Shares of Reliance Industries Ltd (RIL) witnessed selling pressure in Thursday’s trade after a single-day halt. The stock slipped 1.97 per cent to hit a day low of Rs 1,396.45. Deven Choksey, Managing Director at DRChoksey FinServ Pvt Ltd, has attributed the decline in RIL stock to two key factors.
Choksey pointed out that investor expectations had been elevated ahead of the quarterly results, largely due to speculation surrounding a potential listing announcement for Jio Platforms.
“I believe that ahead of June 2025 quarter (Q1 FY26) results, there were expectations built largely because of the fact that Jio Platforms’ listing announcement would come. Now that announcement has not come in Q1 FY26 and it is quite possible that in the next AGM, some clarity may emerge in this particular area of activity. So, that is where I think the fall can be explained,” the market veteran said in an interaction with Business Today.
The second reason, Choksey added, is geopolitical in nature. He highlighted the imposition of significant tariffs on Russian crude as a potential risk factor for companies like Reliance that engage in crude oil refining. “The imposition of a significantly large amount of tariff on Russian crude is a concern. Crude oil refining companies like Reliance met with selling pressure in the market, but this may be temporary. I don’t think that it is permanent in nature,” he said.
The oil-to-retail giant came under pressure recently following the European Union’s newly imposed sanctions on Russian oil. RIL has stated that it will assess the implications of the latest round of sanctions imposed by the EU.
Despite the near-term concerns, Choksey remains optimistic about RIL’s retail and digital businesses. He expects the retail segment to benefit from increased consumer spending driven by tax savings and improved credit availability. “That could possibly give (a boost) to some of the marketing segments like electronics in the retail space,” he said, adding that Jio Platforms continues to post robust EBITDA growth of over 20 per cent, with management targeting 20-24 per cent growth levels.
Calling the dip a buying opportunity, Choksey stated, “This dip in the RIL share price is an opportunity for those who invest for the long term. Any fall in the stock price always offers another opportunity.”
On the earnings front, Mukesh Ambani-led RIL reported a 78 per cent year-on-year (YoY) surge in consolidated net profit to Rs 26,994 crore for the June 2025 quarter, compared to Rs 15,138 crore in the same period last year. Revenue for the quarter rose 5.26 per cent YoY to Rs 2,48,660 crore, up from Rs 2,36,217 crore in the corresponding quarter last year.