Analysts have raised their price target for Reliance Industries from ₹1,640 to ₹1,664. They cite expectations of stronger profit margins and a lower discount rate, even though revenue growth forecasts are more modest.
Analyst Commentary
Analyst sentiment on Reliance Industries remains largely positive, reflecting renewed confidence in the company’s financial outlook and growth trajectory. The following summarizes prevailing perspectives from the Street:
Bullish Takeaways- Bullish analysts highlight expectations of improved profit margins, attributing this to operational efficiencies and a favorable cost environment.
- There is increased confidence in Reliance Industries’ ability to execute on its broader strategic initiatives, which is anticipated to support more resilient earnings growth.
- Reduced discount rates have been cited as a key driver for higher valuations, signaling lower perceived business risk in the current market environment.
- The transition to new business models and continued investment in emerging segments are viewed as long-term growth catalysts, which could strengthen the company’s market leadership.
- Bearish analysts are cautious about modest near-term revenue growth, which could limit the pace of upward valuation revisions.
- Concerns remain regarding persistent industry headwinds and uncertain global economic conditions, which may impact some of Reliance Industries’ verticals.
- Execution risks associated with expanding into new businesses or markets might weigh on profitability if not managed effectively.
- There is ongoing scrutiny regarding whether margin improvements are sustainable, especially given fluctuating input costs and competitive pressures.
What's in the News
- Reliance Industries and Meta have entered a joint venture to build and scale enterprise artificial intelligence solutions for India and select global markets. The two companies have made an initial combined investment of INR 855 million (USD 100 million).
- Reliance Industries has expanded its strategic partnership with Google Cloud to develop AI infrastructure powered by green energy and Jio's digital network. This collaboration aims to bring advanced AI-driven services to enterprises and public sector organizations.
- The company received official incorporation of "Reliance Intelligence Limited" as a wholly owned subsidiary on September 9, 2025.
- Reliance Industries, along with ONGC and BP Exploration, signed a Joint Operating Agreement for offshore hydrocarbon exploration in the Saurashtra Basin. This agreement further advances India's energy security goals.
- The voluntary winding up and termination of Reliance NeuComm LLC, a non-operating, step-down subsidiary of the company, was completed in August 2025.
Valuation Changes
- Consensus Analyst Price Target has risen slightly from ₹1,640 to ₹1,664.
- Discount Rate has fallen modestly from 13.10% to 12.93%, which indicates lower perceived risk.
- Revenue Growth projections have decreased from 6.67% to 5.86%.
- Net Profit Margin has improved marginally, moving from 8.52% to 8.67%.
- Future P/E multiples have edged down from 31.78x to 31.22x.
Disclaimer
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