RIL shares on slippery turf despite strong Q1 earnings, firm brokerage coverage

New Delhi, Aug 14 Reliance Industries Limited's (RIL) shares slipped over 7 per cent in the last 30 days despite firm coverage from top brokerages following the Indian conglomerate's posting of stronger-than-expected earnings in the first quarter of the current financial year (Q1 FY26).

As per market experts, the stock is in a corrective phase as US President Donald Trump’s crackdown on India importing Russian oil exports has come as a major blow to the Mukesh Ambani-led company.

RIL was a major importer of the cheap crude for processing at its giant oil refinery in Jamnagar on the Gujarat coast.

Investors are expected to remain cautious about the stock ahead of its Annual General Meeting (AGM) on August 29.

Market participants will closely watch the management’s commentary on plans to double overall business, updates on the IPO timelines for Jio and Reliance Retail, and growth prospects in the retail segment following the recent reshuffle.

Following RIL's posting of a robust 78 per cent year-on-year increase in its net profit at Rs 26,994 crore in Q1, brokerages like Morgan Stanley, Motilal Oswal, Novuma and Macquarie have either maintained or raised their rating for the stock.

However, the brokerages' coverage has not done enough to boost investors' sentiments.

The weak April-June quarter earnings and the muted Nifty due to Trump tariff concerns have also contributed to RIL's poor performance.

Earlier this week, the Financial Times reported that RIL was one of the biggest gainers of Russian crude purchases.

Private Indian refiners like Reliance have gained even more than government-owned competitors like Indian Oil and Bharat Petroleum because they exported more of their oil products, the report said, quoting Amrita Sen, director of research at data and analysis consultancy Energy Aspects.

In the past, the US did not oppose Russian oil imports as long as the price was lower than the $60 per barrel price cap set by the G7 nations to restrict Russia's profits.

Petroleum and Natural Gas Minister Hardeep Singh Puri had noted that India's purchases of Russian crude oil have contributed to the stabilisation of energy prices worldwide.

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