Mumbai, India – Reliance Industries Ltd (RIL) has achieved a remarkable milestone, with all 33 analysts covering the stock now issuing a 'Buy' recommendation. This unanimous consensus, a rarity in the market, signals strong confidence in the Indian conglomerate's future prospects.
According to Bloomberg data compiled since 2012, RIL's 'Buy' ratings stood at just 31 percent at the start of 2013, peaking at 86 percent in that cycle. The current 100 percent 'Buy' rating marks an unprecedented level of analyst agreement, having remained above 90 percent since March 2025.
Strong Q2 Results Drive Upgrades
The recent surge in positive sentiment follows RIL's robust second-quarter results. Notably, Kotak Institutional Equities and Avendus Spark upgraded their ratings on the stock post-earnings. Goldman Sachs' Nikhil Bhandari has set the highest target price for the oil-to-telecom major at Rs 1,840.
Other leading brokerages have also expressed strong optimism: CLSA's Vikash Kumar Jain projects a target of Rs 1,800, ICICI Securities' Probal Sen sees the stock reaching Rs 1,740, and JM Financial has set a target of Rs 1,730.
Oil-to-Chemical (O2C) Segment Shines
Jefferies highlighted that RIL's Oil-to-Chemical (O2C) segment delivered a significant beat in Q2, contributing to a 6 percent consolidated EBITDA beat over its estimates. This strong performance was attributed to several factors:
- Multi-year lows in diesel inventories in Europe and gasoline in the US, supporting crack spreads.
- Higher export volumes for RIL due to improved crude availability.
- Delayed normalization of petrochemical feedstock supplies from the Middle East, boosting petchem spreads for FY27.
Emkay analysts further noted that global gasoline and diesel inventories were 6-10 percent below their five-year averages. They anticipate that winter stocking and inventory replenishment will continue to support near-term crack spreads. Fuel cracks rose 3-3.7 times year-on-year in Q2, with gasoline, diesel, and ATF cracks reaching $24.9, $65.8, and $59.3 per barrel, respectively. Supply disruptions, Russian export restrictions, and low product inventories were key drivers for improved margins.
Despite the strong O2C performance, Jefferies noted that the Retail segment's performance came in 6 percent below its estimates.
Technical Outlook and Future Estimates
While Nomura recently adjusted its FY27 and FY28 EBITDA estimates for RIL, raising O2C projections but lowering forecasts for the Retail business, the overall sentiment remains positive. Nomura also slightly lowered its target to Rs 1,560 due to rolling forward earnings estimates by a quarter.
Technically, after a prolonged correction of over 25 percent from its all-time high, the RIL stock is currently trading near an important support zone. Kotak Neo suggests that momentum indicators point to a strong possibility of a fresh uptrend, indicating the corrective wave has completed and a new upward trajectory is expected.
This widespread analyst confidence underscores a pivotal moment for Reliance Industries, as it navigates global market dynamics and capitalizes on its diversified business strengths.