Shares of Reliance Industries Ltd. tumbled over 3% on Monday after its consolidated net profit fell 18% sequentially in the first quarter of the current financial year.
The oil-to-telecom conglomerate posted a profit of Rs 17,445 crore in the April–June period, in line with a consensus estimate of Rs 17,654.9 crore by analysts tracked by Bloomberg.
The consolidated Ebitda for the quarter improved year-on-year on account of strong contributions from consumers and upstream businesses, offsetting the weak oil-to-chemicals operating environment, Chairperson Mukesh Ambani has said.
Analysts have trimmed the earnings forecasts, citing the weak first-quarter performance. "The extent of the O2C decline and continued retail weakness was particularly disappointing," Citi said in a note. The brokerage has lowered RIL's fiscal 2025 and 2026 earnings-per-share forecast by 6% and 3% respectively.
On the NSE, RIL's stock fell as much as 2.97% during the day to Rs 3,017.9 apiece, the lowest since June 27. It was trading 2.74% lower at Rs 3,025.1 per share, compared to a 0.02% advance in the benchmark Nifty as of 10:07 a.m.
The share price has risen 21.6% in the last 12 months and 17.5% on a year-to-date basis. The relative strength index was at 44.
Twenty-seven out of the 35 analysts tracking the company have a 'buy' rating on the stock, five recommend a 'hold' and three suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 9%.
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