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Profit-Taking Drives RIL Shares Lower
Reliance Industries Limited (RIL) shares tumbled 5.18% on Friday, falling to an intra-day low of ₹1,496.30, just a day after the energy giant touched a fresh 52-week high. The sharp decline suggests investors opted for profit-taking following the stock's significant recent gains.
Geopolitical Ripples From Venezuela
The recent surge to a 52-week high of ₹1,611.8 on Monday was partly influenced by geopolitical developments in Venezuela. Following U.S. military actions and President Donald Trump's stated intentions to assume control of Venezuela's oil sector, concerns over global crude supply emerged. RIL historically sourced approximately 20% of its crude oil from Venezuela's state oil company, PDVSA, before 2019.
Analyst Sees Margin Upside
Analysts at Jefferies noted that if the U.S. begins selling Venezuelan crude, Reliance could secure supplies at substantial discounts. This scenario is expected to directly bolster Reliance's Gross Refining Margins (GRMs). The firm highlighted RIL's unique capability to refine complex, heavy, and acidic crude oil, characteristic of Venezuelan output, a processing skill possessed by few refineries globally. Historically, Venezuelan crude has traded at a discount of $5-$8 per barrel compared to Brent crude.
Refinery Shipment Claims Denied
In parallel, Reliance Industries actively refuted claims published by Bloomberg suggesting three Russian oil tankers were en route to its Jamnagar refinery. The company stated on social media platform X that the report was "blatantly untrue," asserting that its Jamnagar facility had not received any such cargo.
Recent Performance and Earnings
RIL's stock had shown resilience, rising 1.87% in the preceding five trading days and 2.3% over the past month. Despite recent volatility, the shares have appreciated by 23.44% over the last 12 months. The oil-to-chemicals conglomerate recently posted a 9.6% year-on-year increase in net profit for the second quarter of the financial year 2026, reaching ₹18,165 crore. This growth was driven by a recovery in its core business segments, with consolidated revenue climbing 10% year-on-year to ₹2.55 lakh crore.