RIL shares surge 11.6% on strong Q2 earnings; analysts see further upside

Mumbai: Reliance Industries, India's largest company by market value, soared 11.6% on Monday, its biggest single-day gain in six-and-a-half years, to ₹1,299 after reporting better-than-expected September-quarter earnings.

The rally added ₹1.83 lakh crore to the conglomerate's market value, taking it to ₹17.57 lakh crore.

The surge on Monday, the sharpest in a day since April 2020 and the third highest single-day gain in 10 years, prompted analysts to turn more positive on the stock's near-term outlook.

"Reliance has witnessed a breakout from its recent consolidation phase, accompanied by significant volumes, indicating a potential shift in chart structure and early signs of technical bottom formation," said Vatsal Bhuva, technical analyst at LKP Securities.

In the near term, the stock could move towards its previous swing high in the ₹1,320-1,330 zone, he said, adding that a decisive breakout above this level would provide stronger confirmation of a trend reversal.

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Reliance emerged as the top gainer on the Nifty and the biggest contributor to the benchmark index's advance, while also leading trading volumes on both NSE and BSE. "RIL reported a strong set of 2QFY27 results on the back of strong O2C performance and in-line performance of the recently listed Jio Platforms business," said Sunny Agrawal, head of fundamental research at SBI Securities.

Agrawal said the stock was trading at reasonable valuations and likely attracted fresh institutional buying. Part of Monday's rally may also have been driven by short covering, he said.

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Brokerage Jefferies said the stock traded 2 standard deviation (SD) below the long-term average Enterprise Value/Earnings Before Interest, Tax, Depreciation, and Amortisation (EV/Ebitda), suggesting maximum pessimism.

"Earnings upgrades and a recovery in retail growth to mid-teens should re-rate the stock," said Jefferies, while maintaining its buy rating and price target of ₹1,710 for September 2028. Agrawal recommended the stock from a medium- to long-term perspective, citing strong operating performance and attractive valuations.