Synopsis:
Reliance Industries Limited shares dropped to 2 percent despite Mukesh Ambani announcing Jio’s IPO in early 2026. Investors remained cautious after post-AGM disappointments, even though analysts remain optimistic about the future growth of the company.
The shares of one of India’s largest private companies operating in sectors such as energy, petrochemicals, telecommunications, retail, and renewable energy, dropped by 2.23 percent after Mukesh Ambani’s address at the Annual General Meeting.
With a market capitalization of Rs.18,36,424 crore, the shares of Reliance Industries Limited closed at 1,357, down by 2.21 percent from the previous day’s closing price of Rs.1,387.
Mukesh Ambani’s Announcements
On 29th August 2025, Muskesh Ambani addressed 44 lakh shareholders at the company’s AGM, announcing that the highly anticipated Reliance Jio IPO will take place in the first half of 2026.
According to BOFA, Jio is valued at $115Billion based on its projected cash flow, while estimating Bharat Airtel’s India cellular business to be worth $124 billion, and the IPO issue size is expected to be Rs. 52,200 Crores as per a Bloomberg report.
In the meeting, Mukesh Ambani announced that the company is on par with the global players, against his comments in 2019 that Reliance Jio and Reliance Retail would be listed within five years.
According to analysts, separate listings of Jio and Retail could lead to higher valuations, but they may not significantly benefit RIL shareholders. Meanwhile, new SEBI rules now allow companies with a post-IPO market cap above Rs.5 lakh crore to offer only 2.5% of their equity, instead of 5%. For Jio, it is valued over $120 billion said by Citi, which could help ease selling pressure during listing and reduce the risk for holding company Reliance Industries..
Reliance Industries is focusing on artificial intelligence with its own JioBrain platform, is partnering with Google to bring cloud to India, and with Meta to build sovereign, enterprise-ready AI platforms for businesses and government, and will share updates on JioAirFiber, 5G services, and digital platforms like Jio Hotstar. The company has also launched a large-scale solar panel facility and is expanding its clean energy initiatives.
Brokerages are positive about the outcomes of the AGM. Jefferies has given a Buy rating with a target of Rs.1,670, indicating strong growth in Jio, Retail, and Energy. JP Morgan has given an Overweight rating with a target of Rs.1,695 , while UBS has given a target of Rs.1,550, expecting growth from Retail and Jio. Bank of America also has given a Buy rating with a target of Rs.1,660, followed by Macquarie with a target of Rs.1,580.
Reliance Industries’ retail business is also in focus. Last year, the company aimed to double Jio and Retail revenue and profits by 2030. Investors now look for updates on quick commerce, the Shein partnership, FMCG growth, and Jio’s consumer services performance.
Revenue from operations rose from Rs.2,31,784 crores in Q1FY25 to Rs.2,43,632 crores in Q1FY26. Net profit rose from Rs.17,445 crores in Q1FY25 to Rs.30,783 crores in Q1FY26. The ROE is at 8.40 percent, and the ROCE is 9.69 percent.
Reliance Industries is India’s largest private company. It specializes in major manufacturing and service businesses in oil and gas exploration, petroleum refining, petrochemicals, retail, telecom, digital services, financial services, and SEZ development.
Written by Jhanavi Sivakumar
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