Reliance Industries Ltd (RIL) has seen a flurry of analyst updates following its recent Q1 results, with most major brokerages recommending a 'Buy' on the stock. The consensus target price suggests a significant potential upside of 24% for the oil-to-telecom conglomerate.
Among the 20 analyst updates post-Q1, Goldman Sachs provided the highest target at Rs 1,870 apiece. In contrast, Macquarie offered the lowest target for the stock at Rs 1,510, while maintaining its 'Outperform' rating, according to Bloomberg data.
Several other foreign brokerages also weighed in. JPMorgan suggested an 'Overweight' rating with a target of Rs 1,660. Jefferies recommended 'Buy' with a target of Rs 1,705. Both Nomura and Citi set similar targets of Rs 1,690 each, while CLSA valued the stock at Rs 1,800.
Elara Securities noted that RIL shares have dropped 4% over the past three months, in line with the benchmark Nifty index. However, strong middle-distillate cracks and the clear visibility of a potential Jio IPO are seen as offsetting concerns regarding elevated crude premiums, SAED/under-recoveries in domestic fuel retailing, and retail margin dilution from Digital Commerce investments. Elara raised its FY27, FY28, and FY29 EBITDA estimates by 6-8%, citing a weaker rupee, stronger refining earnings, and sustained momentum in Digital Services, setting a target of Rs 1,619.
MOFSL observed that a rebound in energy profitability helped offset a softer performance in the Retail segment. The brokerage projected a 9-10% growth in RIL’s consolidated EBITDA and profit over FY26-28, excluding any significant near-term earnings contribution from RIL’s new energy, datacentre, AI, and FMCG businesses. MOFSL believes the peak of capital expenditure is behind the company, which should lead to healthy free cash flow generation, and suggested a target of Rs 1,550.
Emkay Global reported a 12% year-on-year growth in RIL's Retail revenue, although EBITDA missed their estimates due to margin contraction from the continued scale-up of its hyperlocal delivery business. Despite slightly lower-than-expected subscriber additions and Average Revenue Per User (ARPU), Jio experienced margin expansion, supported by operating leverage. Emkay retained its 'BUY' rating and a target price of Rs 1,680, raising its FY27 EPS estimate by 2% on stronger O2C earnings, partially offset by weaker retail performance.
The current consensus target price for RIL shares implies a 24% potential upside from its recent closing price of Rs 1,327.20.