For investors in Reliance Industries, today was somewhat shocking if they keep track of the stock market. From the outset of the day, selling pressure was intense, causing RIL’s share price to drop by over 3.5 percent almost immediately.
A lot of people are asking themselves why the stock of such a large company fell so suddenly and sharply. However, the narrative behind this decline goes beyond the figures; it is also deeply connected to market sentiment and expectations.
The Reason for the Drop in Reliance Industries Shares
Although the Q3 results of Reliance Industries met expectations, the underperformance of the retail sector disappointed investors. As per a report by Emkay Global, the consolidated EBITDA of the company for Q3FY26 was around ₹460 billion, which is 4 percent lower than projected estimates. Especially the retail segment showed disappointment this time, reflecting the effects of reduced profitability and the demerger.
Nonetheless, the O2C business remained robust, experiencing a 10 percent growth. On the contrary, Jio’s performance was consistent and met expectations. The net increase in subscribers was also satisfactory, which somewhat alleviated the decline. Nonetheless, the retail segment’s lackluster performance dampened sentiment.
Reasons for Analysts’ Optimism Regarding the Future
Even in light of the downturn, the majority of analysts maintain an optimistic outlook for Reliance Industries’ future. This optimism is well-founded. In the next few quarters, the company will commission its solar manufacturing plant, which integrates all processes from wafer-ingot to glass and polysilicon. At the same time, the battery ecosystem is advancing rapidly.
Experts think that this business could elevate RIL’s value to new levels in the years ahead. Furthermore, Jio’s anticipated initial public offering in the early part of FY27 could serve as a significant catalyst.
Does this present a chance to ‘Buy on Dips’?
A number of analysts think that this drop in RIL represents a chance for investors with a long-term outlook. The company’s core fundamentals remain robust, and the stock has only declined due to slight weakness in the retail segment. In addition, forthcoming significant projects and events such as the Jio IPO could bolster the stock’s performance. Consequently, several brokerages regard this as a favorable chance to buy on the dip.
FAQs (Frequently Asked Questions)
Why did Reliance shares fall so much?
The shares saw a sharp decline due to weak performance in the retail business and some missed targets in Q3.
Did RIL’s market cap really fall by ₹69,000 crore?
Yes, at the intra-day low, the company’s market cap fell by approximately that amount.
Is Reliance still a strong company despite the fall?
According to experts, the company’s fundamentals are strong, and future projects will make it even stronger.
Is it a good time to invest now?
For the long term, this dip is considered a buying opportunity by many analysts, but the final decision should be made by the investor based on their risk tolerance.
Disclaimer: This article is for informational purposes only. The content provided herein does not constitute investment advice. The stock market is subject to risks; therefore, consult your financial advisor before making any investment decisions.
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