Reliance Entry done @ 1425RELIANCE INDUSTRIES LTDNSE:RELIANCEDrAmansinghReliance Industries Ltd (RIL) shares are experiencing a decline, currently trading around ₹1424-1425. This recent dip comes despite the company reporting robust Q1 FY26 results with a significant 78% year-on-year rise in consolidated net profit to ₹26,994 crore, largely driven by a one-time gain from the stake sale in Asian Paints. Current Scenario and Key Observations: * Falling Price: The stock has seen a considerable fall in the past few days, with reports indicating a crash of around 2.7% on BSE today, and a drop of over 6% in July so far. * Q1 FY26 Performance: * Net Profit: RIL reported its highest-ever consolidated net profit of ₹26,994 crore for Q1 FY26, significantly beating market estimates. * Revenue: Revenue from operations increased by 5.3% to ₹2,48,660 crore. * EBITDA: Consolidated EBITDA jumped 36% to ₹58,024 crore, with EBITDA margin improving to 21.2%. * Segmental Performance: * Jio Platforms: Reported a strong 23.9% YoY increase in EBITDA, driven by ARPU growth and operational efficiency. Jio has also surpassed 200 million 5G subscribers. * Reliance Retail: Posted an 11.3% YoY increase in revenue, though some reports indicate a slowdown in consumer electronics sales and space addition lagging expectations. * Oil-to-Chemicals (O2C): Saw a slight revenue decline due to weaker crude prices and planned maintenance, but EBITDA climbed due to improved transportation fuel margins. * Analyst Outlook: Despite the recent fall, many major brokerages have maintained "Buy" or "Overweight" ratings on RIL, with target prices generally ranging from ₹1500 to ₹1767. They remain sanguine about RIL's long-term growth prospects, especially in the New Energy segment, Jio, and Retail. * Growth Drivers: * New Energy: RIL is heavily investing in the new energy sector, with plans to commission giga-factories for solar PV, fuel cells, and batteries over the next 4-6 quarters, aiming for a self-funded platform and perpetual growth. * Digital Services: Continued expansion and growth in Jio Platforms, including 5G deployment and broadband connections. * Retail Expansion: Ongoing growth and diversification within the retail segment. * Debt: While the net profit was record-breaking, net debt has slightly increased, reflecting capex intensity in digital infrastructure, new energy, and retail expansion. Investment Consideration with Stop Loss: Given the current falling price at ₹1424 and your stated stop loss limit of not more than 5% of your total portfolio, this indicates a cautious approach. While the stock has corrected, many analysts see this as a potential buying opportunity due to strong fundamentals and future growth drivers, especially in the New Energy and Digital segments. However, it is crucial to consider: * Volatility: RIL stock is currently exhibiting some volatility. * Market Sentiment: The broader market conditions and immediate investor reaction to the Q1 results seem to be weighing on the stock despite the strong underlying performance. * Risk Management: Adhering to your 5% portfolio stop loss is a prudent strategy to mitigate potential downside risk in a volatile market.