Synopsis: Goldman Sachs has maintained a Buy rating on Reliance Industries with a target of ₹1,910, implying 51% upside. It expects strong refining and petrochemical margins, continued retail-led growth, and expansion to drive long-term value. Upstream weakness is largely priced in, while EPS cuts reflect accounting adjustments, not structural concerns.
The shares of a Large-cap company, specialised in energy (petroleum refining, oil and gas exploration), petrochemicals, telecommunications (Jio), retail (Reliance Retail), and mass media, are in focus following a ‘Buy’ rating from Goldman Sachs, which suggests an upside potential of 51 percent.
With a market capitalisation of Rs. 17,49,418.94 crores in the day’s trade, the shares of Reliance Industries Ltd rose by 2.7 percent, reaching a high of Rs. 1,297.45 per share compared to its previous closing price of Rs. 1,262.60 per share.
What Happened
Reliance Industries Ltd, which is engaged exclusively in energy (petroleum refining, oil and gas exploration), petrochemicals, telecommunications (Jio), retail (Reliance Retail), and mass media, is in the spotlight following a Buy rating from the global Brokerage firm Goldman Sachs, with a target of Rs. 1,910 and an upside potential of 51 percent from the previous close price of Rs. 1,262.60.
Reason for the Target
Strong long-term refining & petrochemicals support despite near-term volatility
Refining margins (crack spreads) are expected to remain relatively strong over the medium term, supporting core O2C earnings. Although near-term headwinds like crude premium and windfall taxes may weigh on profitability, the structural strength in global fuel demand and refinery integration helps stabilise cash flows and supports valuation resilience.
Retail business remains a structural growth driver
Even though earnings estimates are slightly reduced due to margin pressure from investments in JioMart and expansion costs, the retail segment remains a key long-term growth engine. Scale expansion, digital integration, and omnichannel strategy continue to position Reliance as India’s dominant organised retail player, with improving operating leverage over time.
Gas and upstream (E&P) earnings pressure is largely priced in
Lower earnings from the oil and gas segment reflect weaker KG-D6 output assumptions and higher operating costs. However, much of this decline is offset by production normalisation expectations and market adjustments. The market already factors in volatility in upstream earnings, limiting further downside risk from this segment.
Earnings revisions are driven by non-core and accounting adjustments
The downgrade in FY27E/FY28E EPS is largely due to mark-to-market adjustments in non-operating income and expenses based on FY26 results. These are not structural business impairments. Core operating performance remains relatively stable, meaning earnings volatility is more accounting-driven than fundamentally deterioration-led.
Recent News
Reliance Industries Limited (RIL) and Meta Platforms, Inc. have entered into a partnership to develop an AI-enabled data centre in Jamnagar, Gujarat. The facility will have an initial capacity of 168 MW, to be delivered within two years, with potential for future scaling. Meta will lease capacity from the data centre, which is expected to support its global infrastructure and AI compute requirements. This marks Meta’s first built-to-suit data centre capacity in India and strengthens its long-term strategic relationship with Reliance.
Under the agreement, RIL will act as the end-to-end service provider, covering design, construction, utilities management, renewable power supply, network connectivity, and ongoing operations. The project will leverage Gujarat’s advantages, including renewable energy access, desalinated seawater cooling, and proximity to submarine cable landing stations and Jio’s fibre network. Positioned as a sustainability-focused initiative, the data centre is aligned with India’s broader push to develop AI infrastructure as a strategic national asset.
Financials & Others
The company’s revenue rose by 12.50 percent from Rs. 261,388 crores in March 2025 to Rs. 294,059 crores in March 2026. Meanwhile, Net declined from Rs. 22,611 crores to Rs. 20,589 crores in the same period.
The company shows moderate efficiency in using its capital, with a ROCE of 10.3%, indicating average returns from total capital employed. This suggests operations are stable but not highly efficient compared to stronger performers in the market.
The ROE of 8.91% reflects modest returns for shareholders, showing limited but steady profitability. With a debt-to-equity ratio of 0.45, the company maintains a relatively low dependence on debt, indicating a stable and less risky financial structure.
Reliance Industries Limited is one of India’s largest conglomerates, headquartered in Mumbai. It was founded by Dhirubhai Ambani and operates across multiple sectors, including energy, petrochemicals, refining, oil & gas exploration, telecommunications, retail, and digital services. The company is best known globally for its massive refining complex in Jamnagar, Gujarat, which is among the largest in the world.
Currently ranked 88th, Reliance is the largest private sector company from India to be featured in Fortune’s Global 500 list of ‘World’s Largest Companies’ for 2025. The company stands 45th in the Forbes Global 2000 rankings of ‘World’s Largest Public Companies’ for 2025, the highest among Indian companies. Reliance has been recognised in Time’s list of the 100 Most Influential Companies of 2024, marking the only Indian company to have achieved this honour twice.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Trade Brains Technologies Private Limited or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
