A Blockbuster Quarter for Reliance
Reliance Industries Limited (RIL) just proved—once again—why it’s India’s most formidable corporate powerhouse.
On April 22, 2024, the Mukesh Ambani-led conglomerate reported better-than-expected Q4 earnings, sending its stock soaring by 4.5% in a single trading session. With revenue crossing ₹2.4 lakh crore ($29 billion) and net profit jumping 18% YoY, analysts and investors are doubling down on their bullish bets.
But what’s driving this optimism? Is it just short-term euphoria, or does Reliance have a long-term growth story that justifies the hype?
In this deep dive, we’ll break down:
✅ Key highlights from Reliance’s Q4 results
✅ Why top brokerages are raising price targets
✅ The hidden growth engines beyond Jio and Retail
✅ What investors should watch in 2024-25
Let’s unpack the numbers behind the rally.
Reliance Q4 Results: The Big Numbers
1. Revenue & Profit Beat Estimates
- Revenue: ₹2.4 lakh crore (vs. ₹2.2 lakh crore expected)
- Net Profit: ₹21,327 crore (up 18% YoY)
- EBITDA: ₹42,982 crore (up 16% YoY)
Why it matters: This marks Reliance’s highest-ever quarterly revenue, fueled by strong performances in oil-to-chemicals (O2C), Jio, and Retail.
2. Jio’s Stellar Growth
- ARPU (Average Revenue Per User): ₹182 (up 2.3% QoQ)
- Subscriber Base: 481 million (adding 11 million new users)
- 5G Rollout: Now covers 85% of India
Expert Insight:
“Jio’s 5G monetization is just beginning. As data consumption grows, ARPU could cross ₹200 by FY25.”
— Sanjay Chawla, Telecom Analyst, JM Financial
3. Retail’s Unstoppable Expansion
- Revenue: ₹83,063 crore (up 24% YoY)
- Stores Added: 1,500+ new stores in FY24
- Digital Push: Ajio and JioMart scaling rapidly
Real-Life Example:
Reliance Retail’s “Store of the Future” in Mumbai uses AI-powered inventory tracking, reducing stockouts by 30%.
Why Brokerages Are Upgrading Reliance
1. Morgan Stanley: “Overweight”
- Price Target: ₹3,046 (15% upside)
- Key Reason: “Jio’s 5G and Retail’s omnichannel strategy will drive 20% EPS growth.”
2. Goldman Sachs: “Buy”
- Price Target: ₹3,200
- Key Reason: “O2C margins improving; green energy biz could be next growth trigger.”
3. CLSA: “Outperform”
- Price Target: ₹2,925
- Key Reason: “Retail and Jio will contribute 60% of EBITDA by FY26.”
The Hidden Growth Engines
1. Green Energy Bet
- ₹75,000 crore investment in solar, batteries, and hydrogen
- Giga Factories: Coming up in Gujarat
2. Financial Services (Jio Financial)
- Market Cap: Already ₹2.1 lakh crore
- Plans: Insurance, lending, and wealth management
3. New Commerce (JioMart + WhatsApp Integration)
- Goal: 10 million kirana stores digitized by 2025
Risks & Challenges
- Oil Price Volatility (impacts O2C margins)
- Regulatory Scrutiny (especially in telecom)
- Competition (Airtel, Tata, Amazon)
Final Verdict: Should You Invest?
✅ Short-Term: Momentum is strong post-Q4.
✅ Long-Term: Diversified biz makes it a solid bet.
⚠️ Watch For: 5G monetization, retail margins, and green energy progress.
What’s Next?
Reliance’s AGM in August could reveal new mega-plans. Stay tuned!
