Reliance Industries vs Adani Enterprises: Reliance Industries Limited and Adani Enterprises Limited are two major Indian companies growing at different rates. Over the past three years, Reliance’s sales have grown at approximately 11 to 12 percent annually, while operating profit has increased by around 15 percent. Adani Enterprises, on the other hand, has seen sales growth of 35 percent and profit growth of over 60 percent, making it a fast-growing company. However, in the recent 12 months, Reliance’s stock market performance has increased by 21 percent, while Adani’s has declined by 7 percent. These figures clearly indicate that Reliance’s Jio and retail businesses generate stable earnings, while Adani’s focus is on green energy and airports.
Reliance Industries’ Recent Performance
Reliance achieved total revenue of ₹283,000 crore in the second quarter of FY2026, a 9.9 percent increase from the previous year. EBITDA during this period exceeded ₹50,000 crore, registering a 14.6 percent increase, while net profit after tax was around ₹22,000 crore. The company’s net debt is ₹118,000 crore, but its debt-to-earnings ratio is only 0.58 times, indicating a strong financial position. Return on capital employed (ROE) has ranged between 9 and 10 percent. The stock has gained 27 percent since the beginning of the year, outperforming the Nifty index. These results were made possible by the company’s strong cash flow and diversified business model, particularly in oil, gas, and digital services. Overall, Reliance’s balance sheet remains strong.
Recent Performance of Adani Enterprises
Adani Enterprises’ revenue in the second quarter of FY2026 was ₹21,844 crore, a 5.8 percent decline from ₹23,000 crore in the previous year. EBITDA was ₹7,485 crore, but operating profit declined slightly. Nevertheless, profit after tax reached ₹3,414 crore, a 71.6 percent increase year-on-year. The company’s debt is ₹12,680 crore, and the debt-to-equity ratio is 0.47 times. ROE is 27.93 percent and ROCE is 25.62 percent, which are good performance. However, the stock has declined 17.46 percent over the past year. The company is investing heavily in infrastructure projects, which is expected to drive future growth, although recent quarters have shown a slowdown.
Growth, Valuation, and Risk Comparison
In terms of growth, Adani’s three-year sales CAGR was 35 percent, but recent quarters have stagnated, while Reliance’s growth has remained stable at 7 to 10 percent. Reliance’s P/E ratio ranges from 23 to 25, while Adani’s is 35.73, making it expensive. Reliance has a large market capitalization and stable earnings from Jio-Retail, while Adani offers high growth potential from green energy, but with more volatility. Reliance’s ROCE is 9.87 percent compared to Reliance’s 9.43 percent. On the debt front, Reliance’s total debt is ₹1.98 trillion, but lower leverage makes it stronger, while Adani’s debt-to-earnings ratio is higher at 11.41 times. Both companies are undertaking significant capex, such as Reliance’s ₹40,000 crore investment.
Disclaimer
This article is for informational purposes only and does not constitute investment advice. Investing in the stock market carries risk; please consult your financial advisor and conduct your own research. Past performance does not guarantee future results.