Update shared on 03 Nov 2025
Fair value Increased 1.27%Analysts have raised their price target for Reliance Industries from ₹1,664 to ₹1,686. They cite improved revenue growth projections and stronger profit margins in their updated outlook.
Analyst Commentary
Market sentiment around Reliance Industries has been shaped by a combination of improving fundamentals and underlying industry challenges. The latest price target increase highlights shifting analyst expectations for the company's future performance.
Bullish Takeaways- Bullish analysts highlight robust revenue growth prospects, with expectations for continued expansion across Reliance's core business segments.
- Profit margins are expected to strengthen as a result of operating efficiencies and strategic investments in high-growth areas, supporting an upward valuation revision.
- Analysts believe the company remains well-positioned to capitalize on favorable industry trends, particularly in digital and consumer verticals, to drive long-term shareholder value.
- Recent forecasts suggest execution on ongoing projects is proceeding ahead of schedule, which increases confidence in management's ability to deliver stated growth objectives.
- Some bearish analysts express caution over potential headwinds in certain segments, such as softer industrial or cyclical demand, which could weigh on overall performance.
- Concerns persist about oversupply in parts of the sector, potentially pressuring pricing power and affecting short-term profitability.
- There is ongoing scrutiny of execution risks related to large-scale expansion initiatives and whether these projects can achieve planned return thresholds.
What's in the News
- Reliance Industries will hold a Board Meeting on October 17, 2025, to consider and approve the unaudited financial results for the quarter and half year ended September 30, 2025, along with the Independent Auditor's Review Report (Key Developments).
- "Reliance Intelligence Limited" has been incorporated as a wholly owned subsidiary. The Certificate of Incorporation was received from the Ministry of Corporate Affairs on September 9, 2025 (Key Developments).
- Reliance Industries announced an expanded strategic partnership with Google Cloud to deliver advanced AI infrastructure in India, featuring new cloud facilities powered by green energy and connected via Jio's network (Key Developments).
- A joint venture between Reliance Industries and Meta will build and scale enterprise AI solutions in India and select international markets. The initial investment amounts to INR 855 million, with deployment of Meta's Llama models (Key Developments).
- Reliance NeuComm LLC, a step-down wholly owned subsidiary, has completed voluntary winding up and ceased to be a subsidiary. It contributed no turnover or net worth to the group's 2024-25 results (Key Developments).
Valuation Changes
- Fair Value Estimate has increased from ₹1,664.47 to ₹1,685.61. This reflects a modest upward revision.
- Discount Rate has edged up marginally from 12.93% to 12.94%, which indicates a slightly higher required return.
- Revenue Growth projections have risen slightly, moving from 5.86% to 6.27%.
- Net Profit Margin forecast has improved from 8.67% to 8.83%, suggesting greater profitability expectations.
- Future P/E Ratio has decreased slightly from 31.22x to 31.04x. This implies a small adjustment in valuation relative to future earnings.
Disclaimer
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