Mumbai: Oil-to-telecom conglomerate Reliance Industries Ltd (RIL) on Tuesday surpassed India’s biggest software services firm Tata Consultancy Services Ltd (TCS) to become the country’s most valued firm in terms of market capitalization—a first since April. Data from the BSE showed RIL has a market cap of 7.51 trillion, after its shares rose 3.1% on the BSE to record high of 1,185.85. TCS, which closed 0.19% lower at 1,941.25 per share, was valued at 7.43 trillion.

The surge in RIL share price follows its Q1 results where its standalone net profit increased 18% to 9,459 crore. TCS, on its part, reported quarterly revenues of over $5 billion for the first time in Q1.

RIL shares have beaten the market by a wide margin in the past two months on expectations of a regulatory boost for its refining business and excitement about revenue accretion from its telecom subsidiary Reliance Jio’s non-mobile businesses.

It’s outperformance in Q1, however, was led by the petrochemical and refining realizations, which reported a 35% year-on-year jump in volumes, helped by the company’s expanded capacity. Revenue at the energy-to-telecom conglomerate rose 56.5% to 1.4 trillion against 90,537 crore in the corresponding previous quarter. Its telecom arm Reliance Jio reported a profit of 612 crore for the June quarter, a 19.9% rise on a sequential basis, on the back of a revenue of 8,109 crore from its operations, the company said.

“Reliance Jio continued to show strong subscriber momentum, in line with our expectation. However, flattish sequential ARPU despite cash back offers and changes to prime membership are surprises. Focus remains on onboarding more subscribers and driving engagement; price increase appears less of a focus for now," said Morgan Stanley in a note to its investors.

TCS on 10 July reported a 24% profit rise, the fastest pace in two years, to 7,340 crore due to robust growth in banking, financial services and insurance and the North American operations. Revenue grew 16% to 34,261 crore.

“TCS had a strong quarter witnessing a healthy growth on back of turnaround in the BFSI segment of the North American market and the management expects the growth to sustain in the coming quarters... TCS is on track to achieve its targeted double-digit growth in FY19. Yet, we believe that at current valuations, the stock is fairly priced from a short to medium-term perspective," said Indsec Securities in 12 July note.