RIL Stock Jumps to 4-Month Peak on Bullish Outlook for O2C, Battery Biz

RIL stock reached a four-month high, driven by a bullish analyst outlook. Key factors include stronger earnings expectations from its oil-to-chemicals (O2C) business, which benefits from high refining margins and a diverse crude sourcing strategy.

Reliance Industries Ltd (RIL) climbed to a four-month high on Thursday, with the stock rising nearly 2% to Rs 1,542 in intraday trade. The uptrend comes as analysts reaffirm their bullish stance on the conglomerate, backed by stronger earnings expectations from its oil-to-chemicals (O2C) business and rapid progress in its new energy ventures.

The stock has been on a steady upward trajectory since October, gaining almost 14% in the past two months. The rally has also helped prop up broader markets, with Reliance inching closer to the Rs 21 lakh crore market cap mark, a milestone it first crossed in June last year.

Refining Strength to Power O2C Growth

UBS reiterated its buy rating on the stock with a target price of Rs 1,820, citing improving refining margins as a key catalyst. The brokerage said that the Singapore benchmark does not fully capture the strong margins diesel-heavy refiners like Reliance currently enjoy.

It also noted that Reliance's diverse crude sourcing strategy is helping cushion the company from global geopolitical tensions.

UBS expects Reliance's O2C EBITDA to jump from Rs 295 billion in the first half of FY26 to Rs 340 billion in the second. By FY27, O2C EBITDA could soar to Rs 648 billion, according to its projections.

Battery Giga-Factory Boosts New Energy Story

Motilal Oswal also maintained a buy rating with a target of Rs 1,765, raising its valuation for the company's new energy business as it factors in the emerging battery manufacturing vertical.

According to the brokerage, Reliance is on track to commission its first battery giga-factory in Jamnagar by early 2026. The plant will initially have a 40 GWh annual capacity for battery energy storage, much of which is likely to be used for Reliance's own clean energy expansion plans, including its ambition to set up 100 GW of renewable power capacity.

With India's energy storage needs projected to touch 82.4 GWh by FY27, including nearly 35 GWh from battery systems — analysts believe Reliance is entering a high-demand sector at the right time.

Stock Nears Record High

With the latest rally, Reliance shares are now just 4% shy of their all-time high of Rs 1,608.80, touched in July 2024.