Results: Reliance Industries Limited Beat Earnings Expectations And Analysts Now Have New Forecasts

Investors in Reliance Industries Limited (NSE:RELIANCE) had a good week, as its shares rose 2.0% to close at ₹1,323 following the release of its first-quarter results. Reliance Industries reported ₹3.1t in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of ₹15.48 beat expectations, being 5.2% higher than what the analysts expected. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the consensus forecast from Reliance Industries' 32 analysts is for revenues of ₹12t in 2027. This reflects a modest 5.9% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to ascend 17% to ₹64.41. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹12t and earnings per share (EPS) of ₹63.84 in 2027. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

View our latest analysis for Reliance Industries

It will come as no surprise then, to learn that the consensus price target is largely unchanged at ₹1,682. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. There are some variant perceptions on Reliance Industries, with the most bullish analyst valuing it at ₹1,890 and the most bearish at ₹1,360 per share. These price targets show that analysts do have some differing views on the business, but the estimates do not vary enough to suggest to us that some are betting on wild success or utter failure.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's pretty clear that there is an expectation that Reliance Industries' revenue growth will slow down substantially, with revenues to the end of 2027 expected to display 7.9% growth on an annualised basis. This is compared to a historical growth rate of 11% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 6.2% annually. So it's pretty clear that, while Reliance Industries' revenue growth is expected to slow, it's still expected to grow faster than the industry itself.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Reliance Industries going out to 2029, and you can see them free on our platform here.

You can also view our analysis of Reliance Industries' balance sheet, and whether we think Reliance Industries is carrying too much debt, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.