Reliance Industries, a powerhouse in the oil-to-telecom sector, has delivered impressive Q4 earnings that exceeded market expectations. The conglomerate showcased robust EBITDA across its various segments, signaling strong operational performance. With new energy initiatives emerging as a vital growth driver, analysts remain optimistic about the company’s future. As of this morning, Reliance’s share price saw a 2% increase, reaching ₹1,326.40.

Positive Earnings Report Boosts Investor Confidence

Reliance Industries reported a net profit increase of 2.4%, amounting to ₹19,407 crore for Q4 FY25. This growth was bolstered by a revenue spike of 8.8%, totaling ₹2.88 lakh crore, driven by strong performances in its Jio, retail, and oil-to-chemicals divisions. The consolidated EBITDA also rose by 3.6% to a record ₹48,737 crore, reinforcing the company’s solid financial footing.

Brokerage Insights on Reliance Industries Performance

CLSA’s Optimistic Outlook

Brokerage firm CLSA has given Reliance Industries an ‘Outperform’ rating, setting a target price of ₹1,650. They noted that the company’s net profit slightly surpassed expectations for the quarter. Management has indicated a return to robust growth for Reliance Retail starting in the first quarter of the 2025-26 fiscal year. Notably, the company is venturing into quick commerce with a commitment to delivering within 30 minutes without any hidden fees.

JPMorgan’s Support for Retail Growth

JPMorgan also maintains an ‘Overweight’ rating on Reliance, with a target price of ₹1,530. They highlighted a 16% year-on-year growth in Reliance Retail as a significant positive for Q4 FY25. The favorable valuations suggest potential for further share price appreciation in the near future.

Macquarie Sees Growth Potential

Macquarie has rated Reliance Industries as ‘Outperform’ with a target price of ₹1,500, suggesting that the company is at a pivotal growth juncture. They emphasized that Reliance Jio was a major contributor to the increase in group EBIT. The retail segment’s revenue growth momentum improved significantly, jumping from 3% in the first half of FY25 to 16% in Q4 FY25.

New Energy Ventures Capture Attention

Nuvama’s Green Energy Projections

Nuvama Institutional Equities has noted that the share of net profit from new energy could rise to 12% by FY30. Chairman Mukesh Ambani anticipates that profits from the new energy sector will match those from oil and chemicals by FY29-31. They predict that this initiative will contribute over 50% to the consolidated profit after tax, providing substantial value due to advancements in clean technology. Nuvama maintains a ‘Buy’ rating with a target price of ₹1,708, highlighting the potential of Heterojunction solar cells in the domestic market.

Nomura’s Continued Confidence

Nomura has reaffirmed its ‘Buy’ rating and slightly adjusted its target price to ₹1,650 from ₹1,600. They consider Reliance Industries a top pick in India’s energy sector. The firm believes that growth will be driven by the expansion of the new energy business, potential tariff increases for Jio, and the upcoming listing of Jio, which could unlock additional value for the conglomerate. Despite trimming their EBITDA estimates for FY26-27 by 1-2%, they remain optimistic about the company’s growth trajectory.

Conclusion

Reliance Industries has showcased a commendable performance in Q4 FY25, attracting positive attention from various brokerage firms. With a strong net profit and revenue increase, along with promising ventures in new energy and retail, the company is poised for sustained growth. Investors and analysts alike are watching closely as Reliance continues to navigate its multifaceted business landscape.