Mukesh Ambani’s Reliance adds $10.5bn as shares jump 7%

Indian billionaire Mukesh Ambani’s Reliance Industries added about $10.5 billion in market value on Monday as its shares jumped more than 7% after the conglomerate reported a record quarterly profit.

Reliance shares rose 7.12% to Rs1,246.45 on the BSE in early trade, while on the National Stock Exchange they climbed 6.79% to Rs1,244, according to the Press Trust of India. The rally lifted the company’s market valuation by Rs1.002 trillion to Rs16.75 trillion ($175.9 billion).

Reliance was the biggest gainer on both the Sensex and the Nifty and drove a broad rally in Indian stocks. The Sensex rose 935.82 points to 75,390.02 in early trade, and the Nifty gained 248.15 points to 23,300.05, helped by easing oil prices and the return of foreign investors.

Ambani’s family controls Reliance through its promoter group, which holds roughly half of the company’s shares. As a result, the family’s paper wealth rises sharply whenever Reliance stock moves.

Investors were reacting to second-quarter results released late last week. Billionaires.Africa reported on Saturday that Reliance posted a record profit after tax of Rs29,550 crore ($3.1 billion) for the three months to Sept. 30, up 33.8% from a year earlier.

Profit attributable to shareholders rose about 40% to Rs25,548 crore ($2.7 billion). Consolidated revenue increased 27.8% to Rs3.62 lakh crore, and earnings before interest, taxes, depreciation and amortization climbed 23.9% to a record Rs62,409 crore.

The oil-to-chemicals business led the gains. Its EBITDA jumped 67.9% to Rs25,203 crore on revenue that rose 44.2% to Rs231,601 crore. Jio Platforms, the digital arm, raised its quarterly profit 13.7%, while Reliance Retail’s profit fell.

Brokers welcomed the numbers. Nomura said consolidated EBITDA rose 19% from the previous quarter and beat its estimates by 9%, according to The Week. Goldman Sachs said Reliance’s new energy capacity additions “remained on track.” Both firms kept buy ratings on the stock.

Analysts flagged a possible headwind, though. Higher freight costs for very large crude carriers could pressure refining margins in the current quarter, while processing discounted heavy crude may partly offset that.

Monday’s rally caps a busy stretch for India’s richest family. Jio Platforms completed India’s largest-ever initial public offering in October, led by Ambani’s son Akash, and became the country’s second most valuable company after listing.

Ambani also overtook Gautam Adani as India’s richest person again in October, as Reliance shares and the Jio listing lifted his fortune. The two tycoons have traded places several times this year as their companies’ stocks swing.

Reliance’s gains came in early trade, and the final closing move may differ.