Reliance Industries Gains Post Q4 FY25: What's Driving Surge?

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Reliance Industries Surges 6%, Powers Nifty50 Past 24,300 in Blockbuster Market Rally

By S Jha

Mumbai, April 28, 2025: Reliance Industries Limited (RIL), India’s largest conglomerate by market capitalization, lifted the Indian stock market higher on Monday. The stock of Reliance Industries was trading with gains of almost six per cent on Monday.

With sharp rise in the share price of Reliance Industries Limited, Nifty50 also claimed the pivotal 24300 level on Monday. Bank Nifty was also trading higher.

Reliance Industries Limited announced its Q4 FY25 results on April 25, 2025. The stock is now trading at a five-month high of ₹1,372 in the afternoon session on Monday.

The gains in the stock came amid strong performance across its retail and telecom segments, despite challenges in its oil-to-chemicals (O2C) business. With a market cap of approximately ₹17.59 lakh crore, RIL remains a bellwether for India’s equity markets.

Q4 FY25 Performance: A Snapshot

RIL reported a consolidated net profit of ₹19,407 crore for Q4 FY25 (January–March 2025), a 2.4% year-on-year (YoY) increase from ₹18,951 crore in Q4 FY24, surpassing Bloomberg’s consensus estimate of ₹18,471.4 crore.

Revenue from operations grew 10% YoY to ₹2.64 lakh crore, while EBITDA rose 3.6% to ₹48,737 crore, with an EBITDA margin of 16.9%. The company also declared a dividend of ₹5.5 per share, boosting investor confidence.

Key growth drivers included a rebound in Reliance Retail and robust telecom earnings from Jio, fueled by higher tariffs and subscriber growth.

Why the Stock is Gaining

Retail and Telecom Strength: Reliance Retail saw a 16% YoY revenue growth in Q4, recovering from a sluggish first half of FY25, driven by improved consumer spending and quick-commerce initiatives. Jio’s telecom segment benefited from tariff hikes and strong subscriber additions, particularly for Jio AirFiber.

@AlgoBoffin on X noted, Revenue: ₹2,64,573 Cr (+9.9% YoY) | Net Profit: ₹19,407 Cr (+2.4% YoY, above estimates)… Jio remained the main contributor to incremental group EBIT.”

New Energy Investments: RIL’s commissioning of a heterojunction technology (HJT) solar module manufacturing facility and progress toward battery storage production have excited investors. Morgan Stanley highlighted, “Major growth drivers into 2026 will include the ramp-up of the new energy segment,” with a target price of ₹1,606.
Brokerage Optimism: Post-results, brokerages raised target prices, reflecting confidence in RIL’s diversified portfolio. Nomura maintained a “Buy” rating with a ₹1,650 target, citing “scale-up of the new energy business, upcoming tariff hikes for Jio, and the potential IPO/listing of Jio.” CLSA echoed this, stating, “4Q PAT was a bit ahead of est. Management guided Reliance Retail to resume its strong growth trajectory from 1QFY26.”
Technical Breakout: From a technical perspective, the stock’s movement above the 200-day moving average (DMA) signaled bullish momentum.

@Stockstudy8 on X observed, “Technically Stock crossed 200 dmsa after [results],” indicating potential for further upside.

Challenges and Risks

Despite the gains, RIL faces headwinds in its O2C segment, where margins remain under pressure due to global energy market volatility.

@Fin_Ind_Service on X noted, “Consumer Businesses Drive Profit Growth Amid Energy Margin Pressures,” highlighting the O2C segment’s challenges. Additionally, high capital expenditure (capex) continues to limit free cash flow generation, as pointed out by @EquityInsightss : “Operating Cashflows have grown steadily, but high capex continues to restrict Free Cash Flow (FCF) generation.”

The stock’s 20% correction from its 52-week high of ₹1,608.95 (July 8, 2024) earlier this year also reflects concerns about retail slowdown and delays in new energy projects. Goldman Sachs, however, sees this as a buying opportunity, forecasting a 28% upside driven by retail recovery and refining margin improvements in FY26.

Analysts on X have been broadly positive. @tapydoshi emphasized RIL’s resilience, stating, “Retail and Digital drove strong growth while Oil-to-Chemicals margins faced pressure. Ongoing investments in New Energy and AI are critical future levers.”

@scanx_trade reinforced this, saying, “Reliance Industries Reports Strong FY2025 Results, Crosses ₹10 Lakh Crore Total Equity Milestone. View: Positive.” These comments reflect optimism about RIL’s long-term growth, particularly in consumer-facing and green energy segments.

Looking ahead, RIL’s growth trajectory hinges on its ability to scale new energy initiatives, sustain retail momentum, and navigate O2C volatility.

The potential Jio IPO, valued at $120 billion, and partnerships with global players like OpenAI and SpaceX could further boost sentiment. Analysts like Nuvama, with a ₹1,708 target, see RIL as a “Buy” for long-term investors, driven by its innovation in AI-driven services and cloud solutions.

Disclaimer: Stock market investments are subject to risks. Data and opinions are sourced from X posts and web reports. Consult certified financial advisors before investing.