Brokerages say 'Buy' Reliance Industries after Q2 show; check target here

Don't want to miss the best from Business Standard?

Reliance Industries share price today: Oil-to-telecom congolomerate Reliance Industries shares were buzzing in trade on Monday, October 20, 2025, with the scrip rising up to 3.49 per cent to hit an intraday high of ₹1,466.50 per share, on the back of September quarter (Q2FY26) results.

 

At 12:30 PM, Reliance Industries shares continued to trade 3.31 per cent higher at ₹1,463.85 apiece. By comparison, BSE Sensex was trading 0.51 per cent higher at 84,383.88 levels.

 

RIL Q2 show

 

Reliance Industries Limited (RIL) reported a consolidated net profit of ₹18,165 crore in Q2FY26, up 9.7 per cent year-on-year (Y-o-Y) but down 32.7 per cent quarter-on-quarter (Q-o-Q) from ₹26,994 crore in Q1FY26. The sequential decline reflects a one-time gain of ₹8,924 crore booked in Q1FY26 from the sale of listed investments. 

 

Net sales rose 10 per cent Y-o-Y to ₹2.55 trillion, slightly above Bloomberg consensus estimates of ₹2.49 trillion, while core Ebitda, which excludes other income and one-offs, surged 17.5 per cent Y-o-Y to ₹50,367 crore, marking the fastest growth in eight quarters. Ebitda margins expanded 80 basis points Y-o-Y to 19.4 per cent, and core Ebitda margins improved 110 basis points to 18 per cent of net sales. 

 

Operating expenses rose 8.4 per cent Y-o-Y, slightly below revenue growth, while raw material costs declined 0.5 per cent Y-o-Y to ₹1.06 trillion, boosting gross margins. 

 

By business segment, Reliance Jio’s digital services division was the biggest contributor to consolidated net profit growth, with Ebit rising 22.4 per cent Y-o-Y to ₹12,065 crore, though net profit growth was limited to 12.8 per cent Y-o-Y due to sharply higher interest expenses. 

 

The O2C division followed, with Ebit increasing 18.3 per cent Y-o-Y to ₹12,560 crore, accounting for 38 per cent of the incremental growth in consolidated Ebit. 

 

Reliance Retail also contributed meaningfully, posting an 18.9 per cent Y-o-Y rise in Ebit to ₹5,269 crore, while net profit grew 17.2 per cent Y-o-Y, aided by moderate growth in interest costs. 

 

On Q2 numbers, Mukesh Ambani, chairman, Reliance Industries said, “Reliance delivered a robust performance in Q2FY26, led by strong contributions from O2C, Jio, and Retail businesses. Consolidated Ebitda growth reflects agile operations, a domestic-focused portfolio, and structural growth in the Indian economy.” 

CATCH STOCK MARKET LIVE UPDATES TODAY

Meanwhile, here’s what brokerages are saying about RIL post Q2 results:

 

Nuvama 

 

Nuvama highlighted three emerging growth drivers, including the ramp-up of the New Energy ecosystem with a cell facility starting next month that could add around 6 per cent to FY27 consolidated PAT, the upcoming RTC power plant in Kutch for GH2 production with potential cost reductions adding another 6 per cent to PAT, and artificial intelligence investments via a Meta JV and data centre expansion. Analysts also noted initiatives in FMCG brand building, food parks, and planned PVC expansion by end-CY26. Nuvama’s view is that Q2 Ebitda of ₹45,900 crore, up 17 per cent Y-o-Y and 7 per cent Q-o-Q, was 4 per cent above estimates, supporting a ‘Buy’ rating with a target price of ₹1,769.

 

JM Financial 

 

JM Financial observed that RIL’s consolidated Ebitda of ₹45,900 crore exceeded their and consensus estimates by 1.8-3.2 per cent, driven by strong performances in Retail and Digital segments. Retail Ebitda grew 16.3 per cent Y-o-Y on revenue growth of 22-23 per cent in grocery and food & lifestyle categories, while Digital Ebitda slightly outperformed forecasts, supported by 8.3 million net subscriber additions and a higher ARPU. Capex rose sharply to ₹40,000 crore, and net debt increased marginally to ₹1,18,600 crore. JM Financial expects RIL’s multi-segment capabilities to drive a robust 15-20 per cent EPS CAGR over the next three to five years and maintains a ‘Buy’ rating with a target price of ₹1,700.

 

Motilal Oswal 

 

Motilal Oswal described the quarter as operationally in line, with consolidated Ebitda up 10 per cent Y-o-Y to ₹45,900 crorer. Retail recovery was strong with 18–23 per cent Y-o-Y growth across categories and Ebitda growth of 17 per cent, while Digital Ebitda rose 3.5 per cent Q-o-Q with high net additions, and O2C Ebitda improved 3 per cent Q-o-Q. Consolidated PAT grew 10 per cent Y-o-Y to ₹18,200 crore, though other income declined and interest costs rose. Capex surged to ₹40,000 crore, with net debt at ₹1.19 trillion. While FY26-28E Ebitda estimates remain largely unchanged, attributable PAT was revised down 3-4 per cent due to higher interest costs and lower other income. Motilal Oswal reiterated a ‘Buy’ rating with a revised target price of ₹1,700.

Emkay

Emkay analysts stated that Reliance Industries reported a 4 per cent beat on consolidated Ebitda at ₹45,900 cror in Q2FY26, rising 17 per cent Y-o-Y and 7 per cent Q-o-Q, driven by stronger-than-expected performance in its Retail and Other segments. Consolidated PAT stood at ₹18,200 crore, up 10 per cent Y-o-Y and 1 per cent Q-o-Q, largely in line with estimates due to an 8 per cent Y-o-Y decline in other income and higher depreciation linked to Jio’s 5G capex.

 

The Retail segment delivered robust growth, with revenue and Ebitda rising 19 per cent and 16 per cent Y-o-Y to ₹90,500 crore and ₹6,820 crore, respectively -- exceeding expectations by 9 per cent and 5 per cent. Growth was broad-based across segments, including strong traction in quick commerce. The company reiterated its positive growth outlook.

 

Reliance Intelligence’s launch signals a strategic expansion into AI, supported by large-scale data center investments in Jamnagar and multiple partnerships to build AI applications for both consumer and enterprise markets. In the New Energy segment, RIL confirmed its cell manufacturing line will commence operations this month, while the RTC renewable energy ecosystem, comprising modules, batteries, and generation assets, is set for commissioning from H1FY27.

 

Therefore, analysts at Emkay remain constructive on RIL, citing marginal upgrades to FY26-28E Ebitda forecasts. The brokerage has retained its 'Buy' rating and increased its target price by 5 per cent to ₹1,680, rolling forward valuations to Sep-27E.