JPMorgan has reiterated its overweight stance on Reliance Industries with a target price of ₹1,727, stating that the stock continues to offer an attractive risk-reward profile heading into 2026 despite a strong run-up this year. The brokerage highlighted that Reliance has already gained 27% year-to-date, outperforming the Nifty 50 by 17%, yet valuations remain favourable relative to peers such as Avenue Supermart and Bharti Airtel. According to JPMorgan, RIL still trades at roughly a 15% holding-company discount to comparable consumer and telecom peers, leaving meaningful room for re-rating.
The brokerage noted that the earnings drag from weak refining and petrochemical performance in FY24 and FY25 is now behind the company, setting up a much stronger outlook for FY26 and beyond. JPMorgan believes the current refining strength provides potential for upward earnings revisions, especially given Reliance’s diesel-heavy configuration and strong real spreads. It also sees 2026 shaping up as a year rich in catalysts, including the possibility of a Jio IPO, tariff increases in telecom, commissioning progress in its new energy initiatives, and steadier retail growth.
JPMorgan’s positive bias into 2026 reflects confidence that multiple business verticals—energy, telecom, and retail—could support a more robust earnings cycle after two muted years.
Disclaimer: The views above are those of JPMorgan. Business Upturn does not endorse them. Please consult a financial advisor before making investment decisions.
