Reliance shares tumble 4.6%, m-cap erodes ₹88,000 crore as windfall tax returns amid oil surge

Shares of Reliance Industries Ltd (RIL), the country’s most valuable company by market capitalisation, came under severe selling pressure on Friday, 27 March, slipping 4.60% to the day’s low of ₹1,348 apiece and ending a two-day rally.

Friday's drop also marked the biggest single-day sell-off the stock has seen since June 2024, wiping out nearly ₹80,000 crore in market capitalisation. The sell-off in Mukesh Ambani-led company’s stock came after the government reintroduced windfall taxes on diesel and aviation turbine fuel (ATF) exports.

In a bid to ease pressure from rising crude oil prices—driven by the ongoing US–Israel–Iran conflict—the government on Friday cut excise duties on fuels, reducing petrol duty to ₹3 per litre and eliminating it on diesel. However, it also brought back the windfall tax, setting the diesel export tax at ₹21.5 per litre, along with a ₹29.5 per litre tax on aviation fuel exports.

India first imposed windfall profit taxes on 1 July 2022, joining a growing number of nations that tax supernormal profits of energy companies. At that time, export duties of ₹6 per litre each were levied on petrol and ATF, and ₹13 per litre on diesel, which was later scrapped on 2 December 2024, following a drop in crude oil prices.

The reintroduction of the windfall tax is likely to impact Reliance Industries, as it is the country’s largest fuel exporter. Its twin refineries at Jamnagar produce nearly 5 million tonnes of ATF, a significant portion of which is exported, accounting for about one-fourth of India's total ATF output, as per media reports.

Company denies purchase of Iranian-origin crude oil

In an exchange filing, the company also clarified that it has not purchased crude oil of Iranian origin, calling such claims “baseless” and misleading.

"Reliance Industries Limited categorically rejects recent media reports that the company has purchased crude oil of Iranian origin. These reports are baseless, leading to misleading and incorrect claims. We urge the concerned media outlets to verify facts before publication," the company said in its exchange filing on Thursday.

On 24 March, news agency Reuters reported that Reliance Industries had purchased 5 million barrels of Iranian crude, citing sources familiar with the matter.

The government reacted to the sharp rise in crude oil prices and decided to absorb the cost pressure instead of passing it on to consumers, with reports suggesting it could incur a revenue loss of ₹70 billion, with the net impact estimated at ₹55 billion per fortnight.

Since the war erupted in the Middle East on 28 February, following joint US and Israel attacks on Iran, the flow of oil tankers through the Strait of Hormuz has nearly come to a halt, cutting off a vital passage through which roughly one-fifth of the world’s oil passes on a typical day.

The prolonged closure of this crucial route has triggered a massive surge in crude prices, with Brent rising by over 55% in less than a month. Prices are still hovering above $110 per barrel, as traders fear that supply disruptions will persist, even as US President Donald Trump indicated that talks with Iran are progressing well.

Reliance Industries share price trend

The heavyweight stock has been struggling to gain momentum, remaining under pressure since the start of 2026. It declined 11.14% in January, with the sell-off easing in February, before slipping again in March, falling another 3.29% so far.

Year-to-date, the stock has fallen 14.16%, bringing its market capitalisation to ₹18,23,844 crore, down by nearly ₹3,00,000 crore from ₹21,24,210 crore. The decline has not only impacted the company’s shareholders but has also weighed heavily on the Nifty 50.

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