Reliance Industries Shares Rally 8% After Q2 Results; M-Cap Jumps Rs 1.25 Lakh Crore, Jefferies Recommends BUY

An eye-popping rally is recorded in the largest stock in India, Reliance Industries, on November 2, 2026, after the behemoth posted record earnings in Q2FY27. The O2C business performance is the major driver for investors to buy Reliance stock. RIL shares have skyrocketed by at least 8%, while Jio Platforms jumped more than 3%. Not just that, Reliance also became the biggest contributor to the Sensex and Nifty 50's rally on Monday.

Reliance Industries Share Price:

At the time of writing, Reliance Industries share price traded at Rs 1256.25 apiece on BSE, up by 7.97% with market cap rising above Rs 17 lakh crore.

The market cap of Reliance Industries has climbed by a whopping Rs 125,446.64 crore in a single-day. Last week, on October 30th, the m-cap stood at Rs 15,74,578.54 crore.

At present, Reliance stock traded near its intraday high of Rs 1,258.70 apiece. Overall, the stock has skyrocketed by over 8%.

Reliance Industries Q2 Results:

Reliance's consolidated PAT came better than expected to Rs 25,548 crore, registering a growth of 41% from Rs 18,165 crore in the same quarter a year ago. Reliance had posted consolidated net profit of Rs 20,946 crore in the preceding quarter.

On the top-line front, consolidated revenue witnessed a massive 29% growth to Rs 362,268 crore, which is also the highest ever in a quarter. O2C business and Jio Platforms contributed to the strong revenue.

"During 2Q FY27, our businesses delivered a strong performance despite a complex operating environment. Commodity markets remained volatile while geopolitical tensions continued to weigh on global supply chains. Against this backdrop, the domestic orientation of our portfolio, combined with operational discipline and versatility of our integrated businesses, helped Reliance navigate external volatility effectively," said chairman and MD, Mukesh Ambani.

Meanwhile, Oil-to-Chemicals (O2C) revenue climbed by 44.2% YoY, led by sharp increase in crude and product prices. Crude price for the quarter increased 40.6%, whereas transportation fuel prices were up 50-78% Y-o-Y. Prices for most of the downstream chemical products were up 25-35% Y-o-Y, driven by strong feedstock prices.

Furthermore, Reliance Industries EBITDA increased by 23.9% Y-o-Y to Rs 62,409 crore. Under this, Jio's EBITDA climbed 16.6% YoY and O2C business EBITDA skyrocketed by a whopping 67.9% Y-o-Y.

Should You Buy Reliance Industries Share Price?

In its note, Jefferies said, "O2C delivered a strong beat, helping Consol EBITDA beat JEFe by 6%, though Retail was 6% below. Core Retail growth and EBITDA declined y/y due to a festive shift and continued drag from QC build-out. O2C profitability should be elevated in the winter with damage to refining infrastructure in the Middle East and Russia."

However, Jefferies also pointed out the weak quarter recorded by Reliance Retail. It said RR had another weak quarter, with revenue growth & EBITDA missing estimates. Festive shift partly weighed on growth; hence, 2Q & 3Q should be viewed together, per mgmt. No floor space addition over the past year also weighed. Digital-commerce investments & inflation weighed on margins. The management remains focused on scaling Q/C & defending share, implying near-term margin pressure. Unviable stores were further pruned.

Jefferies cut estimates by 2-3% for Reliance Retail, factoring in weaker retail growth & margin pressure.

However, the global broker is bullish on O2C business, which is the major contributor to Reliance's earnings. It added that O2C EBITDA rose 23% y/y and was 6% above JEFe. Margins are currently very strong, with a war-related impact on refining infrastructure in the Middle East and Russia (~3.5mbpd of refined product shipments lost since the start of the conflict).

Also, inventories of diesel in Europe (Ex 28) and gasoline in the US are at multi-year lows, supporting cracks. The company benefited from higher export volume due to better crude availability q/q. Petrochemical feedstock supplies from the Middle East are yet to normalise, supporting improvement in petchem spreads in FY27E.

Accordingly, Jefferies raised O2C EBITDA target by 15%/3% for FY27/28E.

Overall, on Reliance, Jefferies said, "We raise FY27/28E Ebitda 6%/2%. Stock trades > 2 SD below LT average, suggesting maximum pessimism." Maintain BUY for a target price of Rs 1,710.

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