Reliance Shares Extend Rally as Q4 Magic and Jio, New Energy Prospects Fuel Investor Optimism

Reliance Industries seems to have recaptured investors confidence after posting a stronger-than-expected earnings for the March quarter. The stock has soared over 7% this week on the National Stock Exchange, and is currently trading at the highest level since October 2024 .

Shares of the company extended its gains for the second day on Tuesday. The stock today rose as much as 2% after it closed over 5% higher on Monday. Although earlier there were whispers of concerns about slowing telecom growth and heavy capex, market participants are betting higher on the company's growth on the back of an expected price hike and listing of Jio and scaling up of RIL's new energy business. 

The conglomerate posted an over 2% growth in its consolidated net profit for the March quarter. The company also became the first in India to register a net worth of over Rs 10 lakh crore, and it currently holds the 21st position globally on net worth basis, according to Bloomberg data cited by various media reports.

The Mukesh Ambani-led company’s net for the quarter under review was boosted by a 10% on-year rise in the revenue for the period. Higher growth in RIL’s oil-to-chemicals segment on the back of higher volumes and domestic product placement beefed up the overall figure of the company.

Among segments, Reliance Jio is expected to be the biggest growth driver for the company, Motilal Oswal said in a report, adding that it will likely post a 21% compound annual growth rate in EBITDA over FY25-27. This strong growth in the company’s telecommunication business is expected to be driven by one more tariff hike, market share gains in wireless, and ramp-up of the homes and enterprise business, the brokerage firm said.

Growth in Jio Platform’s consolidated revenue and net for the March quarter came in at 18% and 26%, respectively, according to the company’s press release. On the other hand, the company is upgrading its retail stores. It has come up with Trends 3.0, which is an upgraded version of our Trends store, and is further scaling up the same, the management said in a post-earnings call. It also plans to tap overseas market in the beverage space as it is looking to set up distribution of consumer beverage brands such as Campa, among others in select markets. 

The conglomerate’s retail business might benefit due to the recent rationalisation drive of unprofitable stores and B2B bsuiness, Motilal Oswal said. This business, along with Reliance Jio will likely grow drive a 13-14% compound annual growth rate in consolidated EBITDA and net profit over FY25-27, the brokerage said.

Motilal Oswal retained its ‘buy’ rating on the stock with a marginal increase in target price to Rs 1,515. The brokerage also expects the company’s oil-to-chemicals business to show some recovery in earnings after FY25.  Other brokerage houses also joined the chorus of confidence by hiking their target prices

Nomura, which has a ‘buy’ rating on the stock raised its target price to Rs 1,650, citing three triggers—scaling up of new energy business, upcoming tariff hikes for Jio and potential listing of Jio. Nuvama, on the other hand, has the target price of Rs 1,708 on Reliance Industries, with a ‘buy’ recommendation.

The stock is currently 13% lower than its 52-week high mark and is trading over 25% higher than its 52-week low price.