Reliance promoters raise stake to 50.5% despite worst stock run since 2011

The promoter and promoter group of Reliance Industries Ltd lifted their combined holding to 50.5% at the end of the June quarter, up from 50% in the previous three quarters. This marks the highest ownership level since September 2019. The increase is notable because it arrives just as the conglomerate's shares are on track for their worst annual performance in over a decade.

Chairman Mukesh Ambani directly held a 0.12% stake, according to BSE data. His family members—Nita, Isha, Akash, and Anant Ambani—each held 12% of the company at the end of the first quarter of fiscal 2026. The family's accumulation suggests a belief that the current valuation does not fully reflect the company's underlying earnings trajectory.

Domestic mutual funds are reaching a similar conclusion. Their combined exposure rose by 0.33 percentage points to 10.11%, with major buyers including SBI Mutual Fund and ICICI Prudential Mutual Fund. Foreign portfolio investors maintained a significant presence, holding 17.2% of the company, while public shareholders accounted for 11.1%.

The fundamental outlook for the June quarter appears to justify the institutional and insider buying. Equirus Securities projects consolidated net sales to jump 35% year-on-year to ₹3.28 lakh crore, with EBITDA rising 14.5% to ₹49,100 crore. Net profit is estimated to grow 13% to ₹24,593 crore. Systematix Institutional Equities offered a slightly more conservative view, expecting a 27% sales increase to ₹3.09 lakh crore and a 9.9% rise in EBITDA to ₹47,100 crore.

Analysts attribute the anticipated earnings strength to the oil-to-chemicals and telecom divisions. These segments are expected to absorb weakness in the retail and upstream businesses, as well as ongoing geopolitical tensions in West Asia. For the full fiscal year 2026, Reliance reported a 16% increase in net profit to ₹80,775 crore and a 9.75% rise in revenue from operations to ₹10.75 lakh crore.