Reliance Industries Limited (RIL) recorded one of its sharpest single-day rallies in recent years on 3 February 2026, with the share price jumping 7.12% to an intraday high of ₹1,489.50 on the NSE. The move reflects a decisive shift in how investors are valuing Reliance's energy security, geopolitical risk exposure, and fast-expanding digital and media ecosystem.
This analysis is written for equity investors, market analysts, and long-term portfolio builders looking to understand why Reliance Industries shares surged, whether the rally is fundamentally justified, and how the India-US trade deal and Jio Studios acquisition change Reliance's investment outlook.
Table of Contents:
- Reliance Industries Share Price Surge Explained
- India-US Trade Deal and Its Impact on Reliance O2C Business
- Jio Studios Acquisition of Sikhya Entertainment: Strategic Rationale
- Reliance Industries Financial Performance and Valuation Context
- Key Risks Investors Should Monitor
- Final Investor View on Reliance Industries Stock
- FAQs on Reliance Industries Share Price Rally
The rally in Reliance Industries Limited's stock was driven by two structurally positive developments:
- A landmark India-US trade agreement that reshapes crude sourcing and tariff exposure for Reliance's Oil-to-Chemicals business
- A strategic media acquisition by Jio Studios, strengthening Reliance's long-term digital content and intellectual property strategy
Together, these moves reduce downside risk in the legacy energy business while increasing optionality in high-margin digital and media segments.
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To evaluate how the market reacted to the February 2026 developments, check the Reliance share price along with updated charts and key valuation ratios.
The India-US trade deal emerged as the single biggest trigger for the stock move. Under the agreement, the US reduced reciprocal tariffs on Indian exports from 25% to 18%, while India committed to realigning its crude import strategy.
Key Investor Implications for Reliance Industries
Exit from Russian Crude
- Reliance was the world's largest seaborne buyer of Russian oil in 2025 at nearly 600,000 barrels per day
- The company had already reduced Russian imports to zero by January 2026, removing sanction-related uncertainty
Resumption of Venezuelan Crude Imports
- The deal allows India to restart crude imports from Venezuela
- Reliance's Jamnagar complex is optimised for heavy and sour crude, typically priced at a discount to Middle Eastern grades
- This improves Gross Refining Margins (GRMs) and earnings stability
Removal of Punitive Tariff Risk
- The US dropped a proposed 25% penalty tariff linked to India's energy ties with Russia
- This lowers geopolitical risk and improves visibility for Reliance's export-linked refining operations
Why This Matters for Investors
For equity markets, the trade deal transforms Reliance from a geopolitically exposed refiner into a more predictable global energy player, directly supporting valuation multiples.
Balancing the energy-led positive was a decisive move in Reliance's digital strategy. Jio Studios acquired a 50.1% stake in Sikhya Entertainment for ₹150 crore, reinforcing its content-first approach.
Strategic Benefits of the Acquisition:
1. Proven Content Credibility
Sikhya Entertainment, founded by Guneet Monga Kapoor, is India's only production house to win both an Academy Award and multiple National Film Awards
2. Shift from Distribution to IP Ownership
With OTT platforms facing subscription fatigue, Reliance is prioritising high-quality intellectual property over volume-led content
3. Global Export of Indian Stories
Sikhya's catalogue, including The Elephant Whisperers, The Lunchbox, Masaan, and Stree, positions Reliance to monetise Indian content globally
4. Ecosystem Synergy
The acquisition strengthens content pipelines for Jio Platforms, improving engagement and reducing dependence on external studios
This move deepens Reliance's competitive moat against global OTT rivals such as Netflix and Amazon Prime Video.
The rally needs to be viewed against Reliance's underlying financial strength.
Key Financial Metrics (Consolidated)
| Metric |
Latest Value |
Trend |
| Annual Revenue |
₹10.71 lakh crore |
Up 7.1% YoY |
| Annual Net Profit |
₹81,309 crore |
Stable |
| Jio ARPU |
₹213.7 |
Increasing |
| Net Debt |
₹1.17 lakh crore |
0.55x EBITDA |
What This Signals
- Strong cash flows support aggressive investments in media, digital, and clean energy
- Balance sheet remains manageable despite large capex cycles
- Earnings mix is increasingly driven by Retail, Digital Services, and Media, reducing oil price cyclicality
Several brokerages, including Prabhudas Lilladher and YES Securities, maintain Accumulate to Buy ratings with target prices between ₹1,480 and ₹1,640.
Despite the positive outlook, investors should track the following risks closely:
- Agricultural Market Access Issues: Domestic political resistance to US farm imports could delay elements of the trade deal
- Execution Risk in New Energy Projects: Green hydrogen and solar investments have long gestation periods before meaningful returns
- Final Tariff Implementation Details: While an 18% tariff has been signalled, detailed timelines and sector-specific clauses are still awaited
The February 2026 rally confirms Reliance Industries' ability to convert geopolitical shifts into strategic advantage. By exiting Russian crude, securing favourable trade terms, and acquiring Oscar-winning content capabilities, Reliance has simultaneously de-risked its energy business and premiumised its digital portfolio.
For long-term investors, Reliance Industries remains a core portfolio stock, offering diversified exposure to India's consumption growth, digital expansion, and energy transition themes within a single balance sheet.
1. Why did Reliance Industries' shares rise sharply in February 2026?
The rally was driven by the India-US trade deal, reducing energy-related risks and Jio Studios' acquisition, strengthening Reliance's digital content strategy.
2. How does the India-US trade deal benefit Reliance Industries?
It enables cheaper crude sourcing, removes punitive tariffs, and stabilises export-linked refining operations.
3. Is Reliance Industries still dependent on oil profits?
No. EBITDA contribution from retail, digital services, and media continues to rise, reducing reliance on refining cycles.
4. Does the Jio Studios acquisition improve long-term valuation?
Yes. Ownership of premium intellectual property improves margins, global monetisation potential, and ecosystem stickiness.
5. Is Reliance Industries a buy after the 7% rally?
Brokerages largely view the stock in the Accumulate zone, citing structural improvements rather than short-term sentiment.