Strong Quarterly Performance Drives RIL Share Surge
Reliance Industries Ltd. (RIL) saw a significant surge in its stock price following the release of its Q4 FY25 results, which exceeded analysts’ expectations. On April 28, the company’s shares jumped by 3.9 percent in early trading, marking its biggest gain since January 17, 2025. RIL’s net profit attributable to shareholders grew by 2.4 percent to Rs 19,407 crore, driven by lower depreciation, interest, and tax rates. Revenue for the quarter ended March 31 rose by 8.8 percent year-on-year to Rs 2.88 lakh crore, fueled by growth in its digital services, retail, and oil-to-chemicals (O2C) businesses.
Highlights:
RIL shares surge 3.9% following strong quarterly results.
Net profit grows by 2.4%, reaching Rs 19,407 crore.
Revenue rises 8.8% YoY to Rs 2.88 lakh crore, driven by key business segments.
Brokerages Lift Target Prices After Robust Q4 Earnings
Following the better-than-expected Q4 earnings, several brokerages have raised their target prices for Reliance Industries, reflecting the company’s strong performance across its core business segments. The O2C segment, in particular, posted higher-than-anticipated results, prompting analysts to adjust their forecasts. The positive sentiment around RIL’s performance has further reinforced its position as a key player in India’s corporate landscape.
Highlights:
Brokerages raise target prices for RIL after Q4 results.
Higher-than-expected performance in O2C segment boosts forecasts.
Positive sentiment around RIL’s growth trajectory.
Reliance Jio: The Growth Driver for RIL
A significant contributor to the market optimism surrounding Reliance Industries is the continued growth of its telecommunications arm, Reliance Jio. Motilal Oswal, a domestic brokerage, highlighted that Jio is expected to be the biggest growth driver for RIL over FY25-27, with annual EBITDA growth of 21 percent. This growth is expected to be fueled by another tariff hike, market share gains in wireless, and expansion in the homes and enterprise segments. The potential for Jio’s growth has been a major factor in driving the positive sentiment around Reliance’s stock.
Highlights:
Reliance Jio expected to be the biggest growth driver for RIL.
21% annual EBITDA growth forecasted for Jio over FY25-27.
Growth driven by tariff hikes and market share gains.
Nomura and JPMorgan Bullish on RIL’s Future Growth
International brokerages, including Japan’s Nomura Holdings, have identified several key triggers that will propel RIL’s growth in the near term. Nomura noted that the scale-up of RIL’s new energy business, upcoming tariff hikes for Jio, and the potential IPO/listing of Jio could unlock significant value for the company. Additionally, with the completion of operational streamlining at Reliance Retail, the retail business is expected to sustain healthy growth. Similarly, JPMorgan emphasized the sharp 16 percent YoY growth in Reliance Retail’s sales during Q4, which positions the retail arm for continued expansion.
Highlights:
Nomura identifies new energy, Jio tariff hikes, and Jio IPO as key growth drivers.
JPMorgan highlights strong growth in Reliance Retail.
Retail business expected to sustain strong growth trajectory.
Nuvama Sees Significant Potential in RIL’s New Energy Segment
On the new energy front, Nuvama Institutional Equities sees significant potential for Reliance Industries. The brokerage estimates that RIL’s profit after tax (PAT) share from the new energy segment could rise to 12 percent by FY2030. The company’s management has expressed expectations that by FY2031, the new energy segment will match the O2C segment in terms of profitability. Nuvama also predicts that new energy will contribute over 50 percent of the current additions to RIL’s consolidated net profit, as the clean technology sector gains higher valuations.
Highlights:
Nuvama estimates new energy segment PAT share could rise to 12% by FY2030.
New energy expected to contribute over 50% to consolidated net profit growth.
Clean technology sector driving higher valuations for RIL.
Motilal Oswal Projects Strong Future Earnings Growth
Motilal Oswal has projected a compound annual growth rate (CAGR) of 13-14 percent in consolidated EBITDA and PAT for Reliance Industries over FY25-27. The brokerage expects a strong double-digit EBITDA CAGR in both RJio and Reliance Retail. After a subdued FY25, Motilal Oswal anticipates a recovery in earnings for the O2C segment, driven by improvements in refining margins. This optimistic outlook on RIL’s future performance has been a key factor behind the recent uptick in share prices.
Highlights:
Motilal Oswal projects 13-14% CAGR in consolidated EBITDA and PAT over FY25-27.
Double-digit growth expected in RJio and Retail segments.
O2C segment earnings expected to recover in FY26.
