Synopsis : Reliance Industries’ 49th Annual General Meeting (AGM) reinforced its long-term growth roadmap across telecom, artificial intelligence, retail, consumer brands and clean energy. The filing of Jio Platforms’ draft prospectus for an IPO, coupled with progress in AI infrastructure and New Energy, has kept brokerages bullish on the stock. Jefferies, Nomura and Motilal Oswal continue to maintain ‘Buy’ ratings, seeing upside of up to 28% from current levels.
Reliance Industries used its 49th Annual General Meeting to showcase what could become the next chapter of growth for the conglomerate. While investors were expecting updates on Jio’s listing plans and New Energy projects, the company also unveiled a more detailed roadmap around artificial intelligence, consumer businesses and manufacturing expansion.
Brokerages largely came away from the event with their positive stance intact, arguing that the AGM strengthened the long-term investment case rather than fundamentally changing it.
Jefferies maintained its ‘Buy’ rating on Reliance Industries with a target price of Rs 1,675. Nomura retained its ‘Buy’ rating with a target of Rs 1,640, while Motilal Oswal Financial Services reiterated its ‘Buy’ recommendation with a target price of Rs 1,655.
Jio IPO moves closer to reality
The most significant announcement from the AGM was the progress on the proposed Jio Platforms IPO.
Reliance confirmed that Jio’s board had approved the Draft Red Herring Prospectus (DRHP) and filed it with SEBI. Subject to regulatory approvals, the listing is expected to take place by the end of 2026.
According to Nomura, the IPO will be structured as a 100% primary issue. Jio is expected to issue around 270 million shares, resulting in a dilution of approximately 2.9%. The proceeds are expected to be utilised primarily for debt reduction.
The IPO has become a central pillar of the value-unlocking narrative around Reliance Industries. Market estimates suggest Jio Platforms could command a valuation of approximately Rs 11-12 trillion, placing it among the most valuable telecom and digital businesses globally.
Motilal Oswal highlighted that Jio Platforms remains the biggest growth engine within the Reliance ecosystem, supported by tariff hikes, market share gains, broadband expansion and a growing digital services portfolio.
Jio continues to deliver strong operating performance
Jio remains one of the strongest-performing businesses within Reliance Industries.
The telecom operator ended FY26 with over 524 million subscribers, making it India's largest telecom company by customer base. More than 268 million users are already on its 5G network, and management has outlined plans to migrate the entire subscriber base to 5G over the coming years.
Jio's financial performance also remained robust. Revenue rose 14.6% year-on-year in FY26, while EBITDA increased nearly 19%. The business generated EBITDA margins of more than 50%, highlighting its scale advantages and operating efficiency.
The home broadband business also continues to gain traction. JioAirFiber has crossed 13 million connected homes and is adding tens of thousands of new connections every day.
Brokerages believe rising data consumption and future tariff increases could drive further growth in average revenue per user (ARPU) over the next several years.
Reliance Intelligence emerges as a new growth engine
Artificial intelligence was another major focus area during the AGM.
Reliance has now consolidated its AI ambitions under Reliance Intelligence, positioning the business as a long-term growth platform spanning infrastructure, enterprise services and consumer applications.
Jefferies noted that Reliance remains on track to commission the first phase of its AI-ready data centre capacity by the end of calendar year 2026. The company plans to leverage its extensive fibre network, access to renewable energy and large capital base to build India's sovereign AI infrastructure.
The planned AI ecosystem includes applications across healthcare, agriculture, education, retail and enterprise productivity.
Reliance is also working with global technology leaders including Google and Meta to develop AI services tailored for the Indian market. Partnerships involving Gemini and Llama-based models are expected to accelerate deployment across consumer and enterprise segments.
For investors, the AI initiative represents an additional growth option layered on top of telecom, retail and energy businesses.
Retail and FMCG strategy shifts toward manufacturing
Reliance Retail and Reliance Consumer Products (RCPL) were also key talking points at the AGM.
The company is increasingly positioning these businesses not just as retail networks but as manufacturing, sourcing and export platforms.
Jefferies highlighted that Reliance has already invested heavily in beverages and plans to invest significantly more across food processing, consumer products and supply chains. Food parks, agricultural sourcing clusters and manufacturing facilities are expected to become central to the strategy.
RCPL has set an ambitious goal of achieving annual revenue exceeding Rs 1 trillion by FY30. The company is rapidly scaling brands across beverages, staples and packaged consumer products.
Meanwhile, Reliance Retail continues to expand its reach across India. The business now serves hundreds of millions of customers through over 20,000 stores and a rapidly growing quick-commerce platform.
JioMart has emerged as one of the fastest-growing parts of the retail ecosystem, benefiting from higher order frequency and expanding geographic reach.
New Energy enters commercial phase
For several years, investors have viewed Reliance’s New Energy business as a long-term opportunity. The AGM provided clearer visibility on when these investments may begin generating revenue.
Reliance confirmed that its solar manufacturing facilities are ramping up production, while the first phase of its battery gigafactory is expected to be commissioned during the current year.
Jefferies expects commercial revenues from the New Energy segment to begin contributing from FY27 onwards.
The company’s long-term ambitions remain significant. Reliance aims to build a fully integrated solar manufacturing ecosystem while also scaling battery production and green hydrogen capabilities.
Large renewable energy projects in Gujarat’s Kutch region continue to progress, creating a foundation for future growth across clean energy and industrial decarbonisation.
Brokerages believe New Energy could eventually emerge as a major profit contributor, although meaningful earnings impact will likely take several years to materialise.
Legacy businesses continue to support expansion
While much of the attention was focused on new growth areas, Reliance’s traditional Oil-to-Chemicals (O2C) and upstream energy businesses continue to play a critical role.
These segments generate substantial cash flows that help fund investments across telecom, retail, AI and clean energy.
Jefferies pointed out that petrochemical margins have improved recently, supported by global supply disruptions and favourable market dynamics.
Reliance also continues to invest in higher-value downstream projects, specialty materials and chemical integration initiatives.
The energy and O2C businesses therefore remain important pillars supporting the broader growth strategy.
Why brokerages remain bullish
The positive stance from brokerages is based on a combination of visible growth catalysts and valuation support.
The Jio IPO provides a clear value-unlocking opportunity. AI infrastructure creates a new long-term growth platform. Retail and consumer businesses continue to scale rapidly, while New Energy is approaching commercialisation.
Jefferies expects strong earnings growth across retail and energy businesses over the next few years. Nomura believes New Energy, AI and a future retail listing could become major catalysts after the Jio IPO. Motilal Oswal continues to see steady earnings growth across the broader Reliance ecosystem.
Collectively, these businesses provide multiple avenues for value creation rather than reliance on a single growth driver.
Conclusion
Reliance Industries used its AGM to reinforce a simple message: the company is building several large businesses simultaneously.
The Jio IPO has moved closer to reality, artificial intelligence is transitioning from concept to execution, New Energy projects are nearing commercialisation, and retail operations are evolving into manufacturing and export platforms.
For investors, the key question is no longer whether Reliance has enough growth opportunities. Instead, the focus is shifting toward how quickly these new businesses can contribute meaningfully to earnings and valuation.
Based on the latest updates, leading brokerages remain convinced that the next phase of Reliance’s growth story is only beginning.
Disclaimer : The stock ratings, target prices, forecasts and estimates mentioned in this article are based on reports published by institutional brokerages including Jefferies, Nomura and Motilal Oswal Financial Services. These views are their own and do not constitute investment advice, a recommendation, or a solicitation to buy, sell or hold any security. Investments in equities are subject to market risks, business execution risks and regulatory uncertainties. Investors should conduct their own research and consult a SEBI-registered investment advisor or qualified financial professional before making any investment decisions.
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