Shares of Reliance Industries Ltd (RELI.NS) extended their losses on August 26, 2025, falling nearly 2 percent to Rs 1,396.45 amid mounting investor concerns over delayed IPO timelines and external pressures on its refining business. The decline follows a single-day halt and reflects broader unease surrounding the group’s monetisation strategy for its consumer-facing verticals and exposure to global crude dynamics.
Key Highlights From The Market Movement
- Reliance Industries shares fell 1.97 percent intraday, hitting a low of Rs 1,396.45
- The stock has declined over 7 percent since early July, underperforming the Nifty 50 index
- Investor sentiment weakened after reports confirmed delays in the IPOs of Reliance Jio Platforms and Reliance Retail
- Additional pressure came from geopolitical developments, including new EU tariffs on Russian crude imports
IPO Delays Raise Monetisation Concerns
- Reliance Jio Platforms, initially expected to go public in 2025, has postponed its listing to an undisclosed future date
- Analysts had projected Jio’s IPO to be India’s largest, with valuations ranging from USD 111 billion to USD 136 billion
- The delay stems from internal strategic shifts, including a focus on subscriber growth and revenue consolidation before listing
- Reliance Retail’s IPO has also been pushed back, now unlikely before 2027 or 2028 due to operational restructuring and earnings optimization
Investor Expectations And Market Reaction
- Market participants had built expectations around potential listing announcements during the Q1 FY26 earnings call
- The absence of clarity on IPO timelines triggered selling pressure, particularly among institutional investors
- Analysts believe the delay could impact Reliance’s ability to unlock value from its consumer businesses in the near term
- Despite the dip, some brokerages continue to maintain long-term bullish views, citing strong fundamentals and growth in digital and retail segments
Crude Tariffs Add To Refining Headwinds
- The European Union’s newly imposed sanctions on Russian crude have raised concerns for Reliance’s refining operations
- Reliance, which sources a significant portion of its feedstock from Russia, may face margin compression due to tariff-related cost escalations
- Market experts suggest the impact could be temporary, but it adds uncertainty to the company’s energy vertical
- Reliance has stated it will assess the implications of the sanctions and adjust its sourcing strategy accordingly
Q1 Performance And Segment Outlook
- Reliance reported robust EBITDA growth in its Jio Platforms business, with margins expanding to 24 percent
- The retail segment showed resilience, supported by increased consumer spending and credit availability
- The oil-to-chemicals business faced margin pressures due to volatile crude prices and regulatory shifts
- Management remains focused on long-term growth drivers, including AI infrastructure, green energy, and digital commerce
Conclusion
Reliance Industries’ 2 percent decline reflects a confluence of strategic delays and external pressures, particularly around its IPO roadmap and refining margins. While the postponement of Jio and Retail listings has dampened near-term sentiment, the company’s diversified portfolio and long-term initiatives continue to offer structural strength. As investors recalibrate expectations, the coming quarters will be crucial in determining how Reliance navigates monetisation, geopolitical risks, and sectoral shifts.
Sources: Economic Times, Business Today, Financial Express, Reuters India.
