Reliance Industries stock slips 3%, price hits 15-month low

Reliance Industries share value has dropped 3%, which brought their stocks to a record low of ₹1,161.4, a value not seen for the past 15 month. Reliance shares have been continuously losing value and this is being largely attributed to the massive sell-off in the stock markets.

Market value of Reliance Industries dropped by 10 percent after February 4, ranking them lowest on the stock index ever since November 13, 2023. For a duration of six months, during the bear market, RIL stock value depreciated by 22 percent, massively outperforming the industry’s average loss of 11.5 percent.

A division within Mukesh Ambani conglomerate Reliance Industries is due for stiff penalties for failing to establish a battery cell plant, as per a report from Bloomberg.

As reported by Bloomberg, the company had accepted a tender of building battery cells for the Indian government funded plan to increase local business and are now planning to fine them for missing the deadline. Reliance New Energy could potentially see fines of up to ₹125 crores for the contractual overreach.

What’s next for investors concerning Reliance Industries stock?

Alongside, Reliance Industries Limited has lagged behind the broader benchmark equity index for the past several years and has reported negative returns for the calendar year 2024. For the first time in the last decade, Reliance shares have provided negative returns in a single calendar year.

Motilal Oswal and Financial Services analysts (MOFSL) argue the reason behind RIL underperformance recently stems from earnings slowdown due to growth deceleration at Reliance Retail as well as Refineries and Petrochemicals underperforming.

The brokerage was of the opinion that the stock offers good potential, after a steep fall in the stock correction. In their January 2025 report, the brokerage firm said that these gains are very attractive because RIL now trades at MOFSL bear case valuation.

What were Reliance Industries’ Q3 Results and Earnings Call?

During the December quarter, Reliance Industries Limited, led by Mukesh Ambani, witnessed a profit surge of 7.4 percent, totaling around Rs 18,540 crore, which is roughly $2.25 billion. The figure enabled the company to maintain profitability due to substantial contributions from the energy and retail as well as the digital services segments. There was also an increase in employment which accompanied a rise in operational revenue from Rs 2.27 lakh crore in the October-December 2023 quarter, to Rs 2.43 lakh crore. Information collected by LSEG shows the net profit for Rs 18,038 crore was the consensus amongst analysts. 

Included in the group’s revenue is a figure amounting to Rs 2.67 lakh crore, which represents a year on year increase of 7.7 percent. At the same time, EBITDA for Reliance saw growth of 7.8 percent and EBITDA for the quarter stands at Rs 48,003 crore.