Q2 Results Live Updates: RIL Shares Decline Ahead Of Earnings As Analysts Expect Weak Quarter

Reliance Industries is expected to report a year-on-year decline in its September quarter earnings, as global fuel supply remains high, according to Morgan Stanley.

The leading brokerage firm has also trimmed the company's earnings per share estimates of the current and the next fiscal by 12% and 7%, respectively. However, it has maintained 'overweight' rating on the stock.

Sequentially, Morgan Stanley expects earnings and Ebitda to grow 3%.

"RIL is rationalising its retail floor space and segment Ebitda should be flattish YoY, chemical margins are sluggish," Morgan Stanley said. "Telecom remains the bright spot as tariff hikes are reflected in earnings and Ebitda grows despite subscriber churn."

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Reliance Industries' net profit declined in the quarter ended June and the oil-to-telecom conglomerate's margin contracted by 120 basis points.

Net profit of the Mukesh Ambani-led conglomerate dropped 17.9% sequentially to Rs 17,445 crore for the April-June period, compared with the Bloomberg estimate of Rs 17,654.9 crore.

The company's net debt fell 11.27% over a year ago to Rs 1,12,341 crore. Net debt-to-Ebitda was 0.66 times higher than 0.76 a year ago. In the previous quarter, net debt was Rs 1,16,281 crore and net debt-to-Ebitda stood at 0.62 times.

Cash and cash equivalents rose to Rs 1,92,596 crore from Rs 1,92,064 crore in the year-ago period. In the previous quarter, the metric was Rs 2,08,341 crore.

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Sterling and Wilson Renewable Energy Ltd. reported a net profit in the second quarter of fiscal 2025. The company posted a net profit of Rs 8.5 crore in the quarter that ended September against a loss of Rs 54.5 crore in the same period last year.

Revenue rose 36% year-on-year to Rs 1,030 crore in the July-September quarter.

Operating income, or earnings before interest, taxes, depreciation, and amortisation, rose to Rs 17.8 crore from Rs 0.8 crore in the same period last year. The Ebitda margin expanded to 1.7% from 0.1% in the previous year.

Alok Industries Ltd. reported a net loss of Rs 262 crore in the second quarter of the current financial year against a loss of Rs 175 crore in the same period last year.

Revenue fell 35.4% year-on-year to Rs 886 crore in the July-September quarter.

The company reported a loss of Rs 45 crore in operating income, or earnings before interest, taxes, depreciation, and amortisation against a profit of Rs 36 crore.

India's benchmark equity indices extended gains through midday on Monday, awaiting second-quarter results from Reliance Industries Ltd. and HCL Technologies Ltd. later in the day.

At 12:14 p.m., the Nifty traded 0.74%, or 185.30 points, higher at 25,149.55, and the Sensex gained 0.81%, or 657.81 points, to trade at 82,039.17.

Shares of HCLTech rose as much as 0.8% to hit a record high of Rs 1,854 apiece, while those of Reliance Industries traded little change after erasing morning gains anticipating second quarter results.

Nifty is trading in a small range with its support at 24,900 and resistance at 25,150, according to Soni Patnaik, equity derivatives analyst at JM Financial.

"A breach on either side can help determine further trend," she said while noting that true short covering will happen only above 25,300 where there are a lot of call writers.

She said that it is also imperative to understand that FIIs have reduced long positions and are increasing net shorts; therefore, the possibility of any rise towards resistance may see a selloff until the 25,300 level is not getting crossed.

Shares of Infosys Ltd., HDFC Bank Ltd., ICICI Bank Ltd., Larsen & Toubro Ltd., and Bharti Airtel Ltd. contributed the most to the gains in Nifty. While those of Nestle India Ltd., Maruti Suzuki Ltd., Bajaj Finance Ltd., Axis Bank Ltd., and Tata Steel Ltd. weighed on the index.

Most sectoral indices were trading higher led by Nifty Realty and Nifty Bank.

Market breadth was skewed in favour of the buyers. As many as 2,081 stocks rose, 1,811 fell, and 164 remained unchanged on the BSE.

Broader indices underperformed, with BSE Midcap trading 0.1% lower and BSE Smallcap trading flat during midday trade on Monday.

Five out of the 20 sectoral indices on the BSE declined while 15 rose. BSE Realty rose the most.

Analysts expect Jio to post a strong and steady quarter, on the back of the tariff hikes announced by the company.

Nuvama expects Jio's Ebitda to rise 12% and 6% on an annual and sequential basis, respectively. Growth will be driven by higher average revenue per user, which the brokerage expects will grow 5%. The growth in ARPU is set to offset the 1% quarter-on-quarter moderation in subscriber base, Nuvama forecasts.

Prabhudas Lilladher has a similar view, expecting a 7% sequential uptick in ARPU and a muted rise in subscriber growth at 0.6%.

The retail segment's profitability should be resilient in the second quarter, according to Prabhudas Lilladher.

Nuvama expects the retail business' Ebitda to grow 7% year-on-year due to the 10% rise in retail area over the same period. Motilal Oswal expects the retail business to grow 10% year-on-year to Rs 5,400 crore.

The company's oil to chemicals segment could see a weak quarter due to the negative trajectory of benchmark Singapore gross refining margins, which fell 62% year-on-year in the quarter ended Sept. 30, 2024. Prabhudas Lilladher Pvt. projects the company's refining throughput at 17 million tonnes per annum.

Both Motilal Oswal and Nuvama expect RIL's O2C Ebitda to fall 26-27% year-on-year to around Rs 14,100 crore.

As per Nuvama, the company's oil and gas Ebitda may rise 4% year-on-year, due to the expected 3% annual production uptick.

It is key to note the O2C and upstream oil and gas segments contributed 53% to Reliance Industries' consolidated Ebitda in fiscal 2024.

According to Motilal Oswal, some of the key monitorables will be:

• Further clarity on the Rs 75,000 crore announcements in the new energy business.

• Growth in retail store additions.

• Any pricing action in the Indian telecom industry.

Shares of Reliance Industries Ltd. swung between gains and losses as India's top company by market capitalisation gears up to report its second-quarter earnings.

The Ambani-led conglomerate is likely to report a net profit of Rs 18,813.9 crore and a revenue of Rs 2.35 lakh crore for the quarter ended Sept. 30, 2024, according to Bloomberg estimates.

The oil-to-telecom conglomerate had on Oct. 7 informed the exchanges that its board is scheduled to meet on Oct. 14 to consider and approve the company's financial results.

RIL's stock rose as much as 0.58% during the day to Rs 2,760.1 apiece on the NSE. It was trading 0.14% higher at Rs 2,748 apiece, compared to a 0.72% advance in the benchmark Nifty 50 as of 12:21 p.m.

It has risen 17.2% during the last 12 months and has risen by 6.3% on a year-to-date basis. The relative strength index was at 32.

Twenty-six out of the 36 analysts tracking the company have a 'buy' rating on the stock, seven suggest a 'hold' and three have a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential downside of 19.7%.

Reliance Industries Ltd.'s consolidated Ebitda is expected to fall sequentially in the second quarter of financial year 2025, as per brokerages.

The segment that is estimated to drag down the company's financials this quarter is its standalone business that engages in the oil to chemicals, and oil and gas business. The company's other major segments—retail and Jio are projected to see healthy growth.

Reliance Industries' consolidated revenues are expected to be muted, with a 2.2% quarter-on-quarter growth, according to consensus estimates of analysts tracked by Bloomberg as of Oct. 11.

The company's Ebitda is expected to fall 5.4% sequentially. While, margins are estimated to contract to 17.1% in the second quarter, compared to 18.4% last quarter.

Profits, on the other hand, are expected to see an over 20% uptick, as per Bloomberg.

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Reliance Industries Ltd., HCL Technologies Ltd. and Angel One Ltd. are among the top names that will announce their second quarter results on Monday.

Analyst estimates show that Reliance Industries is likely to report a net profit of Rs 18,813.9 crore and a revenue of Rs 2.35 lakh crore for the quarter ended Sept. 30, 2024.

HCL Technologies Ltd. is likely to clock Rs 4,061.6 crore in profit and Rs 28,637.2 crore in revenue, according to Bloomberg estimates.

Online brokerage firm Angel One Ltd. is estimated to report a profit of Rs 406.6 crore and a revenue of Rs 1,208.5 crore.

Reliance Industries Ltd. is among some 14 companies, including HCL Technologies Ltd. and Gopal Snacks Ltd., scheduled to report their earnings for the second quarter on Monday.

The oil-to-telecom conglomerate had on Oct. 7 informed the exchanges that its board is scheduled to meet on Oct. 14 to consider and approve the company's financial results.

In addition to the companies mentioned above, the other firms that will be releasing their earnings on Monday include Angel One Ltd., Ceenik Exports India Ltd., Dr Lalchandani Labs Ltd., International Travel House Ltd., and J Taparia Projects Ltd.

Companies like Oriental Hotels Ltd., Premier Polyfilm Ltd., Rajoo Engineers Ltd., Rita Finance And Leasing Ltd. and Sterling and Wilson Renewable Energy Ltd., will also report their earnings on Monday.