Reliance Industries Shares Scale New Heights with Strong Brokerage Backing
Shares of Reliance Industries Limited (RIL) witnessed significant upward momentum on Friday, climbing to a fresh 52-week high of Rs 1,580.90 on the Bombay Stock Exchange (BSE). This impressive surge came following global brokerage firm Jefferies reiterating its confident "Buy" rating on the stock with an ambitious price target of Rs 1,785, suggesting nearly 14% potential upside from current levels.
The energy-to-telecom conglomerate's stock had previously closed at Rs 1,564 in the prior trading session. During early market hours on Friday, RIL shares demonstrated strong performance, trading 0.7% higher at Rs 1,575.4, thereby extending their remarkable year-to-date gains to 28.4%.
Triple Engine Growth Drives Optimism
Jefferies highlighted that all three core business verticals of Reliance Industries - digital services, energy, and retail - are delivering robust double-digit growth in the current fiscal year FY26. The brokerage emphasized that despite the recent rally, the stock continues to trade below its long-term EV/EBITDA average, presenting investors with a favorable risk-reward proposition.
The analysis pointed to multiple positive catalysts supporting Reliance's growth trajectory, including strong festive demand tailwinds, expanding fast-moving consumer goods (FMCG) operations, and firm refining margins that continue to bolster profitability.
Retail and Digital Services Show Explosive Growth
Jefferies expects Reliance Retail to post another quarter of double-digit revenue growth in Q3 FY26, driven by robust festival season consumption patterns and the rapid expansion of JioMart's dark store network across metropolitan cities. According to the Economic Times report cited by Jefferies, the rollout of approximately 600 dark stores as of Q2 FY26 has resulted in a staggering 200% surge in daily orders, significantly boosting revenue momentum.
Perhaps even more impressive is the explosive growth of Reliance's FMCG business, which has achieved 100% year-on-year growth for six consecutive quarters. The segment reached an annualized revenue run-rate of US $2.4 billion in Q2 FY26, making it larger than several established listed players including Tata Consumer, GCPL, Britannia and Dabur, though still trailing HUL and Nestlé. Jefferies anticipates potential value unlocking for this segment between calendar year 2026 and fiscal years 2027-28.
Energy Business Maintains Strong Position
On the refining front, Jefferies expects profitability to remain robust during the second half of FY26, citing tight global supply conditions due to disruptions in Russian refined product exports. The brokerage also noted firm margins for European diesel and US gasoline, providing additional support to Reliance's energy business profitability.
The comprehensive analysis from Jefferies presents a compelling case for Reliance Industries' continued growth across all business segments, with the brokerage's Rs 1,785 price target representing significant confidence in the company's ability to sustain its current momentum and unlock further value for shareholders in the coming years.
