Winning Bizness Desk
Mumbai.Reliance Industries shares rose more than 2% during Monday’s trade, touching around ₹1,345, as investors reacted positively to the company’s 49th Annual General Meeting and the filing of Jio Platforms’ Draft Red Herring Prospectus (DRHP) with market regulator SEBI. The AGM offered a detailed glimpse into Reliance’s next phase of growth, spanning telecom, artificial intelligence, new energy and specialty chemicals. Several leading brokerage houses have reaffirmed their bullish stance on the stock, citing strong value creation opportunities ahead. The market has particularly welcomed the progress towards Jio’s public listing and the company’s aggressive investments in future technologies.
Jio IPO seen as major value unlock
Brokerage firm Nomura believes the proposed Jio IPO will unlock significant value within Reliance’s digital business and create a dedicated investment opportunity for telecom-focused investors. The filing of the DRHP marks the formal beginning of Jio’s listing process and could lead to one of the largest IPOs in India’s capital market history.
Key brokerage observations include:
- Jio listing may unlock hidden digital business value
- Telecom-focused investors get a direct investment route
- Nomura retains ‘Buy’ rating on Reliance
- Target price maintained at ₹1,640
Analysts believe the listing will provide better visibility into Jio’s earnings potential and strengthen investor confidence in Reliance’s digital ecosystem.
Reliance Intelligence moves into execution stage
Another major highlight from the AGM was the advancement of Reliance’s artificial intelligence strategy. According to Nomura, the company’s AI initiative, branded as Reliance Intelligence, has now moved beyond the planning stage and entered execution. A sovereign AI hub is being developed in Jamnagar, with an initial target of 120 MW capacity by the end of FY26.Important AI developments include:
- Jamnagar AI hub under active development
- First 120 MW capacity targeted by FY26-end
- Significant capital expenditure planned
- AI expected to emerge as a long-term growth engine
The move reflects Reliance’s ambition to build large-scale digital infrastructure and participate in India’s rapidly expanding AI economy.
High-value chemicals and domestic manufacturing push
Brokerage house MK Global believes the next growth phase in Reliance’s Oil-to-Chemicals business will come from investments in high-value chemicals and advanced materials. The company’s 3 million tonnes per annum PTA project at Dahej is progressing rapidly and is expected to strengthen its position in the polyester value chain.
At the same time, the 1.2 million tonnes per annum PVC facility at Nagothane is expected to reduce India’s import dependence while meeting rising domestic demand from infrastructure, construction and consumer sectors. MK Global has maintained a ‘Buy’ rating with a target price of ₹1,680.
New energy projects and EBITDA expansion
Antique Stock Broking expects Reliance to more than double its consolidated EBITDA over the next five years, potentially reaching ₹4.2-4.5 trillion by FY31. The brokerage believes this could significantly improve return on capital employed and trigger a market re-rating.
Major growth triggers identified are:
- Jio IPO-driven value unlocking
- Commissioning of a 10 GW integrated solar project
- Operationalisation of a 40 GW battery manufacturing facility
- Solar, battery and hydrogen projects in Kutch
The brokerage has reiterated its ‘Buy’ recommendation with a target price of ₹1,670.
Digital business remains core growth driver
Motilal Oswal Financial Services expects Reliance Jio to remain the company’s strongest growth engine. The brokerage estimates that the digital segment could contribute nearly 80% of Reliance’s incremental EBITDA over the coming years. Wireless tariff hikes, market share gains and expansion in home and enterprise services are expected to support EBITDA growth of around 18% between FY26 and FY28.
Meanwhile, Nuvama believes the new energy business will begin making a meaningful financial contribution from FY27 onwards. Expansion of solar module and cell manufacturing capacity to 20 GW, along with growth from Reliance Intelligence and Reliance Consumer Products, could create fresh earnings streams. However, it has cautioned that slower global demand and excess capacity could pressure refining and chemical margins. Nuvama has assigned the highest target price among major brokerages at ₹1,765, while Motilal Oswal has set a target of ₹1,655. Analysts also expect lower capital expenditure intensity and stronger free cash flows to help reduce debt levels in the coming years.
