Reliance Industries Stock Up 3% After Strong Q2, Creates Rs 64,619 Cr Wealth; How RIL Fared After 1:1 Bonus?

The prosperity of Lakshmi Pujan on October 20th reached the investors of Reliance Industries (RIL) earlier than expected. On Monday, billionaire Mukesh Ambani's stock climbed by more than 3% and created over Rs 64,600 crore wealth in just less than an hour. The reason? Strong Q2 earnings for FY26! The prosperity is likely to continue as brokerages have upgraded their stance in Reliance due to the upbeat quarterly performance.

However, the occasion of Diwali also reminds me of one of the largest bonus issues of a 1:1 ratio that Reliance rewarded its investors last year as a Diwali gift. The stock price has significantly increased since then.

Reliance Industries Share Price:

At the time of writing, Reliance share price traded at Rs 1462 apiece on BSE, up by 3.2% with market cap of Rs 19,78,379.84 crore. The stock is trading near its intraday high of Rs 1464.80 apiece. Overall, Reliance has surged by 3.4% on BSE, emerging as one of the biggest contributors to the early rally on BSE and NSE on Monday.

Overall, in less than an hour of Monday, Reliance's market cap skyrocketed by Rs 64,619.20 crore, taking the total m-cap to Rs 19.82 lakh crore compared to last week's Friday m-cap of Rs 19.17 lakh crore.

Reliance Industries Q2 Results:

The large-cap oil and gas giant reported a consolidated PAT of Rs 18,165 crore in Q2FY26, which saw a mixed performance. The company posted YoY growth of 9.7% from PAT of Rs 16,563 crore recorded in Q2FY25, but declined by sharply by 32.7% from PAT of Rs 26,994 crore seen in the preceding quarter.

Meanwhile, its consolidated revenue from operations stood at Rs 258,898 crore in Q2FY26, registering growth of 9.94% from Rs 235,481 crore revenue of Q2FY25, and upside of 4.12% from Rs 248,660 crore revenue in Q1FY26.

Mukesh D. Ambani, Chairman and Managing Director, Reliance Industries Limited said: "Reliance delivered a robust performance during 2QFY26 led by strong contribution from O2C, Jio and Retail businesses. Consolidated EBITDA registered 14.6% growth on a Yo-Y basis, reflecting agile business operations, domestic focused portfolio and structural growth in Indian economy."

BUY Reliance Stock After Q2?

Brokerages like JM Financial, Morgan Stanley and Macquarie have recommended buy on Reliance and upgraded its target after Q2 results.

In its note, global brokerage Morgan Stanley pointed out that Reliance's 22% YoY growth in fashion revenue coupled with China's anti-involution policies that is expected to impact chemicals, solar & refining; and increasing efforts for AI adoption are likely to boost the company's growth in future.

Morgan expects Reliance's new energy movement and AI initiatives are estimated to add up to $50 billion in the behemoth's value creation.

Further, while recommending BUY, JM Financial has set Rs 1,700 target price due to the company's industry-leading capabilities and expectations of 15-20% EPS CAGR over the coming 3 years to 5 years.

Another global brokerage Macquarie has suggested BUY as well but with a 12-month target price of Rs 1,650.

Reliance Industries Stock Performance Since Bonus In Diwali Last Year:

This Mukesh Ambani company turned ex-bonus on October 28, 2024, during the festival of Diwali, to reward investors with 1:1 bonus issue. A 1:1 bonus issue ratio meant that Reliance allotted 1 new fully paid-up equity share of Rs 10 face value, against every 1 existing equity share of Rs 10 face value.

This was the first bonus issue by Reliance in seven years. The last bonus issue was also of 1:1 ratio in September 2017. While Reliance's first bonus issue was also of 1:1 in November 2009.

On the record date of October 28 last year, Reliance stock corrected Rs 2,655.70 to around Rs 1,335 apiece due to the bonus shares adjustment.

From the last bonus to now, Reliance stock has gained by nearly 10%.

Also, after the bonus, RIL delivered dividends of up to Rs 5.50 per share after its 48th AGM.

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