Reliance Industries delivered a strong top-line performance in Q3 with consolidated revenue from operations rising 11% year-on-year to ₹2.69 lakh crore, though net profit growth remained muted at 0.56% YoY to ₹18,645 crore. The company posted EBITDA of ₹50,932 crore, marking 6% year-on-year growth, primarily driven by robust performance in the Jio telecom business and Oil-to-Chemicals (O2C) segment. Market expert Sushil Choksey from Indus Equity Advisors noted that the results were broadly in line with Street expectations.

Financial Performance Overview

The diversified conglomerate showed steady business momentum with sequential improvements, as net profit rose 3% quarter-on-quarter from ₹18,165 crore and revenues increased 4% sequentially. However, higher operational costs partially impacted profitability during the quarter.

O2C Segment Powers Performance

The O2C business demonstrated exceptional strength with EBITDA surging to ₹16,507 crore, significantly higher than ₹15,008 crore in the previous quarter and ₹14,402 crore year-on-year. Choksey highlighted the division's strength, stating that "oil-to-chemicals division throughput was exceeding 20 million and GRM was on a stable note. The cash cow continues to energise the entire expansion of Reliance."

Digital Services Maintains Growth Trajectory

Jio delivered steady performance with wireless revenue growing 8% year-on-year, supported by robust subscriber additions. ARPU improved across multiple timeframes, rising 5.1% year-on-year and 1.1% quarter-on-quarter to ₹213.70 per user. Choksey noted that "Jio was stable and positive" and identified tariff hikes as the key lever for future earnings growth, especially with Bharti Airtel's ARPU remaining about 20% higher than Jio's.

Retail Faces Temporary Headwinds

The retail segment experienced some pressure during the quarter, which Choksey attributed to temporary factors. "Retail was a little disappointing because GST changes had an impact for one month and the festive season had shifted to Q2," he explained. However, he believes the weakness is transient, noting that "expansion mode is on track" with the number of stores nearing 20,000 and per square foot sales remaining on track.

Expert Analysis and Market Outlook

Choksey provided a comprehensive assessment of the company's consolidated performance, noting that "yearly EBITDA without other income at ₹1.85 lakh crore and debt nearing around ₹1 lakh crore seem to be on track." He suggested a sum-of-parts valuation target of ₹1,700 to ₹1,850, supported by favorable currency dynamics and high replacement costs for similar global complexes.

Regarding the new energy vertical, Choksey indicated that "management commentary suggests that the new energy vertical is beginning to take shape and could see visible traction over the next six months."

Reliance Industries Limited executed a significant block trade on the National Stock Exchange (NSE), marking substantial institutional trading activity in the oil-to-telecom conglomerate's shares.

Transaction Details

The block trade involved approximately 162,312 shares of Reliance Industries, executed at a price of ₹1,423.90 per share. This large-volume transaction generated a total value of ₹23.11 crores.

Understanding Block Trades

Block trades represent large-volume transactions typically executed by institutional investors, mutual funds, or other significant market participants. These trades are usually conducted to minimize market impact that could occur if such large volumes were traded through regular market mechanisms.

Market Significance

The execution of this block trade demonstrates continued institutional interest in Reliance Industries shares. Such transactions often reflect portfolio rebalancing activities, strategic investments, or divestments by large financial institutions without causing significant price volatility in the regular trading sessions.