Reliance Industries' Global Depository Receipts (GDRs) experienced a notable decline on Friday, slipping around 2% to $64.40 on the London Stock Exchange. This drop came shortly after the company announced its December quarter financial results late in the evening.
Market Reaction to Q3 Performance
Mukesh Ambani-led Reliance Industries (RIL) posted its Q3 FY26 results on January 16. The conglomerate reported a consolidated profit of ₹22,167 crore for the December quarter. This figure represents an almost 2% year-on-year increase from the previous year.
Mahesh M Ojha, AVP of Research at Kantilal Chaganlal Securities, commented on the market's response. He stated that London investors appeared dissatisfied with the quarterly results, leading to the GDR price decline.
Indian Market Outlook
Financial experts anticipate this negative sentiment will affect the Indian stock market when it opens on Monday, January 19. Ojha suggested that Reliance Industries, a heavyweight on the Sensex, might open flat to negative.
He explained that Reliance shares typically open lower after quarterly result announcements. However, they often bounce back strongly afterward. Ojha expects a similar pattern this time.
Investment Strategy Recommendations
Ojha provided specific guidance for investors holding Reliance shares in their portfolios. Since the stock has already dipped in recent sessions, he believes further downside may be limited.
He advised existing shareholders to consider adding more shares if the price approaches the crucial ₹1400 support level. Fresh investors can also enter the market with targets of ₹1508 and ₹1540.
However, Ojha emphasized the importance of risk management. He recommended maintaining a strict stop loss at ₹1380 per share to protect investments.
Q3 FY26 Financial Highlights
Reliance Industries reported several key financial metrics for the December quarter:
- Consolidated net profit rose 2% year-on-year to ₹22,167 crore
- Net profit attributable to owners increased 0.6% to ₹18,645 crore
- Consolidated revenue from operations grew 10.51% to ₹2,69,496 crore
- Consolidated EBITDA increased 6.1% to ₹50,932 crore
- EBITDA margin contracted by 70 basis points to 17.3%
Segment-Wise Performance
The company's various business segments showed mixed results:
- Jio: Revenue grew 12.7% to ₹37,262 crore while net profit climbed 11.2% to ₹7,629 crore
- Reliance Retail: Revenue increased 9.2% to ₹86,951 crore with profit rising 2.7% to ₹3,551 crore
- Oil-to-Chemicals (O2C): Revenue rose 8.4% to ₹1,62,095 crore while exports slipped 1.2% to ₹66,830 crore
The market will closely watch how Indian investors respond to these results when trading resumes on Monday. All eyes remain on Reliance Industries as it navigates post-earnings market dynamics.
