Reliance Industries Shares Rally to Four-Month Peak
Shares of Reliance Industries Limited (RIL), India's most valuable company by market capitalisation, witnessed a significant surge of nearly 2% during intraday trading on Thursday, November 20. The stock climbed to a four-month high of ₹1,542 per share, reflecting growing investor confidence in the conglomerate's diversified business portfolio.
The upward movement came as leading financial analysts maintained their optimistic outlook on the company's future prospects. The positive sentiment stems from expectations of improved earnings from its oil-to-chemicals (O2C) division, coupled with anticipated gains from its emerging new energy and battery manufacturing initiatives.
Analysts Maintain Bullish Stance with Revised Targets
Global financial services firm UBS has reaffirmed its 'buy' rating on Reliance Industries with a price target of ₹1,820. The brokerage emphasized that strength in refining operations is expected to drive substantial improvement in the company's O2C earnings. UBS noted that the Singapore benchmark doesn't fully capture the current margins being enjoyed by diesel-heavy refiners like Reliance.
Adding to the positive outlook, UBS highlighted that Reliance's diversified crude oil sourcing strategy provides a significant advantage by limiting the impact of ongoing geopolitical uncertainties on its operations. The brokerage projects that O2C EBITDA will show remarkable growth, increasing from ₹295 billion in the first half of FY26 to ₹340 billion in the second half, and further surging to ₹648 billion in FY27.
Domestic Brokerage Backs New Energy Ventures
Domestic brokerage firm Motilal Oswal also maintained its 'buy' recommendation on RIL shares with a target price of ₹1,765 per piece. The firm has increased its valuation of Reliance's new energy business to ₹174 per share after incorporating the value of the battery manufacturing segment.
According to Motilal Oswal's analysis, Reliance is progressing steadily toward commissioning its first battery giga-factory in Jamnagar, Gujarat, in early calendar year 2026. The initial facility will boast an impressive annual production capacity of 40 GWh for battery energy storage systems.
The brokerage reported that significant progress has already been achieved in construction and engineering works, with production line equipment scheduled for installation in the near future. Over the next couple of years, output from the giga-factory is expected to be primarily used for captive requirements, supporting Reliance's ambitious plan to establish 100 GW of renewable power generation capacity.
Market Context and Future Outlook
The timing of Reliance's battery manufacturing initiative aligns perfectly with India's growing energy storage requirements. As per the National Electricity Plan (2023) prepared by the Central Electricity Authority (CEA), India's energy storage capacity requirement is projected to reach 82.4 GWh in FY27. This comprises 47.7 GWh from pumped storage projects and 34.7 GWh from battery energy storage systems.
Reliance Industries share price has been demonstrating a strong upward trend since October, accumulating gains of nearly 14%. This performance has not only rewarded shareholders but has also provided crucial support to the broader Indian equity markets, helping maintain key psychological levels.
The recent rally has pushed Reliance's market capitalisation closer to the ₹21 lakh crore mark. The company had previously crossed this significant milestone in June last year, becoming the first Indian corporate to achieve this feat. At current levels, the stock is trading merely 4% below its all-time high of ₹1,608.80 per share, which it reached in July 2024.
The combined optimism from both domestic and international analysts, backed by strong fundamentals across traditional and new energy businesses, positions Reliance Industries for continued growth momentum in the coming quarters.
