Reliance Industries (RIL) fell 2.7% to Rs 1,436.85 on the BSE on Monday, despite the company posting its highest-ever quarterly profit of Rs 30,783 crore for Q1FY26. The strong earnings were boosted by a one-time gain from the Rs 8,924 crore sale of its stake in Asian Paints and lower interest and tax outgo. However, multiple brokerages flagged underwhelming operational performance across key segments Retail and Oil-to-Chemicals (O2C),which weighed on investor sentiment, ET reported.Reliance Industries shares declined by 3.24% on Monday, closing at Rs 1,428.20, down Rs 47.80, despite the company reporting its highest-ever quarterly profit.Jefferies noted that consolidated EBITDA was 3% below its estimate, with the O2C and Retail segments falling short by 5% and 4% respectively. It maintained a Buy rating with a price target of Rs 1,726 but highlighted that Retail growth was muted at just 8% year-on-year, impacted by slower electronics sales due to early monsoon and slower expansion.Emkay also reported a miss in EBITDA and adjusted profit by 5% and 7%, respectively. It blamed a 6% and 5% miss in O2C and Retail segment EBITDA for the underperformance.Motilal Oswal pointed out that Reliance Retail’s operational EBITDA missed its estimate by 7%, as revenue growth came in at 11% against an expected 16%. JPMorgan noted the deceleration in retail growth and while retaining an Overweight rating, raised its target price to Rs 1,695, ET reported.The O2C business too disappointed, with consolidated EBITDA down 4% quarter-on-quarter, missing estimates by 8%, according to Motilal Oswal. Turnaround activities and a planned shutdown impacted output, said Nuvama, though analysts remain hopeful as global refining margins improve.Amid the mixed numbers, Reliance Jio emerged as a bright spot. EBITDA rose 5% quarter-on-quarter, beating estimates by 2%, supported by cost control and subscriber additions. ARPU rose to Rs 208.8, and the telecom arm added 9.9 million users.Analysts including praised Jio’s performance, contrasting it with retail sluggishness and modest O2C recovery. Despite the challenges, RIL management remains optimistic, reaffirming its goal to double EBITDA by 2029, with Retail and Jio expected to double earnings in 3–4 years.Focus also remains on RIL’s new energy push, expected to become a multidecade growth engine. Brokerages expect a 10GW module-to-polysilicon facility to boost earnings by FY26. Prabhudas Lilladher upgraded the stock to Accumulate, assigning Rs 111 per share to the energy vertical.Most brokerages maintained bullish ratings with targets ranging from Rs 1,500 (Macquarie) to Rs 1,767 (Nuvama), but some warned of short-term stock moderation.
