Reliance Industries (RIL), the largest stock in India in terms of market capitalization, is expected to see an exciting period leading up to its annual general meeting (AGM), with notable improvements predicted in Q1 results for FY26. Mukesh Ambani's company is expected to hold its AGM in August or September. Global brokerages CITI and CLSA are optimistic about Reliance.
Reliance Industries Share Price:
At the time of writing, RIL stock traded at Rs 1,516.70 on BSE, marginally down with a market valuation of Rs 20,51,996.49 crore. This comes after it touched an intraday high of Rs 1524.65 apiece in the opening bell.
What is noteworthy is that RIL is less than Rs 100 away from hitting its 52-week high of Rs 1,608.95 apiece. YTD, Reliance stock has zoomed more than 24%.
Reliance Industries Q1 Results:
After a muted FY25, CLSA anticipates a notable improvement across all Reliance's businesses from 1Q onwards, which could trigger excitement in the stock. The drag in performance last year was partially due to operational streamlining in its retail operations, which is now over.
The brokerage is expecting retail to report YoY Ebitda growth in the high-teens starting from 1QFY26 as the benefits of the streamlining becomes visible. On the telecom front, Jio has added 2.6m mobile subscribers in April 2025, as per the latest TRAI data. The addition to broadband subscribers (including AirFiber) will be over and above this, which could result in c.9-10m subscriber additions in 1Q versus 6m in all four quarters of FY25.
Also, CLSA's GRM marker for Reliance flags a US$1.1/bbl QoQ gain, which bodes well for the O2C segment.
Reliance will likely announce its Q1 results in July month, along with Reliance Retail and Jio quarterly earnings as well.
Reliance Industries AGM:
Reliance's AGM is predicted in August or September, which will be pivotal for the stock, as it may hold hints for an upcoming Jio IPO, as well as announcements on scaling up in quick commerce, FMCG and new energy.
In its note, CLSA added, Reliance's AGM will be an important event in the upcoming quarter (likely AugustSeptember 2025), which may add anticipation around the stock. Announcements and details regarding JioStar and its quick commerce offering along with its FMCG expansion plans could be fresh tailwinds for our SOTP valuation of the stock.
Adding, CLSA said, "We also expect to hear about the detailed timelines on the commissioning of its other new energy projects: electrolyser and battery manufacturing facilities. Any hints on the potential Jio IPO could act as another crucial trigger for the stock."
Reliance Industries Target Price Beyond Rs 1600:
According to Citi's note, the focus of the market on (the next round of) tariff hikes misses several other structural drivers that provide a long runway for growth for the Indian telecom sector in general and Jio in particular.
"We forecast a 3-year consolidated EBITDA CAGR of 16% for Jio Platforms (JPL), valuing the business at an EV of ~$135bn; the contribution of factors other than tariff hikes to this growth is 6-7% CAGR. RMS expansion & margin levers create room for further upside," it said.
Pertinently, Citi believes that healthy growth rates are sustainable well beyond our forecast horizon and the sector is still far from going low/ex-growth, as is the case in more mature markets.
" Along with falling capex intensity, rising FCF generation, and improving ROCE, we argue that higher nearer-term multiples are warranted to capture the ensuing upside. Buy; TP Rs1,690," said CITI's note.
Also, CLSA said, "Most listed retail sector stocks have outperformed the benchmark by 4-17% on a YTD basis driven by steady growth. This, along with return of strong profit growth from 1Q onwards, should positively rub-off on valuations for Reliance Retail. We maintain our O-PF rating with a target price of Rs1,650, implying a 14% upside. A faster pick-up in Jio's subscriber additions is a key upside risk to our estimates."
Reliance Industries Limited is a Fortune 500 company and the largest private sector corporation in India.
Disclaimer: The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.
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