The oil-to-telecom conglomerate, Reliance Industries, reported better-than-expected Q4 earnings. It reported strong EBITDA across segments and highlighted new energy as a key growth driver going forward (earnings before interest, tax, depreciation, and amortisation). Most brokerages have given a thumbs up to the Q4 performance and have set a target price of between Rs 1,500 – 1,700 per share. The share price of Reliance Industries was up 2% at Rs 1,326.40 around 9.25 am.
CLSA on Reliance Industries: Estimates ahead of expectations
The brokerage house CLSA has an ‘Outperform’ rating on the stock with a target price of Rs 1,650. The company’s net profit was a bit ahead of the fourth quarterly earnings. Plus, the management has guided Reliance Retail to resume its strong growth trajectory from the first quarter of the financial year 2025-26. Further, for the very first time, the company has committed to growth via quick commerce delivery under 30 minutes, with no delivery or hidden charges.
JPMorgan on Reliance Industries: Reliance Retail’s growth a key positive
Another international brokerage house, JPMorgan, has been ‘Overweight’ on the oil-to-chemical mammoth, with a target price of Rs 1,530. JP Morgan believes that the 16% growth year-on-year in Reliance Retail was a key positive in Q4FY25. With favourable valuation, this could help to drive the share price in the near term.
Macquarie on Reliance Industries: Growth at an inflection point
Macquarie has an ‘Outperform’ rating on Reliance Industries with a target price of Rs 1,500 and sees the company to be at a key growth turning point. Reliance Jio was the main contributor of the incremental group EBIT or operating profit. The retail business witnessed an improvement in revenue growth momentum from 3% in the first half of FY25 to 9% in Q3FY25 & 16% in Q4FY25.
Nuvama on Reliance Industries: New energy green shoots
The broker Nuvama Institutional Equities, in a research note on post-quarterly results, said that the new energy (NE) net profit’s share could increase to 12% by FY30. Mukesh Ambani, the chairman, expects the new energy segment’s net profit to be equal to that of oil to chemicals by FY29-31. “NE shall add more than 50% to consolidated profit after tax, and a much higher value given clean tech,” said the brokerage house. Nuvama retained its Buy call on the stock with a target price of Rs 1,708. The brokerage finds the domestic market lucrative for Reliance to initially sell HJT modules. HJT modules, which stand for Heterojunction solar cells, are a type of solar panel. “Given Waaree Energy’s and Premier Energies’ capacity and profits, we reckon RIL’s DCR modules could generate EBITDA of Rs 6,000 crore on 10GW facility conservatively (4% of FY25 EBITDA), “ said Nuvama. A DCR module refers to a solar photovoltaic (PV) module that fulfils the Domestic Content Requirement (DCR) policy. This means that both the solar cells and modules need to be manufactured within the country.
Nomura on Reliance Industries: Strong set of results
The global brokerage house maintained its Buy rating on Reliance Industries and raised the target price marginally to Rs 1,650 from Rs 1,600. The stock is the top pick of Nomura in India’s energy segment. The broker said that the company to grow on the back of the scale-up of new energy business, upcoming tariff hikes for Jio, and potential listing of JIO, which might unlock value for Reliance. “Additionally, with the completion of the streamlining of operations at Reliance Retail, the retail business will sustain a healthy growth trajectory,” said Nomura. However, it trimmed the FY26-27 EBITDA estimates by 1-2%.
Reliance Industries Q4 results
The company’s net profit rose 2.4% to Rs 19,407 crore for Q4FY25. The company’s revenue increased 8.8% to Rs 2.88 lakh crore in Q4FY25, driven by Jio, Reliance Retail and oil-to-chemicals business. Its consolidated earnings before interest, taxes, depreciation and amortisation climbed 3.6% to a record Rs 48,737 crore in Q4FY25.