Analysts revise earnings estimates of Reliance Industries by 1-4%

Petchem, refining, and Jio did well; price hike in telecom next trigger

After a beat in the operational performance in the April-June quarter of 2021-22 (FY22), brokerages have revised upwards their earnings estimates of India’s largest listed company by market capitalisation, Reliance Industries (RIL), by 1-4 per cent.

The earnings revision has been led by an improvement in margin performance in Reliance Jio, oil-to-chemicals (O2C) business, including the refining segment. But for major upgrades, the Street awaits other triggers to play out.

Although the biggest trigger continues to be tariff hikes, given the disproportionate impact they can have on Jio’s profitability and the Aramco deal, a further drop in debt levels and rebound in