Reliance is making India’s ‘AI Fortress’!
Mukesh Ambani, the country’s largest business tycoon Mukesh Ambani, is once again preparing to take his company Reliance Industries Limited (RIL) to new heights. This time his bet is new energy and a strong combination of Artificial Intelligence (AI). According to the global brokerage firm Morgan Stanley, if this strategy is successful, Reliance shareholders can benefit by up to $ 60 billion (about Rs 50 lakh crore).
Jamnagar is becoming AI’s powerhouse
Reliance Industries is preparing to completely change its Jamnagar Energy Complex. This complex will now not only be a hub of oil and gas, but it is going to become the biggest center of AI infrastructure in India. The latest report by Morgan Stanley states that Reliance is using its Jamnagar plant for new energy and AI. The company is planning to create a data center capacity of 1 GW (GW) here, which will be equipped with NVIDIA’s latest blackwell chips.
Reliance says that his new energy plan is going to affect much larger, more transformative and global level than ever. The company is preparing to start AI Infrastructure in Jamnagar in the next two years. In this project, the power generation of Jamnagar will be used to power the data centers, chemicals and refinance. Morgan Stanley estimates that about 6,78,000 B100 chips will be required for the 1 GW data center. If Reliance 200 MW keeps for its internal use, it will still need 1,35,000 chips.
When this project will be fully scale up, ie after 4-5 years, then a 1.3 GW round-the-clock power will be required to run 1 GW Data Center. This is a mega project that can take Reliance not only in India but also in the Global AI race.
Reliance Industries Head Mukesh Ambani
Reliance’s big jump in AI
Reliance made it clear in the earning call of her third quarter (Q3Fy25) that she is going to play a big bet in the field of AI. The company is not only using AI extensively in its business process, but is also working towards preparing a strong AI infrastructure for the whole country. Reliance’s focus is to fully integrate AI in all its group processes. That is, whether it is refining, retail or telecom, AI will be seen everywhere.
Morgan Stanley says that this step of Reliance can prove to be a game-changer. A large amount of electricity is required to run AI data centers around the world, and Reliance is going to make the energy of its Jamnagar plant its biggest weapon. This will not only reduce the cost of the company, but it can also create a strong hold in the global AI market.
Reliance in the stock market
Reliance shares have taken a great bounce of 26% this year. The trust of investors is increasing on this new strategy of Mukesh Ambani. Morgan Stanley has given a ‘overweight’ rating on Reliance and has fixed its target price of Rs 1,617 per share. They estimate that Reliance’s earnings between 2025 and 2028 will increase at an annual rate of 14%.
However, Morgan Stanley also said that the focus of investors is not much on Reliance’s AI investments, because there is not yet complete clarity regarding the impact on its earnings. But the rest of the energy and power companies at the global level have already been re-vetted on the basis of the AI theme, even if its impact in their earnings is not visible yet. The same opportunity is for Reliance to cash this theme.
Morgan Stanley has valued Reliance’s new energy business on 3x P/B multiple. The company is investing heavily in solar supply chain, battery capacity expansion and green hydrogen capacity. If everything goes well, in the bull case, Reliance’s share price can go up to Rs 2,034, while in the beer case it can remain up to Rs 1,210.
Reliance’s new energy schemes are not limited to India only. The vision of the company is global, and it is preparing to establish its own in the field of AI and new energy worldwide. The transformation of Jamnagar is its first major link.
Mukesh Ambani
Boys will be boosted by quarterly results
Reliance’s upcoming first quarter results can also bring good news for investors. Morgan Stanley estimates that the oil-to-chemicals (O2C) business will earn well despite the strength of global fuel margins and refinery maintenance. The retail segment is expected to have an annual revenue growth and stable margin of 17%.
65 lakh new subscribers are estimated to be added to the telecom segment, as well as a slight increase in the ARPU. Overall, Reliance’s consolidated Ebitda is expected to increase 16% and consolidated earnings 27% annually.
Morgan Stanley also said that the prices of global solar panels have now stabilized. In 2024, many big players became FCF-negative, but now the supply chain is seeing discipline in prices and investment. The results of the June 2025 quarter will increase the trust of investors.
Reliance’s strength, O2C, Retail and Telecom
Reliance’s earnings are supporting three big pillars- O2C, Retail and Telecom. The margin will be good due to the low price of raw materials in the O2C segment and strong domestic demand. The company will benefit from strong growth of consumer brands in retail and tariff hike in telecom. This new bet of Mukesh Ambani will not only take Reliance to new heights, but will also make India a big player in global AI and new energy field. This is an opportunity for investors that they will not want to miss.