Reliance Industries has received a maintained BUY rating from Motilal Oswal, despite posting a softer-than-expected third quarter performance. The brokerage has set a revised target price of ₹1,750 for the conglomerate's shares.

Third Quarter Performance Overview

The company's consolidated EBITDA remained flat on a quarter-on-quarter basis during the third quarter, though it showed positive momentum year-on-year. The performance fell short of analyst expectations, primarily due to challenges in its retail segment.

Reliance Retail Challenges Impact Results

Reliance Retail (RRVL) emerged as the primary factor behind the weaker quarterly performance. The retail arm faced multiple headwinds that affected both revenue growth and profitability metrics during the quarter.

Revenue Growth Factors

RRVL's revenue growth was constrained to 9% year-on-year, significantly impacted by:

• Festive season shift to the second quarter
• Effects of the FMCG demerger
• Market timing challenges

Profitability Pressures

The retail segment's operating EBITDA growth was modest at 2% year-on-year, falling short of the estimated 4% year-on-year growth. Several operational factors contributed to this underperformance:

Analyst Outlook and Recommendation

Despite the challenging third quarter results, Motilal Oswal maintains confidence in Reliance Industries' long-term prospects. The brokerage has reiterated its BUY rating while making a modest adjustment to the target price.

The revised target price of ₹1,750 represents a slight reduction from the earlier target of ₹1,790, reflecting the near-term challenges while maintaining an overall positive outlook on the company's fundamentals and growth trajectory.

Reliance Industries shares have entered severely oversold territory, marking the most challenging period for India's largest company in five years. The oil-to-telecom conglomerate controlled by Mukesh Ambani is facing significant headwinds across multiple business segments.

Technical Indicators Signal Oversold Conditions

The company's technical position has deteriorated significantly, with key momentum indicators flashing warning signals.

The 14-day relative strength index fell to 24.4 on Tuesday, pushing the stock into territory that many traders consider oversold. This technical indicator suggests the stock may have declined too rapidly relative to its recent trading history.

Business Challenges Impact Performance

Reliance Industries is grappling with multiple operational challenges that have contributed to investor concerns. The company faces a notable slowdown in its retail business operations, which has been a key growth driver in recent years.

Additionally, growing unease over potential US action related to the company's purchases of Russian crude oil has created uncertainty among investors. These geopolitical concerns add another layer of complexity to the company's operational environment.

Historical Context and Market Impact

The current 11% decline represents the worst start to a year for Reliance Industries since 2011, highlighting the severity of the current challenges. This performance has resulted in substantial market value erosion, with approximately $29 billion wiped from the company's market capitalization so far in 2026.

The selloff reflects broader investor sentiment regarding the company's near-term prospects across its diversified business portfolio, spanning oil refining, petrochemicals, telecommunications, and retail operations.