Business

IIE DIGITAL DESK  :  Brokerages are expressing growing confidence in Reliance Industries Ltd. (RIL), buoyed by strategic momentum across its telecom, consumer goods, and clean energy arms, according to a Moneycontrol update dated August 28, 2025 .

Macquarie has highlighted Reliance Jio's decision to focus on value over sheer subscriber growth as a key catalyst for robust EBITDA expansion. The shift toward higher average revenue per user (ARPU) and improved operating leverage positions Jio to potentially outperform its peer Bharti Airtel. Reflecting this, Macquarie has raised its target price for RIL to ₹1,650 and maintained an 'outperform' rating .

Optimism surrounding RIL's retail-to-FMCG businesses—particularly Reliance Consumer Products Ltd (RCPL)—is mounting as analysts anticipate an acceleration in consumption-driven growth .  RIL’s diversified portfolio, with fresh strategies and investment in consumer products, is being viewed as a pillar of sustainable growth.

On the new-energy front, Nuvama, Emkay, and others have reinforced their bullish stance. Nuvama identifies RIL's new-energy segment as a multi-decade growth engine, estimating that a fully integrated 10GW polysilicon-to-module facility by end-FY26 could contribute around 6% to consolidated PAT. Emkay projects that the new energy ecosystem, built through partnerships, may achieve self-sufficiency within a few years. Prabhudas Lilladher has upgraded the stock from 'Hold' to 'Accumulate', assigning a standalone valuation of ₹111 for the energy vertical .

The upcoming Annual General Meeting (AGM), scheduled for August 29, is seen as a pivotal moment. Market watchers are hoping for clarity on several fronts: the much-anticipated Jio IPO roadmap, RCPL’s FMCG expansion strategy, and clean-energy project updates. These developments could act as a fresh re-rating trigger for RIL’s stock, especially as its price has slipped nearly 7% since Q1 earnings despite strong broker endorsements .

Broader market sentiment also reflects this bullish sentiment. On August 19, the Indian stock benchmarks opened higher with Reliance at the forefront, underscoring investor enthusiasm for RIL's multiple growth levers, including its expansion into healthy beverages via a joint venture with Natureedge Beverages .

Supporting this positive sentiment, Jefferies, after analyzing FY25's annual report, reaffirmed its 'Buy' rating with a ₹1,670 target. The firm underscored free cash flow strength, capital expenditure dynamics, the firm’s net indebtedness, and—most notably—its strategic thrust in new energy, retail expansion and Jio upgrades .

UBS has reinitiated coverage with a 'Buy' rating and a ₹1,750 target, citing RIL's prominent role in India’s digital ecosystem and its growing footprint in the new-energy domain. JP Morgan, too, reiterated its bullish outlook, describing RIL's valuation as still attractive and supporting the company's long-term fundamentals .

Separately, Reuters reported on RIL’s Q4 FY25 earnings: despite headwinds in the oil-to-chemicals segment due to weaker refining margins, the digital and retail businesses posted strong growth. Digital services—including Jio—saw EBITDA surge 18%, with Jio Platforms delivering a 25.7% jump in profits supported by tariff hikes and rising ARPU. Retail EBITDA climbed 14%, aided by operational efficiencies and an improved product mix. Simultaneously, RIL commissioned a gigawatt-scale solar PV module line as part of a larger 10 GW factory plan in Jamnagar to reinforce its renewable energy ambitions .

Adding to the clean-energy narrative, Reuters also noted that RIL’s expansion of its gigafactory footprint and green infrastructure in Gujarat—spanning 44 million square feet—is drawing significant analyst attention. Firms like Nomura and Jefferies see the new-energy venture potentially reaching parity with the oil-to-chemicals business in profitability over the next five to seven years, despite near-term challenges such as solar overcapacity and global trade policy risks .

Brokerages continue to back Reliance Industries with conviction, pointing to its diversified growth strategy across telecom, consumer products, and new energy. With strong earnings in emerging segments and promising prospects on the horizon, all eyes are now on the AGM for directional clarity that could reshape investor sentiment.s