Reliance Q1FY27 profit falls 22% YoY as Retail EBITDA slips 2%; Motilal Oswal trims target, keeps Buy

Reliance Industries posted Q1FY27 net profit of Rs 20,946 crore, down 22% YoY, with Retail EBITDA down 2% YoY even as JioMart expanded to 5,500 pin codes. Consolidated EBITDA rose 8% QoQ on an energy rebound. Motilal Oswal retained its Buy rating but cut the target price to Rs 1,550, with the stock at Rs 1,341.20.

— Source publishedMon, 20 Jul, 2026, 09:50 IST·First seen Mon, 20 Jul, 2026, 10:17 IST·Source Financial Express · BrandWagon

What happened

Reliance Industries' Q1FY27 profit fell 22% YoY on weaker Retail EBITDA, though energy rebound lifted overall results; Motilal Oswal retains Buy despite

Key facts

  • Q1FY27 net profit Rs 20,946 crore, down 22% YoY
  • consolidated EBITDA Rs 47,500 crore, up 8% QoQ, 11% YoY
  • Retail EBITDA down 2% YoY
  • JioMart covers 5,500 pin codes
  • target price Rs 1,550
  • stock at Rs 1,341.20

Why this matters

Retail's flat-to-declining EBITDA despite geographic expansion suggests Reliance's retail arm may need portfolio or operational restructuring to restore growth momentum.

What to watch

  • Q2FY27 Retail EBITDA trend - is -2% YoY a floor or start of a deeper slide
  • JioMart pin-code expansion pace vs actual order volume/GMV conversion
  • Refining margin (GRM) movement and its contribution to consolidated EBITDA
  • Competitive intensity from quick-commerce players eating into Reliance Retail's grocery/FMCG share
  • Any management guidance on Retail IPO/demerger timeline given prolonged EBITDA softness
  • Consumer spending data (urban discretionary, FMCG volume growth) as leading indicator for next quarter
  • Track management commentary on Retail same-store-sales growth and JioMart GMV in post-earnings call/investor presentation
  • Watch for incremental brokerage target revisions (JPMorgan, Nomura, CLSA) following Motilal Oswal's cut
  • Monitor Reliance Retail's store count/closure trends and category-wise performance (fashion, grocery, consumer electronics)
  • Assess capex allocation shifts between Retail, Jio, and O2C in upcoming quarters
  • Watch Jio's ARPU trajectory and any tariff hike signals that could offset retail weakness