Reliance Industries Limited (RELIANCE) stock analysis

Reliance trades 25.78% below its high as earnings land today, with sales growing but returns lagging peers

Reliance Industries closed at 1,196.20 on Oct 27, 2026, down 23.83% year to date and 10.31% below its 200-day average. Revenue is growing and the next earnings report is due Oct 27, 2026, but returns on capital and shareholder yield sit at the bottom of its Indian energy peer group. The stock also trades at a premium to those peers on earnings and EBITDA.

Price: 1,196.20
Market Cap (USD): $170.10B
P/E: 20.04×
Div Yield: 0.50%
1Y Return: -18.45%
Next Earnings: Oct 27, 2026

Bull case

Trailing revenue grew 9.59% year over year and the latest quarter grew 12.50%, with revenue up for 3 straight quarters, well above the peer median of 3.47%.
Leverage is modest: debt to equity is 0.44×, net debt to EBITDA is 0.74× and net debt is 1.55T against 2.08T of trailing EBITDA.
The last report on Jul 17, 2026 beat EPS expectations by 5.08% and revenue by 1.73%, and the dividend has grown for 16 years (per-share payout of 6.00 per year).

Bear case

Return on invested capital is 9.09% and return on equity is 9.27%, both in the 0th percentile of the peer group, whose medians are 19.60% and 20.74%.
Valuation is at the top of the peer group: P/E of 20.04× against a sector median of 6.98×, and EV/EBITDA of 8.53× against 3.82×.
The trend is weak: the price is below the 50-day and 200-day averages, a death cross occurred on Mar 5, 2026, the one-year return is -18.45% and the relative strength rating is 32.

What to watch

Earnings due Oct 27, 2026 (confirmed), with next-quarter consensus EPS of 17.94 versus 15.50 in the latest reported figure; the following report is dated Jan 15, 2027 with consensus EPS of 21.08.
The 52-week low of 1,152.20, which was touched during the Oct 13 session and is 3.82% below the current price.
The 20-day high of 1,234.30 and the 50-day average of 1,245.04 as nearby resistance.
The 200-day average of 1,333.67 and the 52-week high of 1,611.80 as longer-term reference levels.

General

Reliance is a diversified conglomerate spanning refining, petrochemicals, retail, digital services and renewables. Sales are growing, but the shares have fallen 23.83% this year and trade at a premium to Indian energy peers. Earnings due Oct 27, 2026 are the near-term test.

Business and performance

The company operates in hydrocarbon exploration, refining, chemicals, textiles, retail, digital services, advanced materials, renewable energy and financial services. Trailing revenue is 10.57T, up 9.59% year over year, and net income is 807.75B. Net margin is 7.64% and operating margin is 11.47%.

Valuation in context

The P/E is 20.04× and EV/EBITDA is 8.53×, both in the 100th percentile of five large Indian energy companies. The sector medians are 6.98× and 3.82×. The dividend yield of 0.50% is in the 0th percentile, against a 5.92% median.

Market signals

The stock is 25.78% below its all-time high of 1,611.80 and its relative strength rating is 32. The 3-month return of -6.55% matches the peer median. Next-quarter consensus EPS is 17.94 and the report is due Oct 27, 2026.

Long-term investor

Revenue has compounded at 6.39% over three years and 17.76% over five, with EPS growth of 6.59% over three years. Leverage is moderate, but returns on capital of about 9% rank last among peers and the valuation is the highest in the group.

Growth and margins

Annual revenue rose from 4.67T in fiscal 2021 to 10.57T in fiscal 2026, and diluted EPS from 37.6 to 59.69. Gross margin changed -2.00% over the past year and operating margin -0.17%. Quarterly EPS of 12.54 in Q4 FY2026 was below the 14.34 of a year earlier.

Balance sheet and cash returns

Total debt is 3.98T against equity of 9.00T and interest coverage is 4.48×. Dividends paid were 74.43B in fiscal 2026 with a 10.05% payout ratio. There were no buybacks, and the share count is unchanged. Free cash flow was 518.54B in fiscal 2026 after negative years from 2021 to 2024.

Returns and valuation

ROIC is 9.09% and ROE is 9.27%, against peer medians of 19.60% and 20.74%. The price-to-book ratio is 1.80×. The earnings yield is 4.99%. The quality score is 24, in the 0th percentile, while the value score is 65 and the growth score is 63.

Swing trader

The trend is down: the price is below its 50-day and 200-day averages, though it holds just above its 20-day average. Momentum is neutral and the MACD histogram is positive. Earnings on Oct 27, 2026 make near-term volatility likely.

Trend and momentum

The price of 1,196.20 is 0.50% above the 20-day average of 1,190.23, 3.92% below the 50-day at 1,245.04 and 10.31% below the 200-day at 1,333.67. RSI is 46.27, ADX is 26.7, and the MACD of -12.12 is above its signal line of -16.88.

Recent sessions and levels

Shares ranged from 1,152.20 on Oct 13 to 1,234.30 on Oct 21 over 20 days. The latest session fell 0.47% on 15.1M shares, against a 30-day average of 13.9M. Support is the 52-week low of 1,152.20, and resistance is around 1,234.30.

Risk and catalysts

The 14-day ATR is 25.73, or 2.15% of price, and 20-day historical volatility is 24.83%. Earnings are due Oct 27, 2026, and the last earnings move was 2.04%. The relative strength rating is 32. No insider trades occurred in the past 90 days.

Analysis written October 28, 2026 from Qanvo data as of October 27, 2026. AI-generated, for information only; not investment advice.