Reliance Industries reported strong Q3 FY2025 financial results, beating analyst estimates on key parameters. The consolidated net profit stood at ₹18,540 crore, a 7% YoY increase compared to ₹17,265 crore in Q3 FY2024. Consolidated revenue rose 7% YoY to ₹2.43 lakh crore, slightly above the consensus estimate of ₹2.36 lakh crore. EBITDA grew 7.8% YoY to ₹48,003 crore, reflecting operational efficiencies and margin improvements across segments.

Key drivers of growth included: - Oil-to-Chemicals (O2C) segment: Benefited from recovery in refining margins globally, with EBITDA rising 13.5% YoY to ₹38,460 crore. - Telecom (Jio): Achieved a 60% YoY jump in digital revenue, with a subscriber base crossing 170 million, contributing significantly to consolidated earnings. - Retail: Reported revenue of ₹90,333 crore, up 8.8% YoY, with EBITDA up 9.5% YoY to ₹6,828 crore, driven by festive season demand and productivity improvements.

Segmental Revenue and EBITDA Highlights (₹ crore):

The company’s diversified business model cushioned volatility in commodity cycles, while digital and retail segments drove sustainable growth. The EBITDA margin expansion to 19.8% from 19.6% reflects operational leverage. Reliance’s strong Q3 results have triggered a positive price reaction on NSE and BSE, with shares rallying over 4% post-announcement.

Reliance Industries is aggressively pivoting towards green energy, aligning with India’s renewable energy targets and global sustainability trends. The company aims to become a net-zero carbon emitter by 2035, investing heavily in renewable power generation, green hydrogen, and clean fuel technologies.

Key initiatives include: - Renewable Energy Capacity Expansion: Reliance plans to increase its renewable energy capacity to 100 GW by 2030, focusing on solar and wind projects. - Green Hydrogen Production: The company is developing green hydrogen plants in Gujarat, leveraging its existing petrochemical infrastructure. - Electric Vehicle (EV) Ecosystem:** Reliance is investing in EV charging infrastructure and battery manufacturing, partnering with Indian and global firms.

This green energy push is supported by favorable government policies such as accelerated depreciation benefits for renewable assets, subsidies for EV infrastructure, and SEBI’s ESG disclosure mandates for listed companies. For investors, this transition represents a long-term growth avenue beyond traditional hydrocarbon businesses.

Investment Implications:** - Reliance’s diversification into green energy reduces exposure to fossil fuel volatility. - Early investments in green hydrogen and EV infrastructure position the company as a pioneer in emerging sectors. - Potential for strategic partnerships and government incentives enhances return prospects.

However, investors should consider execution risks, capital intensity, and regulatory changes that may impact timelines and profitability.

Given Reliance Industries’ strong Q3 FY2025 earnings and strategic green energy initiatives, investors should consider the following actionable insights and risks:

Investment Strategies: - Long-term Growth Play: Reliance’s diversified business model combining stable cash flows from O2C and high-growth digital/retail segments with emerging green energy projects offers balanced growth. - Sector Allocation: Consider increasing allocation in energy and consumer discretionary sectors via Reliance stock or sectoral mutual funds/ETFs. - Trading Opportunities: Post-earnings volatility can be leveraged for tactical trades; monitor volume and price action on NSE/BSE. - ESG Focus:** Investors prioritizing ESG criteria may find Reliance’s green energy pivot aligned with sustainable investing mandates.

Risk Factors: - Commodity Price Volatility: Fluctuations in crude oil prices can impact refining margins and profitability. - Execution Risks: Delays or cost overruns in green energy projects could impact expected returns. - Regulatory Changes: Policy shifts in energy, telecom, or retail sectors may affect business operations. - Market Sentiment:** Macroeconomic factors such as inflation, interest rates, and geopolitical risks influence stock performance.

Comparative Fund Exposure:** Investors may also consider mutual funds with significant Reliance holdings for diversified risk exposure.

Price Target and Outlook:** Based on current fundamentals and growth trajectory, analysts have set a 12-month price target range of ₹2,900-3,100 per share, representing a potential upside of 10-15% from current levels. Investors with a medium to long-term horizon can consider incremental accumulation, balancing risks with the company’s strong market position and strategic initiatives.