers around the stock at another point in time. It said Reliance Industries shares hit their most oversold level in five years, with a 14-day RSI of 24.4, alongside an 11% stock decline described as the worst year start since 2011. It also mentioned USD 29 billion in market cap erosion in 2026. These indicators are often cited to explain how positioning and sentiment can shift quickly around results, sector headlines, and policy-related concerns.

Why this quarter matters for investors

The Q4 update matters because it captures a clear split: revenue from operations grew 13% year-on-year to INR 298,000 crore, while consolidated net profit fell 13% to INR 16,971 crore. That gap is where most of the debate sits, especially for a diversified group where segment mix and margins can change quarter to quarter. Reliance Jio’s profit growth to INR 7,935 crore, up 13% year-on-year, provided a counterpoint to the consolidated profit decline. On the external view side, broker notes highlighted both near-term pressures such as retail EBITDA impact from quick commerce ramp-up, and potential upside drivers such as elevated refining margins during supply disruption.

Conclusion

Reliance’s Q4 results showed steady sales growth but weaker profit, with net profit at INR 16,971 crore and revenue at INR 298,000 crore. The quarter kept attention on margins, while Jio’s INR 7,935 crore profit and the FY26 dividend of INR 6 per share were notable positives. Brokerages continued to publish targets around the stock, with Motilal Oswal at INR 1,750 and Morgan Stanley at INR 1,803, largely anchored to refining margin assumptions and segment valuations. Investors are likely to track how quickly profitability stabilises alongside the evolving outlook for O2C margins, retail profitability, and the group’s digital growth trajectory.