Reliance Industries’ share price climbed nearly 2% on Thursday, hitting its highest level in about four months. Analysts say the rise is mainly because of improving conditions in its oil-to-chemicals (O2C) business and steady progress in its new-energy plans.
Brokerages expect the O2C segment, which includes refining and petrochemicals, to perform better in the coming months. Global refining margins have improved, and Reliance’s ability to source different types of crude oil gives it an advantage. Analysts believe this will help boost the company’s earnings in the second half of the financial year.
At the same time, Reliance’s new-energy business is gaining attention. The company is setting up a large battery giga-factory in Jamnagar, expected to be operational early next year. This factory will support Reliance’s long-term push into green technologies such as energy storage, solar manufacturing and clean fuels.
Brokerages remain optimistic. UBS has kept its “buy” rating and a target price of around ₹1,820 per share, citing the likely recovery in the O2C business. Motilal Oswal has also maintained a “buy” rating and raised its valuation of the new-energy segment, expecting it to contribute significantly in the future.
Analysts estimate that earnings from the O2C business could rise from about ₹29,500 crore in the first half of FY26 to nearly ₹34,000 crore in the second half.
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