A slew of brokerages have downgraded Reliance Industries Ltd. after the company registered muted numbers for the third quarter of the financial year ending March 2026. The performance missed market expectations, bogged down by a relatively weak quarter for the retail segment.
Reacting to RIL's Q3 earnings, the likes of Morgan Stanley, Jefferies and Citi have cut the target price for the counter, citing weakness in the retail segment. At the same time, the brokerages noted Reliance Jio's strong performance in the quarter.
Here's what some of the brokerages had to say on RIL's Q3 numbers.
Brokerages On Reliance Industries
Morgan Stanley on RIL
Maintain Overweight; Cut TP to Rs 1,803 from Rs 1,847.
Q3 results were in line but missed on earnings quality, especially in retail.
Weak retail performance is viewed as a clearing event and largely priced in.
Energy and AI-led catalysts outweigh near-term retail volatility.
Positives include new energy execution and refining performance.
Negatives were weaker retail topline growth and higher unallocated costs.
Jefferies on RIL
Maintain Buy; Cut TP to Rs 1,795 from Rs 1,830.
Consolidated EBITDA missed estimates by 5%, led by a retail miss and a spike in unallocated expenses.
Retail EBITDA grew just 2% YoY amid promotions and quick commerce pressure.
Jio performance was in line; IPO awaits government approval.
O2C performance was steady with a constructive refining outlook.
Retail recovery and tariff hikes at Jio remain key triggers.
Macquarie on RIL
Maintain Outperform; TP Rs 1,650.
Retail performance was lacklustre while Jio remained robust.
Higher losses in the ‘Others' segment weighed on results.
Sees downside risk to consensus assumptions of 15% group EPS growth.
Citi on RIL
Maintain Buy; Cut TP to Rs 1,815 from Rs 1,860.
Q3 earnings were below expectations as retail growth moderated.
Jio delivered steady performance with improving ARPU.
Near-term softness could cap upside, though recent correction limits downside.
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