As of late August 2025, brokerage reports on Reliance Industries (RIL) reflect a predominantly positive sentiment, with several firms maintaining or reiterating a “Buy” or “Overweight” rating. The outlook is driven by strong performance across its diverse business segments and significant long-term growth prospects, particularly in its consumer and new energy businesses.
Key analyst ratings and targets
- Average Target Price: Trendlyne’s consensus target for RIL is ₹1,633.56, suggesting a 15.92% upside from the August 23, 2025, closing price of ₹1,409.20.
- ICICI Direct: This firm maintains a “Buy” with a 12-18 month target of ₹3,050.
- Morgan Stanley: The global brokerage has an “Overweight” rating with a target price of ₹1,617 (as of July 2025), citing growth drivers in AI, green energy, and retail.
- Nuvama Institutional Equities: Back in April 2025, Nuvama had the highest target price among several firms, setting a “Buy” rating with a target of ₹1,708.
Recent performance and growth drivers
Q1 FY26 Results (June 2025 quarter) analysis:
- Digital Services: Jio Platforms saw revenue increase by 18.8% year-on-year (YoY), driven by strong subscriber growth and increased consumption.
- Retail: Reliance Retail reported an 11.3% YoY revenue increase, led by strategic initiatives, store additions, and operating efficiencies.
- Profit: RIL reported a 77% YoY increase in net profit, primarily due to a one-time gain from a stake sale in Asian Paints. Even without this exceptional item, profit was up 25% YoY.
Long-term growth catalysts:
- New Energy: RIL is investing heavily in green energy, with ambitious plans for solar, battery, and green hydrogen manufacturing. Brokers anticipate significant long-term value creation from this segment, although capital expenditure is expected to be substantial.
- Digital and AI: The company is positioning itself as a “deep tech” powerhouse, building AI infrastructure and data centers. This focus on AI is expected to create new revenue streams and improve operational efficiency.
- Consumer Businesses (Jio and Retail): Analysts expect RIL’s consumer-facing businesses to be the primary drivers of future growth, with Jio leveraging its 5G ecosystem and retail benefiting from store expansion and e-commerce initiatives.
- Traditional O2C business: While the focus is shifting, the Oil-to-Chemicals segment is expected to remain a steady generator of strong cash flows, supporting investments in new growth areas.
Potential risks
- Refining and Petrochemicals Volatility: The core Oil-to-Chemicals business is subject to cyclical swings in refining margins and petrochemical deltas, which can impact earnings.
- High Capital Expenditure: RIL’s ambitious growth plans in new energy, retail, and digital services require massive investments. This could mean free cash flow yields and return on capital employed (ROCE) improvements may be delayed.
- Competition: Intense competition, particularly in the telecom and retail sectors, could put pressure on growth and margins.
- Execution Risk: The speed and success of RIL’s execution in its capital-intensive new energy and technology ventures remain key monitorables for brokerages.
Disclaimer: This is a summary of recent brokerage reports and does not constitute financial advice. Investors should consult with a qualified financial advisor and perform their own due diligence before making investment decisions.
PLEASE CONSULT YOUR FINANCIAL ADVISOR : Investors are encouraged to conduct thorough independent research and consult with financial advisors before making any investment decisions.