RELIANCE INDUSTRIES LIMITED – Comprehensive Stock Analysis Report | Scrolls

by Karnivesh | 2026

RELIANCE INDUSTRIES LIMITED - Comprehensive Stock Analysis Report - Scrolls.pdf

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Reliance Industries is not a single business it is an ecosystem built on scale. From refining crude oil to selling groceries, from powering smartphones to streaming cricket, the company sits at the intersection of India’s energy security and consumption growth. This diversity is both its greatest strength and its most complex challenge.

At its core, Reliance still runs on energy. The Oil-to-Chemicals (O2C) business remains the largest contributor to revenue and cash flows, anchored by the Jamnagar refinery complex the largest of its kind globally. This segment provides the financial backbone of the group, funding dividends and the massive investments required elsewhere. However, FY25 showed the limits of this engine. Global refining margins softened, commodity cycles turned less favorable, and profitability came under pressure. Volumes held up, efficiency remained best-in-class, but margins reminded investors that this business is cyclical by nature.

While the old engine cooled, newer ones continued to accelerate.

Reliance Jio has fundamentally reshaped India’s digital landscape. With nearly 500 million subscribers, it has achieved extraordinary scale in a short span of time. The challenge now is no longer growth in users, but growth in value per user. ARPU improvement and successful 5G monetization will decide whether Jio becomes a high-margin digital cash machine or remains a scale-heavy, capital-intensive utility. The opportunity is massive but execution matters.

Retail tells a similar story of scale-first, profitability-later. Reliance Retail has quietly become India’s largest organized retailer, expanding across grocery, electronics, fashion, and digital commerce. Revenue growth remains strong, driven by rising consumption and formalization of retail. Yet margins are thin, competition is intense, and operating leverage is still unfolding. The long-term thesis is intact, but the journey from market leadership to consistent profitability is still in progress.

What ties these businesses together is capital.

Reliance is investing over ₹75,000 crore annually into renewable energy, green hydrogen, advanced materials, digital infrastructure, and retail expansion. This is a deliberate bet on the next decade, not the next quarter. The renewable push, in particular, represents a strategic pivot: moving from being India’s largest hydrocarbon company to becoming a meaningful player in clean energy. The vision is bold, but returns remain unproven. For now, these investments dilute near-term returns while holding out the promise of long-term relevance.

Financially, the picture is steady but not spectacular. Revenues continue to grow, profits inch upward, but margins have compressed slightly due to weaker refining economics. The balance sheet remains strong, leverage is controlled, and cash flows are sufficient to fund both capex and dividends. Valuations reflect this balance neither cheap nor euphoric pricing in leadership, scale, and future optionality.

Ultimately, Reliance is in a transition phase.

The legacy businesses generate cash but face cyclical and structural headwinds. The new businesses offer growth but demand patience, capital, and flawless execution. The company’s success over the next few years will hinge on three things: recovery in O2C margins, monetization of Jio’s massive user base, and the ability of retail and green energy investments to deliver returns above their cost of capital.

Reliance remains a proxy for India’s economic ambition large, complex, resilient, and always in motion. For those looking at the long term, the story is not about one quarter’s earnings, but about whether scale can once again be converted into sustainable, profitable growth in a changing world.