Strong Momentum To Continue In FY23, Say Analysts


Most analysts raised Reliance Industries Ltd.’s earnings estimates and target price after the second-quarter earnings, expecting the growth momentum to continue in FY23 on retail, upstream and oil-to-chemicals segments.

There are a few downside risks such as deterioration in refining margins, weakness in petrochemical margins, sharper rupee appreciation against the dollar, lower-than-expected tariff hikes in Reliance Jio Infocomm Ltd., and slowdown in Reliance Retail Ltd.’s growth, according to analysts.

RIL’s second-quarter profit fell on lower operating income and margins. The numbers were, however, better than what analysts expected.  

The Mukesh Ambani-led conglomerate’s consolidated profit declined 20.2% sequentially to Rs 15,512 crore in the quarter ended September, according to its exchange filing. That compares with the Rs 14,456.5-crore consensus estimate of analysts t tracked by Bloomberg. 

RIL Q2 FY23 Highlights (QoQ)  

  • Revenue from operations rose 4% to Rs 2,32,863 crore, against the estimated Rs 2,25,825.5 crore. 

  • Ebitda fell 17% to Rs 28,416 crore, compared with the Rs 30,335.5-crore forecast. 

  • Operating margin stood at 12.4% versus 15.6% as of June.   

Here’s what brokerages have to say about Reliance Industries’ Q2 FY23 results:


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