Reliance Industries (RIL) reported sound March quarter results, with a beat on Ebitda. Among segments, Retail Ebitda missed estimates due to lower revenue, but it was balanced by better O2C on higher utilization and improved refining.
Jio and Upstream numbers were in line, with analysts increasing FY25 and FY26 earnings estimates and raising target prices on RIL by up to 10% post-quarterly earnings.
Emkay Global raised FY25-26E earnings by 2-5% each and SOTP-based target price by 8% to Rs 3,200/share on the back of higher profitability in Jio (due to ARPUs) and roll-over to Mar-26E. Kotak expects refining margins to recover going ahead, while seeing a slower recovery in petchem. It maintains an ‘ADD’ rating with a revised fair value of Rs 3,200.
Antique Stock Broking anticipates an improvement in the petrochemical cycle in FY26. It sees continued growth in the telecom subscriber base along with a sharp improvement in ARPU on account of tariff hikes, and growth in retail to be key earnings growth drivers for RIL. It maintains a ‘BUY’ rating with a revised SoTP target of Rs 3,227.
UBS, Jefferies, BofA Securities, Bernstein, and Morgan Stanley have target prices of Rs 3,420, Rs 3,380, Rs 3,250, Rs 3,160, and Rs 3,046, respectively.
Motilal Oswal ascribed an equity valuation of Rs 810 per share to RJio, Rs 1,593 per share to Reliance Retail, and Rs 37 per share towards the new energy business. It suggested a ‘BUY’ on RIL with a target price of Rs 3,245.
Nuvama, citing RIL’s New Energy rollout as the next leg of growth, raised FY26E Ebitda by 8% and lifted its target by 10% to Rs 3,500.
