Reliance Industries (RIL) shares gained nearly 2% in intraday trading on Wednesday, hitting the ₹1,300 mark following the announcement of a data centre project deal with Meta in Gujarat. According to Business Standard, the stock had hit a new 52-week low of ₹1,257.50 on June 9, 2026, before recovering from recent lows. The stock has declined 9% in the last one month and tanked 12% from its 52-week high of ₹1,474 touched in January 2026. Analysts attribute the recent weakness to the company's cautious forecast for FY27 amid headwinds from the West Asia war, but suggest this weakness can be bought into from a medium-to-long term horizon.
The stock decline follows RIL's cautionary statement about FY27 earnings prospects in its annual report issued on Thursday, May 28, 2026. As reported by Business Standard, the company expressed that the outlook for 2026-27 remains extremely vulnerable to geopolitical, macro-economic and policy risks. RIL flagged that near-term retail consumption demand may remain sensitive to macro conditions, with global oil demand growth expected to be sluggish due to higher oil prices and economic slowdown amid the West Asia conflict. The company noted that refinery and oil infrastructure damages caused by the West Asia conflict are likely to take a longer period to recover, resulting in continual volatility in the market.
According to Equinomics Research, foray into green energy, data centres and reducing dependence on the oil & gas business augur well for RIL. G Chokkalingam, founder and head of research at Equinomics Research, stated that at the current levels, one can buy the stock from a 1-3 year perspective for around 15-20% gain. He noted that investors are also cautious ahead of the 49th AGM later this month, but emphasized that most of RIL's business verticals have value from a medium-to-long term perspective. The analyst highlighted that the overall structure suggests that while the stock remains under pressure, a decisive move above resistance could shift momentum in favour of the bulls.
Despite challenges, RIL's gas portfolio remains well-positioned to support India's energy transition, with natural gas expected to play an increasingly critical role in India's energy mix. As reported by Business Standard, natural gas's share in the energy mix is targeted to rise from around 6% to 15% by 2030. RIL's gas portfolio contributes nearly 30% of the country's domestic gas production, with continued development of deepwater and CBM assets expected to augment supplies and cater to India's growing gas demand in FY27 and beyond.
Post Q4FY26 results, analysts at Motilal Oswal Financial Services cut their FY27E EBITDA and PAT by 3-4% due to challenges in the Energy business and delays in tariff hikes in RJio. According to Business Standard, the brokerage expects RJio to remain the biggest growth driver with 18% EBITDA compound annual growth rate over FY26-28E. At the current levels, analysts suggest the stock can be bought for medium-to-long term gains, with the average trading volumes jumping two-fold and a combined 14.5 million equity shares changing hands on the NSE and BSE.
