Reliance Industries Q1 Results Review - Weak Performance: Dolat Capital

Dolat Capital Report

Reliance Industries Ltd. Q1 FY25 headline numbers were below estimated Ebitda/profit after tax of -4%/-10%, given lower operating profit across segments except telecom. Profit after tax came at Rs 151 billion (-6% YoY, -20% QoQ).

Key highlights are:

1. Capex increased 24% QoQ;

2. No updates on "New Energy" biz;

3. Retail Ebitda growth of 11% YoY is the lowest in last nine quarters; and

4. Jio average revenue per user was flat at Rs 181.7 QoQ.

We tweak FY25E/FY26E earnings by +1%/+2% and increase average revenue per user assumption for Jio by 1% each.

Maintain ‘Accumulate’ rating with an upward revision in SoTP-based target price of Rs 3,370 (versus Rs 3,260 earlier).

Potential listing of consumer biz and value discovery in "New Energy" Biz could be a positive trigger for the stock.

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