The Long View: Reliance Industries

Research evidence excerpt

The Long View: Reliance Industries

India | Integrated Oil

Reliance Industries EquityJulyResearch20, 2026

TARGET | ESTIMATE CHANGEJun-26 Review: In Line; Retail Weakness

RATING BUYContinues

PRICE INR1,327.00^

Consolidated EBITDA was in line with JEFe, with Upstream 26% ahead while

INR1,705 (INR1,675) |

O2C was 2% below and Retail 9% below. Core Retail growth softened while PRICE TARGET | % TO PT +28%

Ebitda declined y/y, impacted by Q-C aggression. O2C's healthy profitability 52W HIGH-LOW INR1,611.20 - INR1,253.65

should continue in the near term, with damages to refining infrastructure in FLOAT (%) | ADV MM (USD) 48.6% | 221.53

the Middle East and Russia. Stock trades > 1 SD below LT average. Revival MARKET CAP INR18.0T | $186.4B

in Retail growth is key for the stock. Maintain Buy, PT to Rs 1,705. TICKER RELIANCE IN

^Prior trading day's closing price unless otherwise

EBITDA in line: Consolidated EBITDA at Rs 475bn (+11% y/y) was in line with JEFe. O2C noted.

EBITDA was broadly in line with JEFe, with Retail EBITDA 9% below. Upstream EBITDA was

+26% ahead of JEFe on higher crude realization. PAT at Rs 209bn (-22% y/y) was 6% above FY (Mar) CHANGE TO JEFe JEF vs CONS

JEFe on higher other income and JV profit share. 2027 2028 2027 2028

Retail - Weak performance: Retail business missed our estimates. Margin declined y/y, largely REV NA NA NA NA

due to investments in hyperlocal to drive digital commerce share. Mgmt framed FY27 as a EPS -3% -1% NM -2%

“foundation year,” prioritising customer quality, repeat rates, & unit economics. While EBITDA

growth should trail revenue growth in near term, mgmt guides to 2x EBITDA over 3Y. We remain 2027 (INR) Q1 Q2 Q3 Q4 FY

below this and have cut FY27-29E EBITDA by 1-6%. FMCG remains on an aggressive growth EPS -- -- -- -- 63.75