RIL Share Price Target: After the profit of Reliance Industries declined by 22%, the leading brokerage house has reduced the target, but still there is hope of earning from the share. Know the new target…
Reliance Industries Share Price Target: The results of the first quarter (Q1) of the current financial year 2026-27 of the country’s largest company Reliance Industries (RIL) have come. A very shocking figure has emerged in the results. The company’s net profit has declined by 22% on an annual basis. But the surprising thing is that today on Monday, despite all-round weakness in the stock market, Reliance’s share strengthened by about 1% and reached a high of ₹ 1,341.20 and it remained among the top 5 gainers of Nifty 50. Despite falling profits, leading brokerage houses are completely bullish on this stock and have maintained ‘BUY’ rating. Let us know why the company’s profit decreased and why experts are still betting on it…
Why did Reliance’s profit decline?
Reliance Industries’ net profit in the first quarter declined by 22% to ₹20,946 crore from ₹26,994 crore last year. However, there is no weakness in the company’s core business behind this decline. Reliance’s profit has declined mainly due to a huge decline of 57% in ‘Other Income’. Last year, in the same quarter, the company had sold its stake in Asian Paints, which resulted in huge one-time profit. This time no such strong benefit was found. Despite the decline in profits, Reliance’s consolidated revenue has increased by 25% year-on-year to ₹ 3.40 lakh crore. At the same time, the company’s operating profit (EBITDA) has also increased by 10.1% to ₹ 54,067 crore.
Reliance Share Price Target: Why are experts bullish on Reliance share?
Veteran brokerage house Motilal Oswal believes that Reliance’s core business is extremely strong. The brokerage house has slightly reduced its 12-month target price on this stock to ₹ 1,550, which was earlier ₹ 1,690, but this new target also clearly indicates a huge profit of more than 17% from the current market price.
3 big reasons why experts are bullish on Reliance
1. Bumper recovery in energy and O2C business
There was a slight slowdown in Reliance’s retail business this quarter and its EBITDA fell by 2%. But the company’s energy, oil-to-chemicals (O2C) and exploration (E&P) businesses fully compensated for this. O2C segment operating profit grew 17% both quarterly and annually.
2. Reliance Jio will become the biggest growth engine
According to experts, Reliance Jio is going to be the biggest driver of growth for the company in the coming times. Jio alone can contribute about 85% to the company’s increasing profits between financial years 2026 and 2028. Jio’s earnings will increase rapidly due to increase in mobile tariffs (plans), home broadband and addition of new customers.
3. Debt will reduce, cash flow will increase
The brokerage house believes that Reliance’s biggest expenditure (Capex Peak) is now over. It is expected that the company will have a strong free cash flow of about ₹ 90,000 crore between FY 2026-28, which will reduce the company’s total debt rapidly.
How has Reliance Share been performing?
- Increase of about 1.8% in last 5 days
- Decline of about 5% in last 6 months
- Decline of about 7% in last 12 months
Should one buy Reliance shares or not?
Experts believe that after this decline in the last one year, Reliance shares are being sold at attractive valuations, which can be an excellent buying opportunity for the long term.
Disclaimer: The share price targets and views of brokerage firms given in this article are based only on their personal research. This is not investment advice in any way. Investing in the stock market is subject to risks. Before making any kind of investment, definitely consult your financial advisor.