RIL's Big Battery Bet: Why Motilal Oswal sees a new energy upside

Motilal Oswal on RIL: Oil-to-telecom conglomerate Reliance Industries (RIL) is quietly setting the stage for what could become one of India’s most consequential energy transformations. In a new note dated November 19, 2025, Motilal Oswal analysts have sharply lifted their valuation for the conglomerate’s New Energy business, from ₹116 per share earlier to ₹174 per share now, largely on the back of accelerating progress on its battery manufacturing venture. 

 

The brokerage has also reiterated its ‘Buy’ rating on RIL, raising its target price to ₹1,765.

 

The upward revision, according to the brokerage, reflects a growing conviction that batteries, long considered the missing link in India’s renewable transition, will become one of RIL’s biggest growth engines beyond FY30.

 

 

A 40GWh Giga factory in 2026, scaling swiftly to 100GWh

 

At the middle of this optimism is RIL’s first battery Giga factory in Jamnagar, slated to start operations in early calendar year 2026 (CY26) with a production capacity of 40GWh per year. The facility, central to RIL’s $10-billion clean energy roadmap, is already seeing major construction and engineering progress, with production equipment installation on schedule.

 

Importantly, the factory has been designed with modular scalability and is targeted to expand to a massive 100GWh, as outlined at the company’s 2025 AGM.

 

For the initial years, most of the output is expected to be consumed internally. RIL is simultaneously pushing ahead with the rollout of 100GW of renewable energy generation capacity, an integrated plan that will require large volumes of battery storage for grid balancing and energy smoothing.

 

In a business where scale and integration define cost competitiveness, RIL’s strategy, spanning solar, hydrogen, power electronics, and now batteries, is shaping up to be a long-term differentiator.  CATCH STOCK MARKET LIVE UPDATES TODAY

A market that could outgrow official projections

 

India’s energy storage demand is set to explode, analysts noted. As per the Central Electricity Authority’s National Electricity Plan (2023), the country will require 82.4GWh of storage capacity by FY27 and a staggering 411GWh by FY32. Batteries alone will account for 236GWh of this.

 

Motilal Oswal believes the actual requirement could far exceed these numbers.

 

Battery costs continue to fall, and new applications are emerging, from green hydrogen projects to pairing BESS with thermal and gas plants for better grid resilience. India could also emerge as a major global export hub, leveraging its large domestic base and improving manufacturing competitiveness.

 

Policy tailwinds are building too. The Power Ministry has advised renewable energy agencies and state utilities to mandate two-hour co-located storage, equivalent to 10 per cent of project capacity, in future solar tenders. Rooftop installers may soon face similar requirements, opening another high-volume market.

 

With India needing to add 50-60GW of renewable capacity annually beyond 2030, even the conservative assumption that 10-50 per cent of this would require battery support implies annual demand of 15-70GWh, a meaningful opportunity for large integrated manufacturers.

 

Why RIL holds an edge

 

Motilal Oswal identified scale, execution capability, and ecosystem integration as RIL’s core competitive strengths. Battery manufacturing, complex, capital-intensive, and deeply linked to global supply chains, favours companies that can operate at global scale while controlling costs and technology.

 

RIL’s experience in building large, complex manufacturing assets, combined with its integrated new energy platform, positions it to compete with global majors. The brokerage values the battery business at ₹58 per share, using an enterprise value (EV)/Ebitda multiple of 15x on projected FY30 earnings, discounted to FY28. For context, Chinese leader CATL trades at around 11x CY27 Ebitda.  ALSO READ | Will Nifty scale new highs soon? Analyst decodes with three stock picks 

A stronger New Energy narrative

 

With the inclusion of Giga factory economics, the valuation of RIL’s New Energy vertical has risen to ₹174 per share, now nearly 10 per cent of the overall target price. The brokerage expects the New Energy segment to generate ₹16,900 crore in Ebitda in FY30, roughly 7 per cent of RIL’s consolidated Ebitda by FY28.

 

The rest of the RIL structure continues to hold firm. Motilal Oswal values the standalone 

business at ₹411 per share, Jio at ₹585 per share, and Reliance Retail at ₹625 per share (factoring in the proposed stake sale). The combined picture reinforces the brokerage’s bullish stance on the stock.

 

The long game

 

RIL’s foray into batteries isn’t a short-term profitability play, it’s a long-duration strategy aligned with India’s decarbonisation commitments and global shifts in energy manufacturing. If battery demand accelerates beyond current projections, as Motilal Oswal analysts expect, the Jamnagar Giga factory could emerge as one of RIL’s most valuable assets in the next decade. 

 

For now, investors have one more reason to look closely at the company’s evolving clean energy blueprint, because it’s beginning to carry real valuation weight.