Reliance Industries Ltd is positioned for a mixed performance in the December quarter (Q3FY26), with its oil-to-chemicals (O2C) business expected to be the primary growth driver while the oil and gas segment faces ongoing challenges, according to estimates from brokerage firm Jefferies.

O2C Business Expected to Lead Performance

The Mukesh Ambani-led conglomerate's oil-to-chemicals division is anticipated to deliver strong results during Q3FY26, primarily supported by a sharp improvement in refining margins. This improvement in margins is expected to significantly boost the overall performance of the O2C segment, which has been a key revenue contributor for the company.

Oil & Gas Segment Under Continued Pressure

In contrast to the positive outlook for the O2C business, Reliance Industries' oil and gas segment is expected to remain under pressure during the December quarter. The segment continues to face headwinds that are likely to impact its contribution to the company's overall financial performance in Q3FY26.

Quarterly Performance Expectations

The contrasting performance expectations between the two major business segments highlight the diverse nature of Reliance Industries' operations. While the O2C business is set to benefit from favorable market conditions, particularly improved refining margins, the oil and gas division's challenges underscore the varied market dynamics affecting different parts of the business.

The December quarter results will provide insights into how effectively the company's diversified portfolio performs across different market conditions, with the O2C segment's strength potentially offsetting challenges in the oil and gas division.

Source: https://www.cnbctv18.com/market/reliance-industries-share-price-q3-preview-o2c-growth-oil-gas-ws-l-19820165.htm

Reliance Industries shares experienced significant selling pressure on January 13, declining 2.3% to reach an intraday low of ₹1,448.00 during afternoon trading. This latest decline extends the oil-to-telecom conglomerate's challenging performance in 2025, with the stock already down over 8% year-to-date.

Q3FY26 Results Scheduled for January 16

The market weakness comes ahead of Reliance Industries' December quarter (Q3FY26) results announcement scheduled for Friday, January 16. Investors are closely watching the upcoming earnings report as the company navigates through various business segments including refining, petrochemicals, retail, and telecommunications.

Technical Analysis Points to Consolidation Phase

According to technical analysts, the current decline represents a healthy consolidation rather than a trend reversal. Ajit Mishra, SVP at Religare Broking, notes that Reliance Industries is undergoing a corrective phase after posting a record high near ₹1,610.00.

The stock has slipped below its short-term 20-day and medium-term 100-day exponential moving averages, signaling a loss of near-term momentum. However, moderate volumes during the pullback suggest an absence of panic selling.

Analyst Recommendations and Price Targets

Despite the recent weakness, brokerage firms maintain positive outlooks on Reliance Industries. Goldman Sachs recently raised its 12-month price target to ₹1,835.00 per share while reiterating its buy rating. The brokerage expects near-term retail moderation to be offset by improving refining fundamentals and steady telecom momentum.

Q3FY26 Performance Expectations

Nomura estimates Reliance Industries' consolidated EBITDA at ₹47,600.00 crore for Q3FY26, reflecting a 4% quarter-on-quarter increase. The analysis suggests mixed performance across business segments:

• Refining Segment: Expected to deliver strong performance
• Petrochemicals: Likely to face weaker margins
• Retail Business: Anticipated muted performance
• Jio Telecom: Steady operating performance expected

Investment Outlook

Technical analysts suggest that investors with medium-to-long-term horizons may consider accumulating shares near the support zone of ₹1,440.00-1,450.00. Aakash Shah from Choice Equity Broking emphasizes that as long as Reliance holds above the 200-day EMA support, the stock may stabilize and attempt a rebound. A sustained recovery above ₹1,520.00 could revive bullish momentum and open the path toward the ₹1,580.00-1,600.00 resistance band.