Reliance Industries (RELIANCE IN) – Company Update – Poised for multi-engine growth – BUY
Published on 18 Feb 2026
Reliance Industries’ (RELIANCE) O2C segment is expected to deliver steady performance, supported by healthy diesel cracks amid resilient transportation fuel demand. In the near term, petchem profitability is likely to remain under pressure, though long-term fundamentals should improve with global capacity rationalization. RJIL fcontinues to be a key value-unlocking lever, backed by improving operational performance and a strong growth outlook. Rising 5G and FWA subscriber additions, along with deep penetration across India, should further support earnings momentum. In the retail segment, in absence of a perfect peer, we compared RRVL with Titan and DMart. RRVL’s revenue and EBITDA/sqft trail Titan and DMart due to its higher exposure to low-margin grocery formats; however, the outlook remains constructive, supported by potential mix improvement from higher margin jewelry and fashion categories. The stock is trading at consol EV/EBITDA of 11.1x/9.9x of FY27E/FY28E. In the absence of quantitative disclosures, we assign a value of Rs111/share to the New Energy segment, valuing it at 2x the earlier announced capex of Rs750bn. Maintain ‘BUY’ rating with TP of Rs1,688.
