🚦 Reliance Q1 FY26 Results: What Happens If We Exclude the Asian Paints One-Off Gain?

CMP: ₹1,477 | Quarter: Q1 FY26
For Investors, By Profit From IT

Introduction

Reliance Industries made headlines in Q1 FY26 by posting its highest-ever net profit and EBITDA. But what many investors might not realize is that this performance included a significant one-time gain—₹8,924 crore from the sale of Asian Paints shares.
Let’s break down what the numbers look like with and without this one-off gain—and why it matters for long-term investors.

1️⃣ What Was the One-Off Gain?

• Other Income (One-off): ₹8,924 crore from the sale of Asian Paints shares
  
  

• This is included in both EBITDA and Net Profit for the quarter.
  
  

2️⃣ Headline Numbers: Reported vs. Recurring (Adjusted) Results

Takeaway:

• The reported numbers show a record-breaking jump, but the core business growth is lower (yet healthy!) when the one-off is excluded.
  
  

3️⃣ Effect on Profit Margins

• Calculation:
  
  

• Adjusted margins are calculated using recurring EBITDA and PAT, excluding the one-time gain.
  
  

Visual Tip:

• A bar chart showing both reported and adjusted margins side by side helps investors see the difference instantly.
  
  

4️⃣ Why Exclude One-Off Gains? (Investor Education)

• One-off gains (like this Asian Paints sale) can make a single quarter look unusually strong.
  
  

• Recurring profit and margins show the true health of the core business.
  
  

• For valuations, financial modeling, and long-term projections, it’s always better to focus on core/recurring numbers.
  
  

5️⃣ Key Takeaways for Investors 📊

• Reliance’s recurring growth remains solid—EBITDA up 15%, PAT up 25% YoY—even after excluding the one-time boost.
  
  

• Profit margins are still expanding, but not as much as headline numbers suggest.
  
  

• Always check for one-off items in financials before making investment decisions.
  
  

6️⃣ Conclusion: What Should Investors Do?

While the one-off gain gives a boost, Reliance’s core businesses are still delivering healthy growth. For long-term investment decisions, focus on recurring profits and sustainable margins.

7️⃣ Disclosure

This analysis is provided solely for informational purposes and does not constitute investment advice. Investors should do their own due diligence before investing.