The share price of Reliance Industries climbed to a new 52-week high today, November 25. The stock touched Rs 1,552, gaining nearly 1% intraday. The rise comes after global brokerage JPMorgan reiterated its ‘overweight’ view on India’s largest conglomerate and projected an 11% upside. The brokerage has set a target price of Rs 1,727 per share.
While the stock has already gained 27% so far in 2025, JPMorgan believes there is more room to run, backed by shifts in refining margins, upcoming telecom and retail triggers, and a turnaround in its energy segment.
Let’s take a look at the brokerage say on this stock –
JPMorgan on Reliance Industries: Why the brokerage sees more upside
According to the brokerage report, Reliance Industries‘ recent outperformance does not fully capture the earnings potential that could unfold in FY26–FY27. JPMorgan highlighted that RIL has beaten the Nifty 50 Index, rising 27% year-to-date (YTD) compared to Nifty’s 17% return.
The brokerage noted, ” Reliance Industries is up 27% YTD, outperforming the Nifty 17%. Yet, we retain our positive bias into 2026 for three key reasons.”
JPMorgan on Reliance Industries: Valuations still look reasonable relative to peers
JPMorgan argued that despite the rally, the stock remains relatively inexpensive compared to other consumer-facing giants.
The report stated that RIL still trades at roughly a 15% holding-company discount when compared with Bharti Airtel and Avenue Supermarts (DMart).
As the report puts it, “We estimate Reliance Industries still trades at a c.15% holding company discount to these.”
This discount emerges mainly from the market’s pessimism around refining and petrochemicals in recent years, a drag that the brokerage believes is now easing.
JPMorgan on Reliance Industries: Refining cycle turns favourable again and strong Q3 shaping up
One of the biggest reasons JPMorgan is more optimistic is the recovery in the refining business. The brokerage highlighted that refining margins are stabilising and could improve further in the coming quarters.
JPMorgan noted, “The earnings drag from weak refining/petchem through FY24/25 is over. We forecast earnings growth should be much better.”
Its internal tracker shows that Reliance’s refining margins are up by nearly USD 3.8 per barrel quarter-on-quarter. Even after accounting for the loss of discounted Russian oil, the brokerage house estimates a potential 6% upgrade to FY27 earnings if current margins sustain.
Furthermore, the brokerage expects all three major business segments such as the oil-to-chemicals (O2C), telecom, and retail to deliver a stable performance in the third quarter of FY26.
The report added that telecom earnings before interest, taxes, depreciation and amortisation (EBITDA) could grow 15% year-on-year, while retail may benefit from festive demand and goods and services tax (GST) cuts.
According to JPMorgan, “Each of RIL’s three businesses should do well in 3Q.”
JPMorgan on Reliance Industries: 2026 could bring multiple triggers
The brokerage house also outlined several catalysts that could support the stock next year.
The brokerage added, “Catalysts in 2026 (Jio IPO / tariff increase; new energy commissioning; more stable retail growth) can be supportive of stock.”
