NEW DELHI: Major brokerages are maintaining a positive outlook on Reliance Industries, with recent reports from Jefferies, JP Morgan, CLSA and UBS highlighting several key factors driving their bullish stance and setting optimistic price targets. The positive sentiment is largely attributed to the strong performance of its consumer-facing businesses, improving margins, and a focus on new growth areas.
All three brokerages noted the positive trajectory of Reliance's digital and retail ventures. The annual report for Reliance Jio Infocomm revealed a significant increase in free cash flow, fueled by a 15% year-on-year rise in EBITDA and a moderation in capital expenditure. CLSA pointed out that the company's enterprise business is gaining positive momentum, with external revenue for Jio Platforms tripling year-on-year to Rs 23.8 billion. The brokerage also highlighted the company’s focus on accelerating home broadband connections through AirFiber.
Jefferies noted that Jio's positive free cash flow, along with a more than fivefold jump in third-party revenues for Jio Platforms, were key positives from the annual report. The firm also expects a modest decline in consolidated capex in FY26 as new petchem and energy transition investments pick up.
“We expect RIL to perform well in the coming 12-18 months as the group's earnings transformation of the last 5 years opens a path towards value unlocking,” says UBS as it resumes coverage of the company with a buy rating.
“We expect Jio value unlocking in 12-18 months as it reaches "maturity" with mid-teens growth and growing cash flows. Retail growth should improve to "teens" as restructuring of B2B comes to a close and store expansion of the past 24 months shows results. We also expect the new energy to start contributing EBITDA from FY27e with 10GW of Solar PV and 15GWh of Battery capacity by then,” says UBS.
J.P. Morgan maintains its "Overweight" rating, arguing that despite the stock's year-to-date outperformance, its relative valuations remain attractive. The brokerage believes that the implied holding company discount on its Jio and Retail businesses is still elevated. Potential drivers for the stock include improved O2C (Oil to Chemicals) margins, a likely increase in telecom tariffs, and restored high-double-digit growth in the retail segment.
Jefferies also sees a positive outlook for the company's other segments, with a focus on improving growth and FMCG (Fast-Moving Consumer Goods) in Retail and renewable communication in the O2C business.
Brokerage Price Targets: (Closing price on 25th August 2025: Rs 1,412)
J.P. Morgan has an "Overweight" rating with a price target of Rs 1,695.
Jefferies has a "Buy" rating with a price target of Rs 1,670.
CLSA has an "Outperform" rating with a 12-month price target of Rs 1,650.
UBS has a ‘Buy’ rating with price target of Rs 1,750