Jefferies has reiterated its buy call on Reliance Industries (RIL) with a target price of ₹1,670, citing strength in the oil-to-chemicals (O2C) segment and improving visibility on group-level earnings growth. The brokerage said O2C profitability in the first half of FY26 to date is tracking 15% higher year-on-year, compared with its full-year forecast of 8%, driven by firm auto fuel margins.
It noted that the benefit from sourcing Russian crude, a key investor concern, is relatively limited at about 2.1% of consolidated FY27 EBITDA. At the same time, the impending IPO of Jio could bring tariff-related regulatory interventions, though Jefferies said the visibility of double-digit consolidated EBITDA growth in FY26 remains strong. With this backdrop, it believes the company’s EV/EBITDA multiple is ripe for inversion, offering upside potential from current levels.
Disclaimer: The views and recommendations made in this article are those of Jefferies. This article does not constitute investment advice. Investors should consult their financial advisors before making any investment decisions.
