Reliance Industries Ltd. (RIL) — India’s most valuable company — has added a staggering ₹1.31 lakh crore to investor wealth in just two trading sessions. The jump in market capitalization comes on the back of stellar Q4 FY25 earnings, which not only beat street expectations but also highlighted the growing power of its digital and retail arms.
As of Tuesday, April 29, 2025, Reliance’s market cap surged to ₹18.90 lakh crore from ₹17.59 lakh crore on Friday, making it one of the most significant post-results rallies in recent times.
So, what triggered this surge? Let’s break down the key factors driving investor optimism.
1. Reliance Delivers a Strong Q4 FY25 Performance
Reliance Industries released its January-March quarter results (Q4 FY25) after market hours on Friday, and the numbers didn’t disappoint.
Key Financials (Consolidated):
- Net Profit: ₹19,407 crore, up 2.41% YoY
- Revenue from Operations: ₹2,64,573 crore, up 10% YoY
- EBITDA (Operating Profit): ₹43,832 crore, up 3.1% YoY
Street Expectations vs. Reality:
- Analysts had estimated net profit in the range of ₹18,471 crore to ₹18,820 crore.
- Reliance beat even the upper end of the estimate, signaling stronger-than-expected performance.
This outperformance drove renewed confidence among institutional investors and market participants, causing a rush to accumulate the stock.
2. Retail and Jio Power the Growth Engine
While Reliance’s legacy businesses in oil & gas and refining remain significant, it’s the retail and telecom arms — Reliance Retail and Jio Platforms — that are stealing the show.
Jio Platforms Ltd. (Telecom & Digital Services):
- Revenue: ₹39,853 crore, +18% YoY
- EBITDA: ₹17,016 crore, +18.5% YoY
- ARPU: ₹206.20 vs. ₹203.30 (rise driven by recent tariff hikes)
Starlink Collaboration:
A major highlight was Jio’s announcement of a strategic partnership with SpaceX to bring Starlink broadband services to India. Subject to regulatory approvals, Jio will:
- Offer Starlink devices in its retail stores
- Support customer service and installation
- Collaborate with SpaceX on infrastructure initiatives to boost India’s digital ecosystem
This futuristic vision puts Jio in a unique position to lead India’s digital transformation, especially in rural and remote areas.
Reliance Retail:
- Quarterly Revenue: ₹88,620 crore, +16% YoY
- EBITDA: ₹6,711 crore, +14% YoY
- New Stores Added in Q4: 1,085
For the full fiscal year FY25:
- Gross Revenue: ₹3,30,870 crore, +7.9% YoY
Reliance Retail continues to dominate the Indian organized retail space, spanning groceries, fashion, electronics, and more. The company’s aggressive offline expansion and digital play (through JioMart and partnerships) has further cemented its dominance.
3. Margins Under Pressure, but Analysts Stay Optimistic
Despite growth in revenue and EBITDA, EBITDA margins fell to 16.57%, down from 17.66% — a dip of 110 basis points.
This was mainly due to:
- Slight softness in refining margins
- Increased costs in scaling retail operations
- Continued investments in digital infrastructure
However, most analysts are not worried. The consensus is that margin compression is short-term and strategic investments will yield high returns in the long run.
4. Massive Market Cap Gain: ₹1.31 Lakh Crore in Just 2 Days
The surge in market capitalization post-results is one of the largest single-event wealth creations in recent months.
Market Capitalisation Trend:
- Friday (April 26): ₹17.59 lakh crore
- Tuesday (April 29): ₹18.90 lakh crore
- Absolute Increase: ₹1.31 lakh crore
- Percentage Rise in Stock: +7.43% in two sessions
Reliance Industries also emerged as one of the top gainers in the NIFTY50 index, significantly outperforming both peers and the broader market.
5. What’s Driving Investor Confidence?
a. Broad-Based Growth
Reliance has successfully transformed from an oil and gas giant to a consumer-led conglomerate. Its diversified engine — spanning telecom, retail, media, and clean energy — insulates it from volatility in any one sector.
b. Strategic Partnerships
The Jio-Starlink agreement is a long-term game changer. Collaborating with global players like SpaceX positions Reliance at the forefront of India’s digital and broadband revolution.
c. Earnings Beat
Beating profit and revenue expectations during a volatile global macroeconomic environment reinforces the view that Reliance can deliver consistent performance.
d. Institutional Buying
Reports indicate heavy institutional buying, both domestic and foreign, post-results. Fund managers have increased weightage in Reliance, citing predictable earnings, strong execution, and growth visibility.
6. What’s Next for the Stock?
Reliance Industries has proven time and again that it can pivot and lead in new sectors. Moving forward, key factors that could drive or impact the stock include:
- 5G monetization and user base expansion by Jio
- Retail IPO prospects
- Execution of clean energy and hydrogen plans
- Further regulatory clarity on Starlink tie-up
- Refining margins and crude oil price fluctuations
While short-term volatility is always a possibility, the long-term outlook for Reliance remains bullish.
Conclusion: Reliance Reinforces Its Leadership in Indian Markets
The past two sessions have shown the market’s confidence in Reliance Industries’ ability to not only weather macroeconomic uncertainties but also consistently deliver value across segments.
With strategic foresight, strong execution, and expanding footprint in sunrise sectors, Mukesh Ambani-led Reliance is proving that it is not just a company — but a transformational force in India’s economic and digital journey.
Investors who continue to believe in the long-term India growth story may see Reliance Industries as a central pillar of that narrative.
