Nuvama Institutional Equities has reaffirmed its 'Buy' rating on Reliance Industries, setting a target price of Rs 1,765. The brokerage highlights emerging growth engines in New Energy, AI, and consumer goods as key drivers for the conglomerate's future performance. This outlook comes amid recent developments, including the filing of the Jio Platforms IPO DRHP and major clean energy investments.
What Happened
Nuvama Institutional Equities has reiterated its 'Buy' rating on Reliance Industries Ltd (RIL), assigning a target price of Rs 1,765 per share. The brokerage report emphasizes that the company is transitioning toward several long-term growth engines, including its New Energy business, advancements in Artificial Intelligence (AI), and its consumer products division. This positive outlook by the brokerage aligns with the ongoing structural shift within the conglomerate, as it aims to reduce its reliance on traditional oil-to-chemicals (O2C) revenue while building scale in new technology and green fuel sectors.
The New Energy and Growth Pivot
A core pillar of the brokerage's optimism is the progression of RIL's New Energy business. Reliance has been aggressively investing in the Dhirubhai Ambani Green Energy Giga Complex in Jamnagar. The project spans 5,000 acres and includes manufacturing facilities for solar modules, batteries, and electrolysers.
Notably, the brokerage highlighted the company's recent strategic partnerships, including a $3 billion green ammonia supply agreement with Samsung C&T. This deal, aimed at international markets, marks a significant step in RIL’s plan to become a global supplier of green fuels. Additionally, the company has scaled up its battery manufacturing ambitions, targeting a capacity of 120 GWh annually, which is expected to support future earnings from fiscal year 2027 onwards.
Jio IPO and Value Unlocking
The optimism regarding RIL's valuation is further supported by the recent corporate action involving its digital services arm. On June 19, 2026, Jio Platforms Ltd filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). This move is a major catalyst that market analysts expect will unlock value for Reliance Industries shareholders. While the brokerage is positive about the IPO's potential to reveal the actual market value of Jio, it also noted that a holding company discount—a common phenomenon where the parent entity trades at a lower valuation than the sum of its individual parts—could temper the direct financial uplift for RIL shareholders in the near term.
Valuation Context and Risks
The target price of Rs 1,765 compares with the recent market price of approximately Rs 1,309 as of June 19, 2026, suggesting an upside potential from current levels. However, investors should be mindful of certain risks.
Execution remains the primary monitorable. Projects in green hydrogen, battery storage, and AI data centers are capital-intensive and face long commissioning timelines. Any delays in operationalizing these gigafactories or a slower-than-expected demand ramp-up in the green fuel market could pressure margins. Furthermore, while the consumer goods segment, Reliance Consumer Products Ltd (RCPL), has set an ambitious revenue target of Rs 1 lakh crore by FY30, the retail sector faces intense competition and potential margin pressure from broader economic factors.
What Investors Should Track Next
Investors may keep an eye on the following developments:
- Project Commissioning: Updates on the actual start dates for the solar and battery gigafactories in Jamnagar.
- Jio IPO Timeline: Further announcements regarding the price band, anchor investor bidding, and final listing dates following the DRHP filing.
- Earnings Impact: Management commentary on how much of the new energy and AI ventures start showing up in the balance sheet as commercial revenue by FY27.
- Petrochemical Expansion: Progress on petrochemical projects slated for completion by FY27, which remain a significant contributor to the company’s current cash flow.