Reliance Industries Stock Gets Jefferies ‘Buy’ Upgrade on Profit Surge and ₹1,670 Target

Jefferies Turns Bullish on Reliance Industries

Reliance Industries Ltd (RIL), India’s largest conglomerate, received a significant endorsement from global brokerage Jefferies, which upgraded the stock to ‘Buy’ and set a price target of ₹1,670. The upgrade reflects confidence in the group’s robust profitability and the growth trajectory of its diversified businesses.

Oil-to-Consumer Growth Outpaces Expectations

According to Jefferies, the oil-to-consumer (O2C) business has been the standout performer, delivering more than 15% growth in H1 FY26, well above market expectations. Analysts note that refining margins and petrochemical spreads improved during the first half of the fiscal year, benefiting from stable crude prices and steady demand for downstream products. This outperformance has provided the foundation for Jefferies’ positive outlook.

Broader Business Segments Contribute to Upside

Reliance’s sprawling portfolio, spanning telecom, retail, digital services, and energy, continues to diversify earnings. The company’s telecom arm, Jio Platforms, remains the market leader in subscriber additions and average revenue per user (ARPU). Meanwhile, Reliance Retail reported double-digit growth, underscoring strong consumer sentiment despite broader macro headwinds.

Jefferies emphasized that Reliance’s balanced business mix shields it from volatility in any single sector, enhancing its earnings resilience and long-term visibility.

Valuation Metrics Strengthen, EV/EBITDA Outlook Improves

One of the primary reasons for Jefferies’ upgrade is an improvement in EV/EBITDA multiples, a widely tracked valuation measure. Reliance’s expanding profit base and strong free cash flow generation have lowered leverage concerns, while higher operating efficiency supports improved returns.

The brokerage estimates that EV/EBITDA for Reliance will trend favorably in FY26-27, narrowing the valuation gap between RIL and global energy and retail peers. This re-rating potential makes the stock attractive at current levels, according to analysts.

Shareholder Value and Target Price of ₹1,670

By setting a target of ₹1,670, Jefferies signals potential upside from current trading levels. The target is based on a sum-of-the-parts valuation, factoring in standalone O2C growth, steady telecom performance, robust retail expansion, and incremental value from new energy initiatives.

This recommendation aligns with broader investor sentiment that Reliance remains one of India’s most systemically important companies, with the ability to generate shareholder value through scale, execution, and market dominance.

New Energy and Future Prospects

Beyond its core operations, Reliance is actively building a presence in green energy, including solar, hydrogen, and storage solutions. While these ventures are still in the investment phase, Jefferies noted that the diversification enhances the company’s long-term growth potential and strategic positioning in India’s energy transition.

Analysts believe that over time, these initiatives could serve as significant catalysts, complementing the group’s existing cash-generating businesses.

Market Context and Investor Reaction

The Jefferies upgrade comes amid a period of heightened global uncertainty. With oil prices stabilizing and emerging markets showing resilience, Reliance’s diverse operations provide investors with relative safety. On the domestic front, India’s steady economic growth supports robust consumption trends, which directly benefit Reliance Retail and telecom.

Early market reaction has been positive, with Reliance Industries shares seeing renewed buying interest following the upgrade. Market participants suggest that the endorsement from an international brokerage adds credibility to the bullish outlook.

Conclusion

Jefferies’ decision to raise Reliance Industries to a ‘Buy’ rating with a ₹1,670 target underscores the company’s strong financial momentum, led by oil-to-consumer growth exceeding 15% in H1 FY26 and strengthened valuation metrics. As Reliance continues to expand across retail, telecom, and clean energy while delivering robust cash flows, it cements its position as a cornerstone of India’s corporate landscape. The core theme is unmistakable: Reliance Industries’ profit surge and diversified growth have propelled Jefferies to bet on the stock’s upside potential.