ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. Reliance Industries's annualized return on invested capital (ROIC %) for the quarter that ended in Mar. 2026 was 4.75%.
As of today (2026-06-29), Reliance Industries's WACC % is 12.00%. Reliance Industries's ROIC % is 5.34% (calculated using TTM income statement data).
Reliance Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Reliance Industries (FRA:RLI) ROIC % Explanation
ROIC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROIC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, Reliance Industries's WACC % is 12.00%. Reliance Industries's ROIC % is 5.34% (calculated using TTM income statement data).
Reliance Industries earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROIC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Reliance Industries ROIC % Related Terms
Reliance Industries ROIC % Historical Data
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The historical data trend for Reliance Industries's ROIC % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Oil & Gas Refining & Marketing subindustry, Reliance Industries's ROIC %, along with its competitors' market caps and ROIC % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Reliance Industries ROIC % vs Oil & Gas Industry
For the Oil & Gas industry and Energy sector, Reliance Industries's ROIC % distribution charts can be found below:
* The bar in red indicates where Reliance Industries's ROIC % falls into.
Note:
The Operating Income data used here is four times the quarterly (Mar. 2026) data.
The tax rate is limited to between 0% and 100%.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Reliance Industries (FRA:RLI) has a ROIC % of 4.75% as of Mar. 2026. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Reliance Industries and its competitors.
Is Reliance Industries' ROIC % too high?
Reliance Industries' current ROIC % is 4.75%. The Oil & Gas industry median ROIC % is 3.66. Reliance Industries' value of 4.75% is 30% above this industry median. Overall, Reliance Industries has a GF Score™ of 91/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Reliance Industries' ROIC % compare to VLO and MPC?
Reliance Industries' ROIC % of 4.75% can be compared against companies in the Oil & Gas industry. The industry median ROIC % is 3.66. Reliance Industries' value of 4.75% is 30% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROIC % for an Oil & Gas company?
The median ROIC % among Oil & Gas companies is 3.66, based on 1,002 companies in the industry. Companies in the top quartile (top 25%) have a ROIC % significantly above this median, while those in the bottom quartile fall well below. However, ROIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Reliance Industries's current ROIC % of 4.75% is 30% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROIC % mean?
A high ROIC % can signal that a stock is expensive relative to its fundamentals. Return on invested capital is the ratio of current-period net income to average two-period invested capital. View historical data on Reliance Industries and its competitors. For the Oil & Gas industry, the median ROIC % is 3.66 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Reliance Industries's current ROIC % is 4.75%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Reliance Industries stock overvalued right now?
Based on GuruFocus' analysis, Reliance Industries (FRA:RLI) is currently considered Modestly Undervalued. The stock's GF Value™ is €59.02, compared to a current price of €49.30 — trading 16.5% below its estimated fair value. The current ROIC % is 4.75% and 30% above the Oil & Gas industry median of 3.66. Reliance Industries' overall GF Score™ is 91/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROIC % calculated?
ROIC % is calculated from a company's financial statements. For Reliance Industries (FRA:RLI), the current ROIC % is 4.75% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Reliance Industries (FRA:RLI) Overvalued in 2026?
Based on GuruFocus' analysis, Reliance Industries stock appears to be undervalued.
The current stock price of €49.30 is trading 16.5% below its estimated GF Value™ of €59.02.
GuruFocus considers Reliance Industries to be Modestly Undervalued.
Key valuation signals for FRA:RLI:
ROIC %: 4.75%
GF Value™: €59.02 vs. price of €49.30 (16.5% below fair value)
No single metric tells the full story. See the FRA:RLI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Reliance Industries Ltd is engaged in hydrocarbon exploration and production, refining and marketing, petrochemicals, financial services, retail, and communications. The company has five principal operating and reporting segments: Oil to Chemicals (O2C), Oil and Gas, Retail, Digital Services, and other services. Reliance's refineries produce a range of petroleum products that find use as fuel variants, feedstock, and fuel for power and cement plants. Fuels produced in refineries are exported to several countries and can be processed into any grade of gasoline or diesel. The Oil to Chemicals segment, which derives the majority of revenue, includes Refining, Petrochemicals, fuel retailing through Reliance BP Mobility Limited, aviation fuel, and bulk wholesale marketing.
91GF Score
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