Reliance Industries Share Price: Goldman Sachs, Nomura Targets

Reliance Industries shares have received positive ratings from major brokerages following the company’s record performance in the September quarter of FY27. Goldman Sachs and Nomura have maintained their Buy recommendations, pointing to strong earnings from the oil-to-chemicals (O2C) business and steady growth in telecom operations.

However, the outlook is not without risks. Weakness in retail earnings, the possibility of moderating refining margins and higher freight costs could influence the company’s performance in the coming quarters. Brokerages are therefore assessing whether the strength of Reliance’s core energy and digital businesses can offset pressure in other segments.

Goldman Sachs has set a target price of Rs 1,840 per share, while Nomura has assigned a target of Rs 1,560. Both estimates indicate potential upside from the stock’s latest reported closing price, although their valuations and assumptions differ.

Reliance Industries Share Price and Brokerage Targets

Reliance Industries shares closed at Rs 1,164.90 on Friday, October 30, declining 0.21% ahead of the company’s second-quarter results announcement. At that closing price, the company had a market capitalisation of approximately Rs 15.76 lakh crore.

Goldman Sachs’ target price of Rs 1,840 represents an implied upside of around 58% from the October 30 closing level. Nomura’s target of Rs 1,560 indicates an implied upside of approximately 34%.

The difference between the two targets reflects variations in brokerage assumptions about the company’s earnings, business segments and valuation. Both firms, however, remain positive on Reliance following its strong quarterly performance.

Reliance Industries Q2 FY27 Results: Record Earnings Driven by O2C

Reliance Industries reported its strongest-ever quarterly financial performance in the second quarter of FY27, recording new highs in revenue, EBITDA and net profit. Growth was supported primarily by its O2C operations, alongside contributions from digital services and retail.

Consolidated revenue increased 28% year-on-year to a record Rs 3.62 lakh crore. EBITDA rose 24% to Rs 62,409 crore, while net profit climbed 34% to Rs 29,550 crore.

The O2C business was the standout performer. Revenue from the segment increased 44.2% year-on-year to Rs 2.32 lakh crore, while EBITDA surged 67.9% to Rs 25,203 crore.

The strong performance reflects improved profitability in the company’s refining and petrochemical operations. O2C earnings were also supported by stronger refining conditions, which played a major role in the group’s overall quarterly results.

Goldman Sachs on Reliance Industries: Buy Rating, Rs 1,840 Target

Goldman Sachs maintained its Buy rating on Reliance Industries and set a target price of Rs 1,840 per share. The brokerage said the company’s second-quarter EBITDA exceeded its estimates by 9%, largely because of stronger-than-expected O2C performance.

Despite the positive quarterly result, Goldman Sachs expects refining margins to moderate in the third quarter. Higher costs for very large crude carrier (VLCC) freight could put pressure on refining profitability.

However, the brokerage believes that processing discounted heavy crude could partly offset the impact of increased freight expenses. The balance between crude sourcing costs, transportation expenses and refining margins will therefore remain important for the segment’s earnings outlook.

Retail Performance Remains a Concern

Goldman Sachs highlighted weaker performance in Reliance Retail. The segment’s EBITDA declined 11% year-on-year, while revenue growth slowed to 6.4% from 11% in the preceding quarter.

The brokerage attributed the slowdown partly to the timing of festive demand and investments in JioMart. Retail EBITDA margin also contracted by 140 basis points year-on-year, indicating pressure on profitability.

These figures suggest that the retail business did not contribute to earnings growth at the same pace as the O2C segment. Investors will likely monitor whether festive demand and digital commerce investments translate into stronger revenue growth and improved margins in subsequent quarters.

New Energy Projects Remain on Track

Goldman Sachs also discussed Reliance’s progress in its new energy business. The company’s solar manufacturing capacities of 6 GW for modules and 5 GW for cells are expected to expand to 20 GW each in the first half of next year, according to the brokerage.

Battery pack and container facilities are expected to begin ramping up in the first half of calendar year 2027, followed by battery cell facilities in the second half of the year.

The Kutch-Jamnagar renewable energy power transmission project is targeted for completion in the first quarter of 2027. Goldman Sachs expects renewable energy and round-the-clock power operations to begin contributing to earnings from FY28.

These projects represent a longer-term opportunity for Reliance as it expands beyond its traditional energy operations. However, the timing of capacity additions, operational ramp-up and earnings contributions will be important factors in assessing the business’s financial impact.

Nomura on Reliance Industries: Buy Rating, Rs 1,560 Target

Nomura also retained its Buy recommendation on Reliance Industries, assigning a target price of Rs 1,560 per share. The brokerage attributed the company’s record second-quarter performance to multi-decade-high refining cracks.

According to Nomura, consolidated EBITDA increased 19% sequentially and exceeded its estimates by 9%. The O2C business was the primary driver of the improvement.

The brokerage said Reliance’s telecom business continued to deliver steady growth, providing support to the company’s overall earnings. However, retail remained relatively weak because of the shift in festive demand and continued investments in digital commerce.

Nomura’s valuation analysis placed Reliance at 8.7 times its estimated FY28 enterprise value-to-EBITDA ratio and 16.5 times its estimated FY28 price-to-earnings ratio.

These valuation multiples offer an indication of how the brokerage assesses the company’s market value against its projected earnings. The target price reflects Nomura’s expectations for future performance rather than a guaranteed share price outcome.

Key Factors That Could Influence Reliance Shares

1. O2C Earnings Momentum

The O2C business delivered the strongest contribution to Reliance’s latest quarterly results. Its ability to sustain profitability will depend partly on refining conditions, petrochemical demand, crude sourcing and transportation costs. Any moderation in refining margins could affect earnings in the coming quarters.

2. Jio’s Steady Growth

Reliance’s digital services business remains another important earnings driver. Jio Platforms reported 13.7% year-on-year growth in quarterly net profit, highlighting continued expansion in the telecom and digital services segment.

3. Retail Recovery

The decline in retail EBITDA and slower revenue growth remain areas of concern. Investors will watch whether improved demand and investments in JioMart can support a recovery in the segment’s growth and margins.

4. New Energy Investments

Reliance’s solar and battery manufacturing projects could become increasingly important to its long-term business profile. Their contribution will depend on capacity expansion, commissioning schedules and the pace at which the facilities reach commercial operations.

Should Investors Watch Reliance Industries Stock?

The latest brokerage assessments indicate a positive outlook for Reliance Industries following its record second-quarter earnings. Strong O2C profitability, steady telecom growth and progress in new energy projects support the investment case presented by Goldman Sachs and Nomura.

At the same time, the retail business’s weaker performance and the possibility of lower refining margins highlight the risks that investors need to consider. The difference between the two brokerages’ target prices also shows that expectations about future earnings and valuation can vary significantly.

Goldman Sachs’ Rs 1,840 target and Nomura’s Rs 1,560 target are brokerage estimates based on their respective assessments of Reliance’s business outlook. Investors should not treat these targets as assured returns and should consider their own risk tolerance, investment horizon and financial objectives before making decisions.