Reliance Industries , one of India's largest conglomerates, has announced plans to construct a massive 1 gigawatt (GW) data center in Andhra Pradesh. This strategic move marks Reliance's significant expansion into the realm of large-scale data infrastructure, positioning the company as a formidable player in the rapidly growing digital services sector.

Strategic Expansion

The planned data center, with its impressive 1 GW capacity, represents a bold step for Reliance Industries as it ventures further into the digital infrastructure space. This development aligns with the increasing demand for data storage and processing capabilities in India's burgeoning digital economy.

Following Tech Giants' Footsteps

Reliance's announcement comes in the wake of a similar move by tech giant Google in the region. This parallel development underscores the growing importance of Andhra Pradesh as a hub for data center investments, potentially driven by factors such as favorable policies, infrastructure, or strategic location.

Implications for the Digital Services Sector

By entering the data center market at this scale, Reliance Industries is positioning itself to compete directly with major tech companies in the digital services sector. This move could have far-reaching implications for the company's future growth trajectory and its role in India's digital transformation.

Recent Regulatory Development

In a separate development, Reliance Industries has received an order from the Commissioner (Appeals), Central Goods and Services Tax, Appeal Commissionerate – Ahmedabad, as disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The order, dated November 6, 2025, imposes a penalty of Rs. 57.07 crore on Reliance Industries. This penalty is related to the classification adopted for import of services for hiring vessels on time charter basis during the period from July 1, 2017, to January 24, 2018.

Reliance Industries has stated its intention to appeal against this order. The company clarifies that while there is a financial impact to the extent of the penalty levied, there is no impact on its operations or other activities due to this order.

As Reliance Industries continues its expansion into new technological frontiers with projects like the 1 GW data center, it also navigates regulatory challenges, demonstrating the complex landscape in which large conglomerates operate in India's evolving economy.

Reliance Industries Limited (RIL), one of India's largest conglomerates, has recently faced a significant tax penalty while also experiencing a notable shift in its investor composition. These developments highlight the complex regulatory and financial landscape the company is navigating.

GST Penalty

Reliance Industries has been hit with a Rs. 57.07 crore penalty from GST authorities. The penalty stems from the company paying lower taxes due to classification issues on vessel hiring services during the period from July 2017 to January 2018. In response, the company has stated its intention to appeal the order. The financial impact is expected to be limited to the penalty amount, with no effect on the company's operations.

Changing Investor Landscape

Recent data reveals significant changes in the ownership structure of Reliance Industries:

Retail Investor Confidence

The increase in retail investor stake is particularly noteworthy. The number of small investors has grown to over 42 lakh, collectively holding approximately 94 crore shares. This uptick in retail participation may suggest growing confidence among individual investors in Reliance Industries' long-term prospects.

Institutional Investor Movements

Mutual funds have also shown increased interest in RIL, raising their exposure from 9.32% to 9.66%. This could indicate a positive outlook from professional fund managers regarding the company's future performance.

Conversely, foreign institutional investors (FIIs) have reduced their holdings from 19.21% to 18.65%. The number of foreign investors decreased from 2,280 to 2,146 during this period. This reduction might be attributed to various factors, including global economic conditions or portfolio rebalancing strategies.

Stock Performance and Valuation

Despite these ownership changes and regulatory challenges, Reliance Industries' stock has shown resilience:

• The stock declined about 9% during the July-September quarter.
• It continues to trade above key moving averages.
• The Relative Strength Index (RSI) stands at 67.80.
• Over the past year, the stock has gained more than 21%.
• The current price-to-earnings (P/E) ratio is 24.76.
• The 52-week price range spans from Rs 1,114.00 to Rs 1,551.00.

Analysts maintain a 'Strong Buy' consensus rating on the stock, with an average price target suggesting a 12% upside potential.

Recent Corporate Activities

According to the latest LODR (Listing Obligations and Disclosure Requirements) data, Reliance Industries continues to engage with institutional investors:

• Company executives participated in the UBS Annual India Summit in Mumbai.
• An upcoming meeting is scheduled at the CLSA India Forum in Mumbai.

The company has emphasized that no unpublished price-sensitive information was or will be shared during these one-on-one meetings, maintaining transparency with all stakeholders.

As Reliance Industries navigates through changing investor compositions, regulatory challenges, and market conditions, the company's performance and strategic decisions will continue to be closely watched by market participants across all categories.