Mukesh Ambani -led Reliance Industries (RIL) is targeting 120 GWh battery manufacturing capacity in their new energy push. Reliance Industries in its analyst call after the Q1FY27 results release said that the company remains on track to commission 20 GW of integrated solar manufacturing capacity while scaling battery manufacturing to 40 GWh this year.
Karan Sur, Senior Vice President – New Energy, Reliance Industries said, “Our battery manufacturing is progressing well. We will achieve 40-gigawatt hour capacity this year and we have announced the scale up through our AGM up to 120-gigawatt hour capacity which effectively positions us as one of the largest globally when it comes to energy storage capacity,”
Reliance Industries bets big on integrated clean energy
Reliance Industries has also started executing renewable power projects in Kutch and expects electricity generation to begin later this year as transmission infrastructure becomes operational.
The company recently signed a green ammonia agreement with Samsung C&T and said it is in discussions with several strategic partners for additional capacity tie-ups.
The management believes its fully integrated renewable manufacturing ecosystem at Jamnagar will position Reliance Industries among the world’s lowest-cost clean energy producers.
Reliance’s New Energy push may add 10% to profit: Nuvama
Brokerage firm Nuvama Institutional Equities believes Reliance Industries’ New Energy business to start making a meaningful contribution to Reliance’s earnings from FY27. It estimates that the company’s initial 10 GW solar module business alone could add nearly 5% to profit after tax (PAT).
Nuvama also expects another 5% increase in PAT from lower captive power costs as Reliance Industries gradually replaces conventional power with renewable energy generated from its own projects.
Looking ahead, the brokerage estimates that the New Energy business could contribute around 8% of Reliance’s total profit by FY30. It added that the company remains on track to achieve its long-term goal of generating more than half of its profits from the New Energy business by 2030.
Reliance Retail doubles down on digital commerce
Along with its green energy push, Reliance Industries is also scaling up its digital commerce business through Reliance Retail.
“We are focusing on ramping up digital commerce across verticals,” V Srikanth said, CFO of Reliance Industries said, adding that investments in hyperlocal delivery infrastructure are aimed at building significant scale.
The company expects these investments to start improving margins and generating cash over the next 18-24 months.
Reliance Retail said online sales are expanding across grocery, fashion and electronics. Grocery digital orders jumped 116% year-on-year, while customer transactions rose 46%. The company said the shift towards online shopping has resulted in lower average transaction values but a much larger customer base.
Grocery remains one of the biggest beneficiaries of the online push. Reliance Retail now serves more than 5,500 pin codes through its network and launched a redesigned JioMart app during the quarter.
The company plans to rapidly expand its dark store network while strengthening JioMart and its omni-channel platforms. It is redesigning operations market by market, with investments focused only where there is a clear path to positive unit economics. The management said future profitability will be driven by higher repeat purchases, larger basket sizes, better order density, lower delivery costs, higher contribution from private labels and improved monetisation.
The digital strategy is also gaining traction in fashion and electronics. AJIO Rush, which offers deliveries within two to four hours, recorded a 136% sequential increase in orders during the quarter. Shein crossed 30 million app installs, while all major electronics stores are now integrated with JioMart, enabling deliveries within two hours through the company’s omni-channel network.
Summing up
Reliance Industries continues diversifying its business portfolio and ongoing investments to support long-term growth in Q1FY27 as well navigating one of the most challenging quarters due to disruptions in crude supplies, sharp swings in oil prices and global supply chain bottlenecks. The company plans to do the same in future as well betting big on AI, digital commerce and new energy.