Reliance Industries shares surged over 6% to ₹1,242 in early Monday trade, emerging as the top Nifty gainer, biggest positive contributor to the Nifty 50 index, and most actively traded stock on both NSE and BSE. The stock rally drove a broader market surge, with Sensex up 966 points (1.3%) to 75,426 and Nifty gaining 255 points (1.1%) to 23,309 by 9:40 am. The Mukesh Ambani-led conglomerate's market capitalisation stood at ₹16.77 lakh crore, reflecting strong investor confidence in the company's record quarterly performance. According to Moneycontrol, the strong performance prompted brokerages to raise their earnings estimates, with Jefferies expecting an increase in O2C profitability in the winter amid damage to refining infrastructure in the Middle East and Russia.
Multiple leading brokerages have issued fresh recommendations and revised share price targets for several stocks, with HDFC Securities, Elara Capital, Morgan Stanley, Goldman Sachs, Nomura, Goldman Sachs, Motilal Oswal and Nuvama maintaining, upgrading or revising their ratings across various sectors. According to reports from ET Now, while some brokerages have raised targets for stocks such as Dhanuka Agritech and Dixon Technologies, others have trimmed their estimates for Varun Beverages and Trent. The revised ratings span across pharmaceuticals, banking, energy, and technology sectors, with latest developments showing Reliance Industries receiving significant attention following its record Q2FY27 performance. Dolat Capital raised its PAT estimates by 6.2% for FY27, maintaining a 'BUY' rating with a target of ₹1,635/share, while Emkay Global raised FY27/28/29E EPS by 15/8/3% building in better O2C earnings.
Reliance Industries delivered exceptional Q2FY27 results with consolidated revenue surging 28% year-on-year to an all-time high of ₹3.62 lakh crore, marking the company's strongest-ever quarterly financial performance. EBITDA increased 24% to a record ₹62,409 crore, while net profit jumped 34% to ₹29,550 crore, also a quarterly record. The oil-to-chemicals (O2C) business delivered its strongest-ever quarterly performance, with revenue rising 44.2% year-on-year to ₹2.32 lakh crore and EBITDA surging 67.9% to ₹25,203 crore. Transportation fuel cracks, a measure of refining margins, rose 3 to 3.7 times from a year earlier, reaching historic highs during the quarter. Jio Platforms also recorded growth, with revenue rising 11.3% year-on-year to ₹47,485 crore and EBITDA increasing 16.6% to ₹21,879 crore, supported by subscriber additions, higher average revenue per user and expansion in digital services.
Jio Platforms reported an 11.3% year-on-year increase in revenue to ₹47,485 crore for the September 2026 quarter, marking the company's first quarterly results announcement since its stock market debut. According to ET Now, EBITDA rose 16.6% to ₹21,879 crore, driven by subscriber additions, higher average revenue per user (ARPU) and growth in digital services. The strong performance reflects the continued growth trajectory of India's largest telecom operator, with the company maintaining its position as a key contributor to Reliance Industries' diversified portfolio.
Goldman Sachs maintains its BUY rating with a target price of ₹1,840, implying 58% upside from Friday's closing price of ₹1,164.90. According to Goldman Sachs, Reliance's Q2 EBITDA beat its estimates by 9%, led by strong O2C performance. However, Goldman Sachs expects refining margins to moderate in the December quarter due to higher very large crude carrier (VLCC) freight costs, although this could be partly offset by processing discounted heavy crude. The brokerage noted that Reliance Retail's EBITDA declined 11% year-on-year, while revenue growth slowed to 6.4% from 11% in the preceding quarter, reflecting the timing of festive demand and investments in JioMart. Nomura also retained its Buy rating, with a target price of ₹1,560 per share, attributing Reliance's record earnings to multi-decade-high refining cracks and noting that consolidated EBITDA rose 19% sequentially, beating estimates by 9%. Both brokerages highlighted steady growth in telecom, while pointing to weakness in Reliance Retail due to the shift in festive demand and investments in digital commerce.
RIL has guided for an earnings contribution from its New Energy business starting FY28, following an accelerated rollout. According to Goldman Sachs, the company's solar module and cell manufacturing capacities of 6 GW and 5 GW, respectively, remain on track to reach 20 GW each in the first half of next year. Battery pack and container facilities are expected to ramp up in the first half of calendar year 2027, followed by battery cell facilities in the second half. The Kutch-Jamnagar renewable energy power transmission project is targeted for completion in the first quarter of 2027, while earnings contributions from renewable energy and round-the-clock power operations are expected from FY28. The brokerage's Golden Refining Era thesis remains intact, anticipating sustainable gross refining margins of more than $10 per barrel, though continued weakness in the richly valued Retail business, trading at 27 times EV/EBITDA, could offset stronger O2C performance.
