CAPITAL STRUCTURE MANAGEMENT IN RELIANCE INDUSTRIES LIMITED: A STUDY OF DETERMINANTS

This study examines the capital structure management of Reliance Industries Limited (RIL) over the period FY 2022 to FY 2026, with a focus on the key financial determinants that shape the company's financing decisions.Using secondary data drawn from the company's annual reports and financial statements, the study applies ratio and trend analysis to evaluate the Debt-Equity Ratio, Profitability, Liquidity, Asset Tangibility, Growth Opportunity, Non-Debt Tax Shield, and Retained Earnings of the company.The findings show that RIL maintained an equity-dominant capital structure throughout the study period, with the Debt-Equity Ratio remaining below 1 despite a temporary rise to 0.63 in FY 2023 driven by expansion-related borrowing.Profitability remained stable between 6.6% and 7.3%, liquidity improved markedly after FY 2023, and asset tangibility rose steadily from 0.419 to 0.516, reflecting sustained investment in telecom, retail, and refining infrastructure.Growth opportunity peaked in FY 2024 before easing as major projects were completed, while retained earnings continued to support internal financing despite a gradual decline in its ratio.The study concludes that RIL has balanced its large-scale expansion into telecommunications, retail, digital services, and renewable energy with a prudent, low-risk financing strategy, and it offers suggestions to help the company sustain this balance going forward.