Author: Aditya Pareek | EQMint | Market News
Reliance Industries Limited (RIL) extended its market momentum today, rising over 1.5% in early trade and touching a new 52-week high. The rally came after global brokerage firm JPMorgan reiterated its bullish stance on the conglomerate, citing strong earnings visibility and a favourable business trajectory heading into FY2026. The fresh enthusiasm from institutional research desks has sparked renewed optimism among investors, who view RIL as a defensive as well as high-growth play in the current market environment.
JPMorgan’s bullish view is driven primarily by three growth engines — telecom, retail, and new-energy — alongside stable and long-term contributions from Reliance’s oil-to-chemicals (O2C) segment. According to the firm, the combination of strong digital revenues, retail business expansion, and accelerating monetisation of the clean-energy portfolio may contribute materially to the company’s earnings trajectory over the next 12–24 months. Analysts noted that RIL’s diversified presence across high-growth consumer-technology segments gives it a resilience unmatched in the Indian markets.
Reliance Jio continues to be a major pillar of this optimism. With rising data consumption, premium plan adoption and expanding 5G rollout, telecom ARPU (average revenue per user) is expected to rise steadily. Analysts believe that profitability could improve as early 5G investments get absorbed and monetisation scales. In an environment where telecom tariffs are expected to rise over time, the Jio business is seen as a long-term margin contributor.
Retail, the company’s next growth engine, continues to expand aggressively across fashion, grocery, FMCG, electronics and e-commerce verticals. The brokerage highlighted steady same-store sales growth and increasing penetration in Tier 2 and Tier 3 cities, along with supply-chain efficiency that supports margin strength. Private-label products and digital retail integration are also expected to drive higher profitability going into 2026. For many analysts, the strength of the retail business is what differentiates Reliance from other digital-first giants globally.
The new-energy segment formed another big reason for JPMorgan’s bullish stance. Reliance has been building scale in solar manufacturing, energy storage, and green-hydrogen technology. While this business is still early-stage in terms of revenue contribution, its long-term potential aligns with India’s clean-energy transition and global decarbonisation goals. The brokerage believes the segment could unlock significant value from FY2026 onwards as commercial operations and partnerships gain momentum.
The O2C segment, long regarded as the backbone of Reliance, is expected to remain stable even as volatility continues in global energy markets. Softer crude prices and improving petrochemical spreads are likely to support earnings recovery in the coming quarters. While the segment may not lead the next phase of growth, it provides cash flow strength and cushions overall business cycles — a characteristic that long-term investors appreciate.
The stock’s price movement today reflects the market’s broad confidence in these multiple growth drivers. Breaking its previous high and touching a new 52-week peak signals heightened institutional activity and strong retail sentiment. Market participants are now watching whether the stock can build further momentum ahead of its next quarterly earnings update.
That said, the rally does not come without considerations. Some analysts advise monitoring capital expenditure levels in telecom and new energy, as high investment phases can temporarily weigh on free cash flow. In addition, competition in retail and telecom remains intense, although Reliance’s scale is widely viewed as a competitive advantage. Investors are also keeping an eye on global commodity trends due to the O2C segment’s sensitivity to international prices.
Still, the stock’s risk-reward ratio appears favourable based on current expectations. For short-term traders, the breakout to a fresh 52-week high indicates bullish technical sentiment, with momentum indicators supporting the uptrend. For long-term investors, the company’s earnings visibility and multi-sector growth profile offer a strong fundamental narrative extending into FY2026 and beyond.
Reliance Industries remains one of the most influential stocks in the Indian markets, and today’s rally underscores its ability to lead market sentiment. With increasing institutional endorsement and a balanced business portfolio spanning both traditional and next-generation growth sectors, the stock continues to be a preferred choice among investors seeking both stability and expansion.
The new 52-week high marks not just a milestone for the stock price but also reflects confidence in the strategic direction the company is pursuing. As the market looks ahead, the coming quarters will determine whether RIL can sustain its upward trajectory — but for now, the bullish tone is unmistakably strong.
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Disclaimer: This article is based on information available from public sources. It has not been reported by EQMint journalists. EQMint has compiled and presented the content for informational purposes only and does not guarantee its accuracy or completeness. Readers are advised to verify details independently before relying on them.
