Reliance Industries Ltd. remains an investor favourite after its first-quarter results showed positive momentum in telecom operations offset slower-than-forecast retail revenue and a gradual recovery in the oil-to-chemical business.
All but one of the 19 analysts tracking Reliance Industries that have reviewed the June quarter results have a 'buy' rating on the stock, according to Bloomberg data. Avendus Spark is the only brokerage with a 'sell' call on the RIL stock.
The average of 12-month analyst price targets of Rs 1,613 implies a potential upside of 9%.
Axis Capital has the highest price target of Rs 1,764, followed by Jefferies at Rs 1,726 and Goldman Sachs at Rs 1,700.
Reliance Industries Q1 Recap
Reliance Industries reported a 39% sequential rise in consolidated net profit to Rs 26,994 crore for the June quarter, driven by a one-time gain from the sale of listed investments.
Net profit, which came in above street estimates of Rs 19,775 crore, included other income of Rs 8,924 crore from the sale of listed investments, including proceeds from Reliance’s stake in Asian Paints.
Revenue down 7% to Rs 2.43 lakh crore versus Rs 2.61 lakh crore (Estimate: Rs 2.41 lakh crore)
Ebitda down 2% to Rs 42,905 crore versus Rs 43,832 crore (Estimate: Rs 44,497 crore)
Margin expanded 80 basis points to 17.6% versus 16.8% (Estimate: 18.4%)
Profit up 39% to Rs 19,775 crore versus Rs 19,407 crore (Estimate: Rs 19,775 crore)
Read RIL Q1 Result Highlights.
RIL Top Brokerage Calls
Macquarie
Maintain 'Outperform' with a target price of Rs 1,500.
Jio demonstrated robust performance, while retail growth lagged; the June quarter earnings optically beat estimates, primarily driven by one-off investment gains.
At a segment level, Jio exhibited strength, retail performance was lackluster, and the Oil-to-Chemicals (O2C) business is gradually recovering.
The management's presentation suggests significant optionality in New Energy, Jio, and Retail businesses over a three-year horizon.
We believe Reliance's share price could experience a near-term moderation following the results print.
Morgan Stanley
Maintain 'Overweight' with a target price of Rs 1,617.
The company experienced a tough quarter, with its earnings failing to provide the anticipated growth confidence.
There were misses in both retail revenue growth and fuel refining segments.
Management's guidance was optimistic, outlining a plan to double earnings by 2029.
New energy, telecom, and the balance sheet were identified as bright spots.
The impact of the new European sanctions on Russian oil is still being assessed.
JPMorgan
Maintain 'Overweight' and hiked target price to Rs 1,695 from Rs 1,568.
While headline figures were behind, key positives included better telecom margins and progress in New Energy.
Retail growth decelerated to 11% year-on-year, missing estimates, and O2C Ebitda was weaker than forecast.
Overall, Reliance Industries is positioned for improved profit growth in FY26 and FY27.
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