Article
FINANCIAL ANALYSIS OF RELIANCE AND JIO
Reliance Industries Limited (RIL) and its telecom arm, Reliance Jio, represent two pillars of one of India's largest and most diversified conglomerates. Traditional financial analysis methods—such as ratio analysis, trend analysis, and common-size statements—help assess profitability, growth, and financial health over time. However, these methods often fail to uncover deeper, nonlinear patterns or accurately forecast future financial trends in dynamic sectors like telecom and energy.This study combines a conventional financial statement analysis of RIL and Jio with advanced predictive analytics. We apply Machine Learning (ML) models, including Random Forest and XGBoost, to identify the key drivers of profitability and predict revenue and net profit based on historical financial data and macroeconomic factors. Additionally, Deep Learning (DL) models, specifically Long Short-Term Memory (LSTM) networks, are employed to forecast time-series trends in quarterly revenue and stock prices.Our results reveal how the performance of Jio’s high-growth digital business contrasts with RIL’s diversified portfolio, highlighting sector-specific volatility and stability. The integration of AI-driven models not only enhances forecasting accuracy but also uncovers hidden interactions between business segments, market sentiment, and external economic indicators. The study underscores the transformative potential of combining traditional financial analysis with ML and DL to gain deeper strategic insights and improve forecasting precision.
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