Reliance Industries hits 52-week low, stock down 12% in one month | Markets News

Reliance Industries share price

The stock price of the conglomerate with a footprint from oil to retail was quoting lower for the ninth straight day, falling 7 per cent during the period. In the past one month, RIL has underperformed the market by falling 12 per cent, as compared to 4 per cent decline in the BSE Sensex. The stock by corrected 21 per cent from its 52-week high of ₹1,473.65 touched on January 5, 2026.

At 02:31 PM; RIL was quoting 1.8 per cent lower at ₹1,268, as compared to 0.9 per cent decline in the BSE Sensex. The average trading volumes at the counter jumped two-fold, with a combined 14.5 million equity shares changing hands on the NSE and BSE.

Why is RIL underperforming Sensex?

RIL expressed caution about the continuing headwinds emanating from the West Asian conflict, stressing that the outlook for 2026-27 (FY27) remains “extremely vulnerable to geopolitical, macro-economic and policy risks”. The firm also flagged that near-term retail consumption demand may remain sensitive to macro conditions.

In its annual report issued on Thursday, May 28, 2026, RIL said that global oil demand growth was likely to be tepid due to higher oil prices and an economic slowdown.

“Global oil demand growth is expected to be sluggish due to higher oil prices and economic slowdown in FY27 amid the (West Asia) conflict. Refinery and oil infrastructure damages which caused product supply losses are likely to take a longer period to recover, resulting in continual volatility in the market,” RIL said in its communiqué to shareholders in the annual report.

The FY27 outlook remains extremely vulnerable to geopolitical, macro-economic and policy risks. In FY 2026-27, volatile product and feedstock prices, supply disruptions from the Middle East, Government of India directives on SAED, petrochemical feedstock usage and duty exemption on key petrochemical products may weigh on domestic demand and margins, RIL said.

Meanwhile, natural gas is expected to play an increasingly critical role in India’s energy transition, with its share in the energy mix targeted to rise from around 6 per cent to 15 per cent by 2030. RIL’s gas portfolio remains well-positioned to support this structural shift, contributing nearly 30 per cent of the country’s domestic gas production. Continued development of deepwater and CBM assets, supported by existing infrastructure and operational efficiencies, is expected to further augment supplies and cater to India’s growing gas demand in FY27 and beyond, RIL said in its annual report.

Global energy and materials prices are inherently volatile, influenced by multiple factors that impact supply demand balances. These include pace of economic activity, consumer sentiment, new applications and use cases, capacity additions, and supply disruptions. Unplanned shutdowns, geo-political tensions and conflicts further contribute to volatility. Currency fluctuations, speculative trading, climate events, and regulatory or policy changes such as tariffs and sanctions also impact commodity prices and availability, the company said.

Meanwhile, post January to March 2026 quarter (Q4FY26) results, analysts at Motilal Oswal Financial Services cut their FY27E EBITDA and PAT by 3-4 per cent, due to challenges in the Energy business and delays in tariff hikes in RJio.

The brokerage firm expects RJio to remain the biggest growth driver (digital to contribute 80 per cent of RIL’s incremental EBITDA), with 18 per cent EBITDA compound annual growth rate (CAGR) over FY26-28E, driven by the wireless tariff hike (15 per cent in Q2), market share gains in wireless, and the continued ramp-up of Homes and Enterprise offerings.

After a subdued FY25, RIL’s O2C EBITDA improved in FY26 but was hit by higher crude premiums and high freight and insurance costs due to the West Asia conflict. Going ahead, Motilal Oswal Financial Services expect only a modest recovery over FY26-28E. Analyst’s FY28E consolidated EBITDA for O2C and E&P is broadly similar to FY24.  =====================================  Disclaimer: View and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers discretion is advised.