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On Thursday, JPMorgan analysts raised the price target for Reliance Industries (NSE:RELI) stock (RIL:IN) to INR1,568 from INR1,530, while maintaining an Overweight rating. The analysts highlighted that despite a decline in refining and petrochemical margins, the downside is expected to be limited over the fiscal year 2025 levels.
The analysts noted that the oil-to-chemical (O2C) segment now represents only a third of Reliance Industries’ consolidated EBITDA. This suggests that any negative impact from margin weakness should be reduced. They also pointed out that favorable base effects are anticipated for the Retail and Telecom (BCBA:TECO2m) segments in the first half of fiscal year 2026, which could support earnings growth.
Reliance Industries’ exploration and production (E&P) output is projected to decrease year-over-year in fiscal year 2026. According to the analysts, this may result in a lower depreciation charge for the segment. They further mentioned that the company’s profit after tax (PAT) for fiscal year 2026 could benefit from unexpected positive factors.
The analysts concluded that the expected growth in EBITDA from the Telecom and Retail sectors should translate into improved bottom-line results for Reliance Industries in fiscal years 2026 and 2027.
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