Mumbai – Reliance Industries Limited (RIL) posted robust financial results for the first quarter of fiscal year 2027, exceeding market expectations and prompting a wave of bullish sentiment from leading brokerages. The conglomerate reported consolidated revenue of Rs 3.40 lakh crore, marking a 24.5 percent year-on-year increase for the quarter ending June 30, 2026. Despite a reported decline in net profit, analysts highlighted strong operational performance across key segments, with Goldman Sachs projecting a significant 41 percent upside for the stock.[financialexpress+2]
Strong Operational Growth Drives Performance
Reliance Industries' Q1 FY27 performance showcased double-digit growth in its core businesses: Jio, Retail, and Oil-to-Chemicals (O2C). The company's recurring consolidated EBITDA, a key measure of operational profitability, climbed 10.1 percent year-on-year to Rs 54,067 crore. This strong operational showing came despite ongoing geopolitical tensions and volatile commodity markets.[financialexpress+2]
Consolidated net profit, however, saw a 22.4 percent year-on-year decline to Rs 20,946 crore. This decrease was primarily attributed to a high base in the prior year, which included a one-time gain of Rs 8,924 crore from the sale of listed investments. Excluding this non-recurring income, consolidated profit before tax actually rose 9.3 percent.[business-standard+6]
Digital and Retail Segments Expand
Jio Platforms, Reliance's digital arm, continued its strong growth trajectory. The segment reported a 9.2 percent increase in profit after tax, reaching Rs 7,764 crore for the quarter. Jio ended June 2026 with a substantial subscriber base of 533.3 million, including 285 million 5G users, demonstrating rapid adoption of its next-generation services. The company added 8.9 million subscribers during the quarter.[financialexpress+2]
Reliance Retail Ventures Limited (RRVL) also posted significant expansion. The retail giant's gross revenue reached Rs 90,408 crore, up 7.4 percent year-on-year. The customer base expanded to 396 million, with quarterly transactions jumping 46 percent year-on-year to 568 million. Digital grocery orders surged an impressive 116 percent year-on-year, reflecting a growing shift towards online shopping. Reliance Retail now operates 20,169 stores across more than 7,000 towns. Despite the growth in operations, Reliance Retail's net profit declined 14 percent to Rs 2,806 crore, and its EBITDA was slightly lower, facing some margin challenges.[business-standard+6]
O2C Business Rebounds, New Energy Projects Advance
The Oil-to-Chemicals (O2C) business delivered a robust performance, supported by higher refining margins. O2C revenue increased 30.4 percent year-on-year to Rs 2.02 trillion, with EBITDA rising 17.2 percent to Rs 17,010 crore. The oil and gas exploration and production segment also saw revenue growth of 3.2 percent year-on-year, reaching Rs 6,298 crore, while its EBITDA remained largely stable at Rs 4,973 crore. This stability was helped by higher crude oil prices and improved coal-bed methane production, which offset lower gas volumes from the KG-D6 field.[financialexpress+4]
Reliance Industries continued its significant investment in future growth, with capital expenditure for the quarter standing at Rs 38,682 crore. This includes ongoing efforts in new energy projects, which Chairman and Managing Director Mukesh Ambani highlighted as a key area for optimism. Ambani stated that the company had made a "steady start to FY27, with all businesses delivering strong operating performance." He also expressed optimism about the year ahead, citing the phased commissioning of new energy projects and the planned Jio IPO as significant value unlocking opportunities.[financialexpress+5]
Brokerages Maintain Bullish Stance
Following the strong Q1 results, a majority of brokerages maintained 'Buy' or 'Overweight' ratings on Reliance Industries stock. Analysts highlighted the company's diversified business portfolio and resilience in volatile markets. The consensus target price from these analyst updates suggests a potential 24 percent upside for the oil-to-telecom major.[businesstoday+4]
Goldman Sachs emerged as the most optimistic, assigning a target price of Rs 1,870 per share. This target represents approximately a 41 percent upside from the stock's closing price of Rs 1,327.20 on Friday. Goldman Sachs included Reliance Industries in its list of 15 large-cap stock ideas for the second half of 2026, citing reasonable valuations, potential recovery following the oil shock, and energy security as key drivers.[businesstoday+5]
Analyst Views on Future Growth
Other prominent brokerages also reiterated their positive outlooks. JPMorgan suggested an 'Overweight' rating with a target of Rs 1,660, while Jefferies recommended a 'Buy' with a target of Rs 1,705. Nomura and Citi both set target prices of Rs 1,690, with Nomura noting that Reliance's consolidated EBITDA was 6 percent above its estimate. CLSA valued the stock at Rs 1,800, citing Q1 numbers that were ahead of estimates, particularly in O2C and higher other income.[businesstoday+4]
Nuvama maintained a 'Buy' rating with a target price of Rs 1,765, indicating an upside of around 33 percent. The brokerage pointed to the O2C and Digital businesses as key support for EBITDA growth and noted the company's rapid expansion in solar capacity, which is expected to improve future profitability. Emkay also retained its 'Buy' rating with a target of Rs 1,680, highlighting strong O2C and upstream earnings, stable Jio margins, and management's confidence in doubling Retail EBITDA by FY29.[businesstoday+4]
Analysts from Motilal Oswal Financial Services (MOSL) reiterated their 'Buy' rating, with a revised target of Rs 1,550, indicating around 17 percent upside. MOSL expects consolidated EBITDA and PAT to grow at a compound annual growth rate of 9-10 percent over FY26-28. Digital Services is widely anticipated to be the largest growth driver, potentially contributing approximately 85 percent to RIL's incremental consolidated EBITDA between FY26 and FY28. The overall sentiment among market watchers remains positive, with expectations of continued strong performance across Reliance's diverse business portfolio.[m+5]
