Reliance Industries Share Target: Jefferies gives the stock a buy call, check the upside

Synopsis: Reliance Industries has a “Buy” rating from Jefferies with a target price of Rs 1,830, representing an upside of 25%. Jefferies expects it will achieve a 13% growth in EBITDA during FY27 as a result of planned IPOs for Jio, an estimated 22% increase in Jio’s revenues.

Global brokerage Jefferies has reiterated its ‘Buy’ rating on India’s largest company with a target price of Rs. 1,830, which is 25% above the current levels. The firm expects 13% EBITDA growth in FY27E, driven primarily by strong momentum in Jio and Retail. According to Jefferies, multiple business verticals are approaching key inflection points, which could unlock further value over the medium term.

With a market capitalisation of Rs. 19,73,644 cr, the shares of Reliance Industries Ltd closed at Rs. 1,458 per share, up 0.50 % from its previous close of Rs. 1,451 per share.

Key Catalysts to Watch in FY27

Jefferies highlights several near-to medium-term triggers for Reliance. These include a potential tariff hike and listing of Jio by mid-CY26, along with a recovery in retail growth to mid-teens levels. Additionally, the brokerage sees value discovery opportunities in FMCG, new energy, and data centre businesses during FY27–FY28, which could further support valuation re-rating.

Reliance Retail is expected to deliver 16% year-on-year revenue growth in FY27, supported by store expansion and digital integration. However, margins may see a slight dip due to a higher grocery mix and continued scale-up of JioMart Quick Commerce. Despite margin pressures, Jefferies remains constructive on the long-term profitability of the retail segment.

O2C Segment: Refining and Petchem Poised for Recovery

Jefferies is predicting 5% year-over-year EBITDA growth for the Refining (O2C) segment through FY27, based on predictable refinery operations, with minimal improvements to petrochemical margins. Jefferies stated that, through FY27, stable refinery operating Rates and continued disruptions of Russian Refined Product (RRP) supply should maintain bulk refining margin levels.

Jio Platforms: IPO-Ready with Strong Earnings Visibility

Jio Platforms appears ready for an Initial Public Offering (IPO), with revenue growth forecasts of 22% year-over-year growth and margin expansion of approximately 280 basis points through the use of Operating Leverage, resulting in an EBITDA Growth rate of 28 % year-over-year. As well, Tariff Hikes remain the largest chance of further accelerating growth and generating additional earnings potential.

FMCG: Scaling Up to Industry-Leading Size

Reliance’s FMCG business is emerging as a major growth engine. As of Q2 FY26, the segment has achieved a US$2.4 billion annualised revenue run rate across staples, beverages, beauty, and home care. This scale already surpasses several established FMCG players such as Tata Consumer, GCPL, Britannia, and Dabur, positioning Reliance as a formidable force in the sector by 2026.

Reliance Industries Limited is one of India’s largest and most diversified conglomerates, with businesses spanning energy, petrochemicals, refining, retail, and telecommunications. Known for its flagship Reliance Jio and Reliance Retail, the company drives innovation, digital transformation, and economic growth while maintaining a strong global presence. 

Sales of the company increased to Rs. 2,54,623 cr in Q2FY26 from Rs. 2,43,632 cr in Q1FY26. Operating profit also rose from Rs. 42,905 cr to Rs. 45,885 cr. Net profit declined from Rs. 30,783 cr to Rs. 22,092 cr over the same period. The company’s ROCE is at 9.69%, ROE at 8.40%, and has  a low debt-to-equity of 0.43

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