Reliance Industries: Margin, Positioning and Valuation

Research evidence excerpt

Reliance Industries: Margin, Positioning and Valuation

Idea

June 15, 2026 12:04 AM GMT

Morgan Stanley Asia (Singapore) Pte.+MReliance Industries | Asia Pacific Mayank Maheshwari

Equity Analyst

Margin, Positioning and Mayank.Maheshwari@morganstanley.comMorgan Stanley India Company Private Limited+ +65 6834-6719

Pranitha Shetty

Research AssociateValuation Pranitha.Shetty@morganstanley.com +91 22 6118-3022

Hinal Choudhary

Energy security is paramount and policy makers continue to Research Associate

surprise positively. As global fuel markets remain tight, we Hinal.Choudhary@morganstanley.com +91 22 6118-2044

expect refining margins to stay stronger for longer, with O2C Morgan Stanley Asia (Singapore) Pte.+ Ryan M Heng

earnings and AI infrastructure deployment cushioning any Research Associate

Ryan.Heng@morganstanley.com +65 6834-6465

valuation de-rating in the consumer verticals.

What will drive NAV upside and what's already priced in? Energy security policies

and tighter refining markets should keep product spreads structurally stronger for

longer, supporting Oil to Chemicals' (O2C) earnings despite higher logistics costs.

We think Reliance remains well positioned given its ability to process heavy and sour

Reliance Industries (RELI.NS, RIL IS)

crude grades, access cheaper feedstocks and maintain one of the most diversified Top Pick

crude sourcing portfolios globally. We also see the chemical cycle recovering, with India Oil & Gas | India

advantaged feedstocks through US ethane and captive naphtha supporting a 6-8%

Stock Rating Overweight

uplift to earnings this year. Beyond O2C, Monetisation 4.0 is underway as solar Industry View In-Line

modules and cell manufacturing, and energy storage manufacturing ramps up, and Price target Rs1,803

Up/downside to price target (%) 39