Reliance Industries Limited (RIL), India’s largest conglomerate, witnessed a sharp rise in its stock price by approximately 5.5% following the announcement of its fourth-quarter (Q4) financial results for the fiscal year 2024-25. This strong performance made RIL the leading contributor to the Sensex’s remarkable 1,000-point surge on April 28, 2025, highlighting the company’s significant influence on the Indian equity markets.
Highlights from RIL’s Q4 FY25 Financial Performance
- Profit Growth: RIL posted a consolidated net profit of ₹19,407 crore in Q4 FY25, reflecting a 2.4% increase compared to the same period last year, exceeding market expectations of ₹18,471 crore.
- Revenue Increase: The company’s total revenue rose by 8.8% year-over-year to ₹2.88 lakh crore, driven by strong performances in its digital services (Reliance Jio), retail, and oil-to-chemicals (O2C) segments.
- Dividend Declaration: The board proposed a dividend of ₹5.50 per share for the fiscal year, rewarding shareholders amid robust earnings.
- Market Capitalization: RIL’s market value surged by nearly ₹1 trillion in a single day, reaching ₹18.60 trillion at its peak.
Market Reaction: RIL Stock Leads the Rally
On the day of the results announcement, RIL shares climbed as high as ₹1,374.9 per share, marking their largest intraday gain since early 2025. The stock eventually closed with a 4.8% gain at ₹1,362.8, significantly outperforming the broader Sensex, which rose by 944 points (1.19%) to finish at 80,156.23. This single stock was responsible for a substantial portion of the Sensex’s overall 1,000-point advance, underscoring its dominant role in the benchmark index.
Investor Wealth Impact:
The rally added close to ₹1 trillion in market capitalization in just one session, making RIL the first Indian company to cross the ₹10 trillion net worth milestone.
Factors Behind RIL’s Strong Q4 Showing
1. Digital and Retail Expansion:
Reliance Jio, the company’s digital arm, along with its retail operations, were key growth drivers. Analysts expect Jio’s earnings before interest, taxes, depreciation, and amortization (EBITDA) to grow at an annual rate of 21% over the next two years, supported by tariff hikes, subscriber growth, and expansion into home broadband and enterprise services.
2. Oil-to-Chemicals Segment:
Although the O2C division faced pressure from lower refining margins and increased industry capacity, it continued to contribute meaningfully to RIL’s revenue. The segment remained stable despite global economic uncertainties.
3. Strong Operational Execution:
Chairman Mukesh Ambani attributed the company’s steady performance to disciplined operations, continuous innovation, and a focus on addressing India’s evolving energy and consumer needs, even in a challenging global environment.
Brokerages Upgrade RIL Stock Outlook
Following the Q4 results, several brokerage firms revised their price targets upward, with some seeing potential gains of up to 31% from current levels. Target prices were raised to as high as ₹1,708 per share, reflecting confidence in RIL’s growth prospects across its diversified businesses.
For example, BNP Paribas India highlighted that while FY25 was a year of consolidation with moderate profit growth, FY26 looks promising due to ongoing expansion in consumer segments and new energy projects coming online.
Broader Market Impact of RIL’s Performance
RIL’s strong quarterly results and subsequent stock price surge had a positive effect on the overall market:
- Sensex and Nifty Gains: The Sensex climbed nearly 1,000 points, while the Nifty 50 rose by 273 points (1.14%) to close above 24,300, breaking a two-day losing streak.
- Sectoral Boost: The Nifty Oil & Gas index jumped 3.18%, led by RIL’s gains. Other sectors such as public sector banks and pharmaceuticals also benefited from improved market sentiment.
- Market Breadth: Mid- and small-cap stocks followed the upward trend, reflecting renewed investor confidence.
Dividend and Capital Raising Plans
In addition to strong earnings, RIL’s board approved a dividend payout of ₹5.50 per share and announced plans to raise ₹25,000 crore through bond issuances. These moves demonstrate the company’s commitment to rewarding shareholders while funding future growth initiatives.
What Lies Ahead for RIL Shares?
With a well-diversified business portfolio, strong growth in digital and retail segments, and ongoing investments in new energy, RIL is positioned for continued success. Analysts remain optimistic, noting the company’s ability to manage macroeconomic challenges while delivering consistent results.
Key Growth Drivers to Monitor:
- Continued tariff increases and subscriber additions in Jio’s telecom and broadband services
- Expansion of organized retail and e-commerce operations
- Progress in renewable energy and sustainability projects
- Recovery in refining margins and O2C segment performance as global conditions improve
Conclusion
The 5.5% surge in RIL shares following its Q4 results not only rewarded investors but also played a crucial role in driving the Sensex’s 1,000-point rally. With solid earnings, a healthy dividend, and positive broker sentiment, Reliance Industries remains a cornerstone of the Indian stock market. Investors will be closely watching the company’s next steps as it continues to lead India’s corporate growth story.
