In Thursday afternoon trading, Reliance Industries Ltd (RIL) shares climbed 1.8 percent to Rs 1,546.30, ranking among the top three gainers on the Nifty and serving as the largest positive influence on the index. This upward trend is driven by renewed positive assessments from several brokerages regarding the company's oil-to-chemicals (O2C) and new energy sectors.
The positive trend in O2C earnings boosts optimistic views on RIL.
UBS maintained its 'buy' recommendation for Reliance Industries shares, setting a target price of Rs 1,820, due to anticipated growth in O2C earnings driven by strong refining margins. The brokerage noted that the Singapore benchmark does not currently reflect the actual margins achieved by refiners with a focus on diesel. It also mentioned that Reliance's varied crude sourcing approach would mitigate the effects of geopolitical events, such as U.S. tariff measures. UBS forecasts that O2C operating profit will increase to Rs 34,000 crore in the second half of FY26 from Rs 29,500 crore in the first half.
Motilal Oswal Financial Services reaffirmed its 'buy' recommendation and increased its price target for Reliance Industries shares to Rs 1,765 from Rs 1,700, attributing this to favorable conditions from emerging new energy ventures. In its update dated November 19, the brokerage raised the valuation of Reliance's new energy division to Rs 174 per share after including the battery manufacturing business in its analysis.
The report highlights that Reliance's battery giga factory in Jamnagar, initially set for a 40GWh capacity by early CY26 and expandable to 100GWh, will play a crucial role in the company's energy solutions strategy. Motilal Oswal anticipates that the new energy sector will significantly contribute after FY30, projecting an FY30 EBITDA of Rs 16,900 crore from battery and integrated solar module production.
The brokerage also pointed out Reliance's competitive edge in terms of scale, technological execution, and its comprehensive ecosystem that includes solar, batteries, and wider energy solutions. It emphasized significant policy backing for battery production, such as viability gap funding for energy storage projects and allocations under the Production Linked Incentive scheme for advanced chemistry cell manufacturing, through which Reliance New Energy Solar Ltd has been granted a 15GWh capacity.
Motilal Oswal's optimistic perspective on Reliance's new energy projects and battery production prospects played a role in Monday's market gains. Meanwhile, UBS's prediction of stable O2C earnings, robust refining capabilities, and secure crude sourcing enhanced confidence in the core energy sector.
Brokerages generally maintain a favorable outlook on the stock. According to LSEG data referenced in a Reuters article, the average recommendation for RIL is a buy, with a median target price of Rs 1,685. In 2025, RIL shares have increased by 25 percent, surpassing the Nifty 50's 10.4 percent growth in the same timeframe.
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