Reliance Industries’ growth narrative is steadily shifting away from its legacy oil-to-chemicals (O2C) business toward consumer-facing verticals such as retail and telecom, with Motilal Oswal Financial Services (MOSL) pegging nearly 18 per cent upside in the stock as new drivers begin to take shape.
Reliance Industries is entering a new phase of growth, one that is increasingly defined by its consumer businesses rather than its traditional oil-to-chemicals operations. Following the company’s FY26 AGM announcements, MOSL has reiterated its ‘Buy’ rating with a target price of Rs 1,655, highlighting a transformation anchored by telecom, retail and emerging verticals such as AI, FMCG and new energy.
Created with AI. Errors are possibleThe brokerage flagged a shift in earnings drivers. MOSL noted that the RIL is “reinventing the O2C business to create secular growth revenue streams,” while simultaneously building out new engines that could power the next decade of expansion. Central to this strategy is the ambition “to more than double RIL’s consolidated EBITDA over the next five years,” a target that signals management’s confidence in scaling newer businesses.
The telecom and digital services arm is already emerging as the backbone of RIL’s earnings profile. MOSL estimates a significant valuation for the business, stating, “we ascribe an enterprise value of Rs 12 trillion (USD 128 billion) to JPL… implying an overall equity value of Rs 10.7 trillion.” This underscores the scale at which Jio is expected to contribute to the group’s future.
Growth visibility for Jio remains strong, supported by aggressive technology adoption. The company is targeting to “migrate all subscribers to 5G by 2030” while also expanding home broadband and enterprise services. At the same time, its push into artificial intelligence aims to “make AI accessible to everyone” and take India’s deep-tech capabilities global, reflecting a broader digital ambition beyond telecom.
Parallel to telecom, Reliance Retail is strengthening its position as a dominant consumer platform. From a base of over 20,000 stores, the business is evolving into a fully integrated omnichannel ecosystem, combining physical retail with digital platforms like JioMart and AJio.
MOSL highlights that the company is now moving deeper into manufacturing to gain greater control over its value chain.
The strategy involves expanding “from beverages and daily essentials to fresh produce, apparel, and consumer electronics,” thereby capturing a larger share of margins while reducing dependency on third-party sourcing.
The FMCG arm, Reliance Consumer Products (RCPL), is another key pillar. The company has reiterated its target to achieve “Rs 1 trillion in gross revenue by FY30,” positioning itself as a formidable challenger in India’s highly competitive consumer goods segment.
Notably, export-oriented growth is also being built into the consumer strategy. According to MOSL, Reliance is “building export capabilities for its consumer businesses, creating a potential new growth avenue beyond the Indian retail market.”
Beyond consumer businesses, RIL’s emerging focus areas, particularly new energy and artificial intelligence, are expected to add further depth to its growth profile. The company is aiming to accelerate commissioning in its energy vertical and begin generating revenues earlier than anticipated.
MOSL identifies these initiatives as part of “five major value creation pathways,” which also include scaling its digital intelligence capabilities and boosting exports to as much as USD 125–150 billion by 2032. These forward-looking investments are seen as critical to sustaining long-term earnings growth.
(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)
