India’s refining sector is a critical component of its energy infrastructure, with a capacity of over 249 million metric tons annually. By 2025, investments exceeding $87 billion aim to expand petrochemical intensity and refining capacity, including projects like the $70 billion West Coast Refinery. This growth supports India’s rising energy demand.
Price Movement
With a market capitalization of Rs 17.32 lakh crore, the shares of Reliance Industries Ltd closed at Rs 1,280.00 per share, increasing around 0.13 percent as compared to a previous closing price of Rs 1,278.40 apiece.
Brokerage Target
Goldman Sachs, one of the well-known brokerages globally, gave a ‘Buy’ call on the Refineries stock with a target price of Rs 1,640 apiece, indicating a potential upside of 28 percent from Friday’s closing price of Rs 1,280 per share.
Brokerage Rational
Goldman Sachs anticipates Reliance’s Q4 core EBITDA to remain largely stable sequentially. However, investor attention will likely be on retail growth trends. The brokerage projects a 6.5% year-on-year rise in retail (excluding connectivity revenue) in Q4, following an 8.5% decline in Q2 and a 5.7% increase in Q3..
Additionally, Goldman Sachs estimates a 4 percent quarter-on-quarter growth in Jio’s revenue, approximately 200 basis points higher than Bharti Airtel’s expected growth.
In the upcoming quarterly update, the brokerage anticipates guidance on RIL’s retail growth outlook for FY26 and progress in its new energy ventures. RIL previously projected solar module production by end-CY24 and 30GWh battery production in the second half of CY25
Chris Wood of Jefferies will raise Reliance Industries’ allocation in his India long-only portfolio by 2 percentage points. This increase will be funded by reducing HDFC Bank and State Bank of India’s weightage by 1 percentage point each.
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Hydrocarbons – Exploration & Production
Reliance Industries’ Hydrocarbons – Exploration & Production segment reported revenue of $744 million (₹6,370 crores), up 2.5% QoQ. EBITDA stood at ₹5,565 crores with 87.4% margins. CBM production rose due to multilateral wells, while KGD6 production remained steady with improved price realizations.
New Product Developments
Reliance announced JioCloudPC, a low-cost, pay-as-you-go personal computing service, alongside the launch of AI Cloud, enhancing storage with AI-powered features. The company also expanded its consumer brands, with FMCG revenues surpassing Rs 8,000 crores, highlighting its growing presence in the technology and consumer goods sectors.
Challenges and Outlook
Management remains optimistic about sustained growth across segments, driven by operational streamlining and productivity improvements. Strong domestic demand, particularly in consumer and energy sectors, supports this outlook. While global margin trends remain mixed, the company emphasizes resilience and adaptability to navigate challenges and maintain steady performance.
Company profile
Reliance Industries Limited is an India-based company, which is engaged in the activities of hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewables (solar and hydrogen), retail and digital Services.
Written by Abhishek Singh
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