Reliance profit up 41% to Rs 25,548 crore; retail falls

RELIANCE Reliance Industries Limited reported Q2 FY27 consolidated net profit of Rs 25,548 crore, up 40.6 percent, on record revenue of Rs 3.62 lakh crore, and the stock rose about 8 percent after it. Q2 FY27 numbers (consolidated): Revenue: Rs 3,62,268 crore, up 27.8% YoY EBITDA: Rs 62,409 crore, up 23.9%; margin 17.2%, against 17.8% Oil to chemicals: EBITDA Rs 25,203 crore, up 67.9% Jio Platforms: EBITDA Rs 21,900 crore, up 16.6%; margin 54.1% Retail: EBITDA Rs 6,100 crore, down 11.1% My 2 October gate had three parts: Jio momentum, retail stabilisation and crude above $75. Jio passed; retail failed, on quick-commerce spending and input costs. Refining margins carried the quarter, a cyclical base rather than a retail recovery. I have not checked the 6 November crude price. Reliance Industries [RELIANCE][***** closed at Rs 1,295.96 on 6 November on StockGro (previous close Rs 1,306.55), up 8.6 percent in a month. P/E 21.4; sector P/E near 12. My view: hold, not a fresh entry. Jio and refining carry the quarter, and retail profit is shrinking, so the group leans more on refining margins than my 2 October post assumed. At Rs 1,296 the stock is 24 percent above my Rs 1,050 support and above my Rs 1,250 resistance, which it has now crossed. Holders stay; exit on a close below Rs 1,250. Fresh money waits for a pullback to Rs 1,050, my 2 October support, or for retail EBITDA to stop falling. What would change my mind: crude below $75 a barrel, or a Q3 retail EBITDA decline deeper than 11.1 percent. Next trigger: Q3 FY27 results, date not yet sourced. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.