Reliance Industries' m-cap surges ₹1.31 lakh crore in just two sessions; here is why

Investors' wealth in Reliance Industries, the country's most valuable company, surged by ₹1.31 lakh crore in two trading sessions after it reported strong set of earnings in March quarter post market hours on Friday. Market capitalisation or the sum-total value of outstanding shares of Reliance Industries surged to ₹18.90 lakh crore, at the day’s highest level, on Tuesday, April 29, from its Friday's market capitalisation of ₹17.59 lakh crore, data from the BSE showed.

The sharp up move in market capitalisation came after billionaire Mukesh Ambani-backed company surpassed street estimates in January-March quarter. The oil-to-telecom conglomerate reported net profit of ₹19,407 crore, marking an increase of 2.41% from ₹18,951 crore logged in the same period last year. Analysts were expecting the company to report net profit in range of ₹18,471-₹18,820 crore.

The strong performance by the company came on the back of stellar performance by its retail and Jio businesses, analysts said.

Reliance Industries revenue from operations advanced 10% to ₹2,64,573 crore at the end of the March quarter, as against ₹2,40,715 crore reported in the year-ago period beating estimate of ₹2,40,800 crore.

Operationally, Reliance Industries' operating profit, also known as earnings before interest, taxes, depreciation, and amortisation (EBITDA), rose 3.1% to ₹43,832 crore from ₹ 42,516 crore in the corresponding period last year. Its operating profit margin, also known as EBITDA margin, shrank by 110 basis points (bps) to 16.57% from 17.66%.

Reliance's Jio Platforms reported quarterly revenue ₹39,853 crore, registering annual growth of 18%. The company clocked average revenue per user (ARPU) improved to ₹206.20 from ₹203.30 due to flow through of tariff hike, the company said in a press release.

Jio's EBITDA in March quarter rose 18.5% annually to ₹17,016 crore.

"During the quarter, Jio announced an agreement with SpaceX to offer Starlink’s broadband internet services to its customers in India. This agreement is subject to SpaceX receiving authorizations to sell Starlink in India. Jio will offer Starlink equipment in its retail outlets and also establish a mechanism to support customer service installation and activation. Jio and SpaceX are also evaluating other complementary areas of cooperation to leverage their respective infrastructure to enhance India’s digital ecosystem further," the company said.

Reliance Retail's March quarter revenue rose 16% annually to ₹88,620 crore and its EBITDA advanced 14% to ₹6,711 crore. The company added 1,085 new stores during the quarter.

Reliance Retail recorded Gross Revenue of ₹ 3,30,870 crore for the year FY25, registering a growth of 7.9% over last year, the company said.

In the last two trading session, shares of Reliance Industries have surged as much as 7.43% outperforming the NIFTY50 index. The stock was also among the top gainers in the NIFTY50 basket.