Religare Broking has set a target of Rs 1,696 for Reliance Industries, citing the upcoming Jio Platforms IPO as a valuation catalyst. With RIL shares down 26% in 2026, analysts believe an independent market price for Jio could reduce the conglomerate discount. The IPO, which seeks to raise Rs 30,000 crore, is scheduled to list on October 28.
Reliance Industries (RIL) shares, which have faced a 26% correction year-to-date in 2026, may see a shift in market sentiment according to a new report from Religare Broking. The brokerage has initiated coverage on the stock with a target price of Rs 1,696, suggesting a significant upside from the current trading price of approximately Rs 1,179.50. Analysts argue that the highly anticipated Jio Platforms initial public offering (IPO) is the primary trigger needed to unlock value across the group's diverse business segments.
Resolving the Conglomerate Discount
The brokerage views the IPO as a way to remove the so-called conglomerate discount that has historically weighed on RIL's stock price. When a company owns several distinct large businesses—in this case, digital services, retail, and energy—the market often applies a discount because it is difficult to assign a precise value to each segment. By taking Jio Platforms public, the group will establish an independent market price for its digital business. This allows investors to value the company using a sum-of-the-parts model, which analysts believe will more accurately reflect the true worth of the individual divisions.
IPO Details and Debt Strategy
The Jio Platforms IPO is scheduled for subscription from October 21 to October 23, 2026, with a targeted listing date of October 28, 2026. The company plans to raise approximately Rs 30,000 crore through a fresh issue of shares, with a price band set between Rs 1,065 and Rs 1,119 per share. A key part of the strategy involves using the proceeds to repay existing borrowings at Reliance Jio Infocomm. By reducing this debt, the group aims to lower interest expenses and improve cash flow at the subsidiary level, creating a healthier balance sheet that could benefit the parent company.
Operational Transition and Challenges
Jio has moved past its initial, capital-heavy network building phase and is now focused on monetization. The company reported revenue from operations of Rs 1,46,885 crore in FY26, with an EBITDA margin of 51.9%, indicating that the digital business has reached a level of operational maturity. Growth is now being driven by rising average revenue per user (ARPU), the introduction of premium 5G plans, and the expansion of cloud and enterprise AI services.
However, investors should be aware that the bullish case for the stock faces notable hurdles. The 26% decline in RIL shares this year has been largely driven by pressure on the oil-to-chemicals (O2C) segment, where refining margins have been weaker than expected. Furthermore, the company has been dealing with broader market volatility and a trend of foreign institutional investor (FII) selling in the Indian market. While the IPO is a positive catalyst for the digital business, the overall stock performance remains tied to how well the energy and retail segments navigate these macroeconomic pressures.
Looking ahead, the key monitorables for shareholders will be the listing day performance of the IPO, the sustainability of ARPU growth in the telecom sector, and whether the group can improve margins in its core energy business in the coming quarters.