RIL Shares Jump on Robust Q2 Performance
Shares of Reliance Industries Ltd (RIL) rose nearly 3% on Monday morning, buoyed by strong quarterly results for Q2 FY26 and positive sentiment from major brokerages.
The stock traded at ₹1,456.30, extending gains after investors reacted to higher-than-expected earnings and confidence in RIL’s diversified growth strategy.
Brokerages including Nomura, Morgan Stanley, Kotak Institutional Equities, JPMorgan, and Macquarie maintained bullish calls on the stock, citing strong retail performance, stable oil-to-chemicals (O2C) margins, and upcoming triggers from Jio’s tariff hike and new-energy initiatives.
Reliance Q2 FY26 Results: Profit Up 14.3%
RIL’s pre-minority interest profit rose 14.3% YoY to ₹22,092 crore, driven by solid performances across O2C, retail, and digital services.
The company reported capital expenditure of ₹40,000 crore during the quarter while net debt remained largely flat, reflecting prudent balance sheet management.
Analysts noted that the Q2 results were well-balanced across business verticals, with retail traction improving and telecom operations, particularly Jio, delivering steady profitability.
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Brokerage Analysis: Bullish Sentiment Continues
Nomura: Buy | Target ₹1,700
Nomura highlighted the retail segment’s strong performance, prompting it to raise FY26 and FY27 EBITDA estimates by 4% and 12%, respectively.
The brokerage identified three key growth triggers for RIL:
Scale-up of the new-energy business
Upcoming Jio tariff hike
Potential Jio IPO in H1 FY26
Morgan Stanley: Overweight | Target ₹1,701
Morgan Stanley cited RIL’s earnings strength and retail outperformance as reasons for potential stock re-rating.
The brokerage also emphasized new-energy ventures and AI initiatives, which could unlock $50 billion in additional value over time.
Kotak Institutional Equities: Add | Target ₹1,600
Kotak Institutional Equities called the Q2 results “robust”, with retail, telecom, and digital businesses performing above expectations.
It noted that while O2C may face short-term headwinds, the overall business mix remains strong and diversified.
JPMorgan: Overweight | Target ₹1,695
JPMorgan highlighted steady refining margins and currency tailwinds benefiting RIL’s O2C business.
Seasonal strength in retail and upside potential in Jio’s pre-IPO tariff hike were also cited as key drivers for continued bullish sentiment.
Macquarie: Outperform | Target ₹1,650
Macquarie noted a broad-based turnaround across all segments including retail, Jio, O2C, and Jiostar.
The brokerage expects RIL’s earnings trajectory to remain supportive through FY25-28, reinforcing confidence in the company’s long-term growth strategy.
Key Factors Driving RIL Stock Momentum
Strong Retail Growth: Retail EBITDA beat estimates, reflecting improving consumer demand and market share expansion.
Stable Oil-to-Chemicals Earnings: Refining and petrochemical margins remained resilient despite global volatility.
Jio Digital Services: Telecom operations remain profitable with expected tariff hikes to enhance revenue.
New-Energy Ventures: Investments in renewable and clean energy businesses are seen as long-term growth catalysts.
Balanced Capital Allocation: Flat net debt and high capex demonstrate prudent financial management.
Positive Across the Board
Analysts maintain that RIL’s diversified business model, combining traditional O2C operations with digital and new-energy growth engines, positions it well for sustained profitability.
“Reliance Industries continues to deliver balanced performance across its segments. With upcoming triggers from retail, Jio, and new-energy ventures, the stock remains an attractive long-term investment,” said a Mumbai-based equity analyst.
Conclusion: RIL Remains a Top Pick
The nearly 3% jump in RIL shares reflects investor optimism on the back of strong quarterly performance and future growth catalysts.
With brokerages maintaining buy and overweight ratings, Reliance Industries is likely to remain in focus for long-term investors seeking a combination of stability and growth in the Indian market.
