Reliance Industries: JPMorgan target hike, 2026 cues

Stock hits a fresh 52-week high

Reliance Industries (RIL) moved to a fresh 52-week high after a bullish brokerage note from JPMorgan helped improve sentiment around the stock. On the day referenced in the reports, RIL opened at ₹1,535 and rose to ₹1,559.6 in morning trade. The stock was also cited as trading around ₹1,551, up nearly 1%, while another line in the coverage described a 1.5% rise.

The move extended RIL’s year-to-date gains to 27%, reflecting stronger confidence among global brokerages. Separately, another JPMorgan-related note said Reliance shares were up 18% in 2025 against 4.3% gains in the Nifty. A separate comparison in the article set said RIL had significantly outperformed the Nifty 50, which rose 9.5% over the same period.

JPMorgan reiterates ‘Overweight’ and flags momentum into 2026

JPMorgan reiterated its ‘Overweight’ rating on Reliance and said it expects earnings momentum to remain strong through 2026. One section of the provided text cited a JPMorgan target price of ₹1,727, indicating nearly 11% upside from the then-current levels.

Other parts of the compilation cited different JPMorgan targets in different contexts. Investing.com reported JPMorgan reiterated ‘Overweight’ with a price target of ₹1,695, and another update said the target was raised to ₹1,695 from ₹1,568. Given the mixed excerpts, the common thread across versions was that JPMorgan remained positive on RIL’s earnings trajectory into FY26 and FY27.

Why valuation and refining trends mattered in the note

JPMorgan said RIL’s valuations look attractive versus peers such as D-Mart and Bharti Airtel. The brokerage also said the stock trades at a 15% holding-company discount, which it viewed as supportive for long-term investors.

It also pointed to the view that the earnings drag from weaker refining and petrochemicals performance during FY24-25 is behind the company. The note referenced global refining strength and said current refining margins provide support after volatility over the past two financial years. Another brokerage, UBS, also leaned on the refining-margin argument, saying benchmark indicators do not fully reflect the margins of diesel-heavy refiners like Reliance.

2026 catalysts highlighted: Jio IPO, tariffs, new energy, retail

JPMorgan listed several potential triggers for 2026 that could support the stock. The note mentioned the possibility of a Jio IPO, telecom tariff hikes, commissioning milestones in new energy, and stable retail growth. The same collection of excerpts also referenced that tariff increases could come ahead of a proposed Jio IPO.

Other brokerages echoed similar triggers. Nomura pointed to near-term drivers including the scale-up of new energy, potential Jio tariff hikes, and a likely IPO of Jio by the first half of 2026. Morgan Stanley called the September quarter a “confidence-restoring” moment and highlighted a strong setup for the December quarter driven by retail and refining margins.

What UBS and Motilal Oswal said

UBS reiterated a ‘buy’ rating with a target price of ₹1,820. It said it expects improvement in oil-to-chemicals (O2C) earnings supported by refining margins and cited RIL’s diversified crude sourcing as a cushion against geopolitical risks, including actions related to US tariffs.

UBS estimated O2C operating profit could rise to ₹34,000 crore in the second half of FY26 from ₹29,500 crore in the first half. Motilal Oswal maintained a ‘buy’ call and raised its target price to ₹1,765 from ₹1,700, citing optimism around upcoming new energy businesses.

Financial snapshot cited in the reports (Q2 FY26)

Parts of the supplied material included quarterly figures for Q2 FY26. Consolidated profit after tax (PAT) was reported at ₹18,165 crore, up from ₹16,563 crore a year earlier. Revenue from operations rose 10% year-on-year to ₹259,000 crore, while gross revenue was reported at ₹283,000 crore.

EBITDA climbed 15% to ₹50,367 crore and operating margin improved to 17.8% from 17% last year. Capital expenditure was cited at ₹40,010 crore, linked to investments in O2C capacity expansion, Jio digital infrastructure, retail growth, and new energy projects. Mukesh Ambani said the results reflected strong contributions from O2C, Jio, and retail.

Key market data and brokerage targets at a glance

The coverage combined multiple notes and market datapoints around the same theme: improving expectations into FY26 and possible corporate events in 2026. It also included two different market-cap figures in different excerpts, suggesting different reference dates.

Flows, FII selling, and longer-cycle capex

One JPMorgan client note excerpt said the stock’s underperformance in a prior phase was more “flows driven” than due to deterioration in underlying businesses. It also said the March-quarter FII sell-down was -1.1%, described as the largest quarter-on-quarter sell-down in 10 years, and that aggregate FII holding stood at a 6.5-year low.

The same note referenced $15 billion of investments and capex across business verticals as being fully value accretive by FY25. It also said new energy is a multi-year opportunity, while not being material to the investment case for the next 12-18 months.

What investors are watching next

Across the excerpts, the watch-list was consistent: refining margins and O2C recovery, telecom tariff changes, retail growth trajectory, and milestones in new energy. Another recurring theme was the market’s focus on the timing and structure of a potential Jio IPO.

For the stock, the near-term takeaway from the provided text is that multiple brokerages kept positive ratings and issued targets clustered in the ₹1,650 to ₹1,820 range, while highlighting 2026 as an event-heavy year. The next set of updates are expected to come through future quarterly results and any formal communication on tariffs, IPO preparation, or commissioning progress in new energy.