Synopsis: In this article, we will dive into the details of the potential triggers that may significantly lead to a sharp rally of 12 percent in the share of Reliance Industries. These triggers are outlined by the global brokerage house JP Morgan and we will dive much deeper into it.
With a market capitalisation of Rs 21,20,131 crore, the shares of Reliance Industries Ltd reached a day’s high of Rs 1580.90 per share, up 1 percent from its previous day’s closing price of Rs 1563.55 per share. Over the past five years, the stock has delivered a return of 63 percent, underperforming NIFTY 50’s return of 102 percent.
Analyst Comments
Leading global brokerage house, JP Morgan, has maintained its “Overweight” rating on the stock and has fixed a target price of Rs 1,727 per share, signalling an upside of 10.4 percent from its previous day’s closing price.
JPMorgan cited that Reliance Industries still has good upside potential, even after the stock has already risen 27 percent this year, beating the Nifty 50’s return of only 10 percent. The brokerage says the stock is still reasonably priced ( trading at a 15 percent holding company discount to their peers), especially compared to other consumer and telecom players like Avenue Supermarts and Bharti Airtel. It also expects RIL’s profits to improve now that the weak phase in its refining and petrochemicals business is behind it.
Looking ahead to 2026, JPMorgan has identified three big triggers for future growth: the planned IPO of Jio, the rollout of Reliance’s new-energy investments, and steady expansion in its retail business. These, according to the brokerage, can unlock more value for shareholders.
JPMorgan also sees refining margins staying strong, which could lead to earnings upgrades. On top of that, possible telecom tariff hikes or faster profit contribution from retail can further boost the stock. In short, the brokerage expects Reliance to deliver better growth while still trading at attractive valuations.
Q2 Highlights
Reliance Industries reported a core revenue of Rs 2,54,623 crore in Q2 FY26, a growth of 10 percent as compared to Rs 2,31,535 crore in Q2 FY25. Additionally, on a quarter-on-quarter basis, it grew by 4.5 percent from Rs 2,43,632 crore.
Regarding its profitability, it reported a net profit of Rs 22,092 crore in Q2 FY26, a growth of 14 percent as compared to Rs 19,323 crore in Q2 FY25. However, on a quarter-on-quarter basis, it recorded a decline of 28 percent from Rs 30,783 crore.
Reliance Industries has posted a robust performance in its major businesses in the second quarter. Jio reported over 50 crore subscribers, 23.4 croreusers of 5G, and 18 percent of EBITDA growth. Reliance Retail experienced an 18 percent year-on-year increase in gross revenue and a strong quick-commerce expansion.
The FMCG sector has increased its revenue to Rs 5,300 crore, while the Media business has been strengthened with 40 crore MAUs and 71 percent QoQ EBITDA growth. The Energy business has reported a 21 percent EBITDA increase, which is led by the refining margin improvement and strong Jio-bp traction. The New Energy segment is going as scheduled with the solar PV and battery giga-factory projects.
Thus, it has to be seen if Reliance Industries can meet the street’s expectations favoured by its notable development in the new energy sectors, quick commerce race and more to breach its Rs 1,700 per share mark. An investor is advised to note key developments before making any decisions.
Written by Satyajeet Mukherjee
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