
CLSA maintains its Outperform rating on Reliance Industries, with a target price of ₹1,650. The brokerage noted that the company delivered better-than-expected Q3FY25 results, with EBITDA and profit surpassing estimates due to strong performance in the upstream and retail segments.
Retail EBITDA exceeded expectations by 8%, with EBITDA per square foot rising to a 10-quarter high. The consumer grocery business witnessed impressive growth of 37% YoY, underscoring the strength of the segment. Jio’s numbers, however, came in slightly below estimates due to a miss on ARPU, despite robust subscriber additions.
Management indicated that the streamlining of retail operations may be nearing completion, alongside progress in its plans for online grocery commerce, FMCG, and AI initiatives. CLSA views the company’s diversified business segments and continued growth momentum as strong drivers for its long-term outlook.
Reliance Q3FY25 Results:
- Net Profit: ₹18,540 crore (+7.4% YoY)
- Revenue: ₹2.40 lakh crore (+6.6% YoY)
- EBITDA: ₹43,789 crore (+8% YoY)
- EBITDA Margin: 18.3% (vs. 18.1% YoY)