RIL Q1 Results Review — New Energy To Be The Next Phase of Growth Driver, Says Systematix Maintaining 'Buy'

In 2008, RIL had purchased about 4.9% stake (for ~Rs 5 billion) in Asian Paints, which they have fully exited and booked exceptional income of ~Rs 89 billion in Q1 FY26. CapEx declined 17% sequentially to Rs 299 billion..NDTV Profit’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer NDTV Profit’s subscribers an opportunity to expand their understanding of companies, sectors and the economy. .Systematix Report.Reliance Industries Ltd.s Q1 FY26 revenue/adjusted Ebitda underwhelm our estimates by 1.1%/-3.5%, while net profit outperformed due to higher other income (even after adjusting to Asian Paints stake sale). Adj Ebitda came in at Rs 429 billion, up 10.7% YoY, led by strong growth reported from Digital services/Retail/O2C which rose 23%/13%/11% YoY. PAT post adjusting for the one-off gains (~Rs 89 billion) came in at Rs 203 billion (up 34.1% YoY/4.6% QoQ) as other income increased 56% YoY (+26% QoQ). Jio’s total customer base improved 1.7% YoY to 498 million (+9.9 million QoQ), 5G connection saw an addition of 20 million subscriber (210 million) while new homes connects increased by 2.6 million. Average revenue per user came in at Rs 208.8, up 14.9% YoY/1.3% QoQ. Retail segment benefited with higher store count (net addition of 388 stores QOQ to 19,592 stores) and 13.3% increase in customer base to 358 million. Though, oil-to-chemical Ebitda was below estimates owing to expected lower polyester margin and lower volume due to planned shutdown. In upstream, topline was negatively impacted by lower CBM gas price and KG-D6 volume partly offset by 21.7% YoY rise in CBM production volume. KG-D6 gas production was down 7% YoY/-1% QoQ to 26.6 mmscmd and condensate down 16% YoY/-2% QoQ to 19,300 bpd, while the realisation came in at $10/mmbtu (up 7.6% YoY/-1.2% QoQ). In 2008, RIL had purchased about 4.9% stake (for ~Rs 5 billion) in Asian Paints, which they have fully exited and booked exceptional income of ~Rs 89 billion in Q1 FY26. CapEx declined 17% sequentially to Rs 299 billion. .We are marginally raising our Ebitda estimates by 2%/3% to factor in strong digital services profits while new Energy would start contributing from H2 FY26. The company has guided to double its Ebitda by 2030. We forecast revenue/Ebitda/PAT CAGR of 7%/11.2%/10.4% over FY25-27E. We raise our target price to Rs 1,680 (previously Rs 1,541) on the back of higher multiple to Jio due to strong earnings growth. Maintain Buy..Click on the attachment to read the full report:.Reliance Jio Signs Tower Sharing Deal With Indus.DISCLAIMERThis report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

RIL Q1 Results Review — New Energy To Be The Next Phase of Growth Driver, Says Systematix Maintaining 'Buy'

Systematix raises its target price to Rs 1,680 on the back of higher multiple to Reliance Jio due to strong earnings growth and maintains Buy.

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