Ambani Group Stock to Buy Now for an Upside of 17%; Recommended by Trade Brains Portal
Trade Brains Portal has recommended a “BUY” call on India’s largest private sector company with an upside potential of 16.71%. India's diversified industrial and consumer ecosystem serves as a vital pillar of national economic growth, driven by expanding digital connectivity, rapid retail penetration, energy transition initiatives, and rising domestic consumer demand across diverse consumption baskets.
The recommended company, Reliance Industries Limited (RIL), is India’s largest private sector enterprise, touching millions of households through its extensive portfolio spanning oil to chemicals, digital services, retail, FMCG, media, and new energy.
Operating world-class manufacturing-integrated complexes, nationwide telecom networks serving 542.4 million subscribers, and a retail footprint of 19,947 stores, the company leverages science-backed innovations, proprietary technologies, robust supply chain integration, and strategic market expansion to deliver market leadership, capital efficiency, sustainable value creation, and long-term financial performance.
More targets from Trade Brains Portal: Defence Stock to Buy With an Upside Potential of 20%
Why it’s recommended:
Record Financial Performance Across Segments
Reliance delivered its strongest quarter ever in Q2 FY27, driven by robust contributions across its core business units. Overall revenue surged 28% year-on-year to Rs 3,62,268 crore, supported by record operational earnings (EBITDA) of Rs 62,409 crore, up 24% year-on-year. Driven by this operational strength, Net Profit (PAT) expanded 34% to a record Rs 29,550 crore. Alongside this top-line expansion, financial stability remained as net debt to EBITDA eased to 0.47x.
Oil-to-Chemicals Segment Surges to New Heights
The Oil-to-Chemicals (O2C) segment delivered extraordinary performance, with EBITDA jumping 68% year-on-year and 48% sequentially to a record Rs 25,203 crore. Segment revenue rose 44% to Rs 2,31,601 crore, while operating margin expanded by 160 bps to 10.9%. With Brent crude at $97/bbl, diesel and jet cracks rose 3.5x and 3.7x year-on-year, respectively, while gasoline cracks tripled. The ethane-naphtha cracking advantage widened to $557/MT, and polyester chain margins rose 33%. Record crude runs of 20.6 MMT were achieved despite Strait of Hormuz disruptions, supported by domestic diesel and gasoline demand growth of 7.5% and 8.5%. However, margins were partially capped by the SAED levy, crude premiums, high freight costs, and fuel under-recovery.
Digital Services and Telecom Scale Up Seamlessly
Digital Services continued its steady upward trajectory, with EBITDA rising 18% to Rs 22,223 crore. Jio Platforms posted revenue growth of 11% to Rs 40,475 crore and an EBITDA increase of 17% to Rs 21,879 crore, maintaining a healthy 54% margin following India's largest IPO of Rs 30,188 crore. Jio’s customer base expanded to 542.4 million (up 36 million year-on-year), including 300 million 5G users (up 66 million) and 30 million broadband homes (up 7.3 million). Average data usage grew 14% to 44.2 GB per month per user, while ARPU rose 3.5% to Rs 218.8. In the first half of the year, EBITDA less capex nearly doubled, rising 98% to Rs 32,130 crore.
More targets from Trade Brains Portal: FMCG Stock to Buy Now for an Upside of 15%
Retail Operations Expand Physical and Digital Reach
In the absence of a festive season in the quarter, Retail gross revenue grew 6.4% year-on-year to Rs 91,716 crore. The registered customer base crossed 400 million (up 10%), while transaction volumes increased by 7%. The segment opened 303 new stores, bringing the total footprint to 19,947 stores across more than 7,000 towns, alongside ongoing exits from underperforming locations. EBITDA before a Rs 108 crore one-time charge, stood at Rs 6,228 crore, with margins contracting 120 bps to 7.8% due to digital commerce investments, absorbed input-cost inflation, and the festive season shift to Q3. Grocery B2C online revenue rose 42%, gaining 270 bps in online market share, with management targeting FY28-FY29 to fully convert this scale into value.
Upstream Oil and Gas Maintains Steady Earnings
The upstream Oil and Gas segment recorded steady revenue of Rs 6,020 crore, while EBITDA slipped 2.0% to Rs 4,901 crore. Operating margins contracted by 120 bps to 81.4%, primarily due to higher government levies. Overall KG-D6 production declined 9%, though this was partially offset by higher realisations across oil, condensate, and CBM. To support future field output, a deepwater rig has returned to the KG-D6 block for workovers and drilling of new wells.
Consumer Packaged Goods Unlock Rapid Expansion
Reliance Consumer Products Limited (RCPL) demonstrated swift top-line scaling, with gross revenue growing 1.6x to Rs 8,266 crore, taking H1 revenue to Rs 16,900 crore (1.8x year-on-year). Beverage sales expanded 2.1x, establishing RCPL as the third-largest non-alcoholic ready-to-drink player in India. The Campa brand crossed Rs 5,250 crore in H1 sales alone, surpassing 90% of its total FY26 sales. Daily essentials grew 1.7x to approximately Rs 7,000 crore, led by Independence and Good Life in dry fruits, edible oils, and pulses.
More targets from Trade Brains Portal: Large Cap Stock to Buy Now for an Upside of 19%
Globalising Products and Building Future Capacity
To sustain its expansion, RCPL initiated work on 6 integrated food and beverage greenfield manufacturing plants and added high-speed beverage production lines. Internationally, Campa was launched in Coles and Woolworths in Australia, backed by local production setups in Kenya, the UAE, Oman, and Malaysia. The consumer business also entered the ice cream segment, initiated home and personal care development through the Glimmer brand, and established biscuits as a core focus category.
Media and Digital Entertainment Adapt to Market Shifts
JioStar revenue rose 10% to Rs 6,806 crore, though overall EBITDA fell 14% to Rs 1,502 crore, with margin contracting 600 bps to 22.1%. Operational EBITDA declined 11% to Rs 1,372 crore, while investment income fell 36% to Rs 130 crore, taking PBT down 14% to Rs 1,139 crore. JioHotstar reached 440 million monthly active users (up 10% year-on-year), conversational discovery users grew 75% sequentially, and food ordering was integrated directly into the entertainment platform. International launches were executed in Singapore, the UK, and Canada. Digital viewership for the Premier League grew 25%, and India's cricket series rose 12%, with management noting early signs of stronger monetisation for marquee properties in H2.
Expanding Solar and Energy Storage Operations
In the New Energy segment, solar module capacity currently stands at over 6 GW and is expected to reach 20 GW early next year. Solar cell manufacturing capacity is currently at 5 GW and is scheduled to expand to 20 GW in H1 next year. Additionally, a battery pack manufacturing facility with a capacity of up to 40 GWh is set to be commissioned within the next half-year.
Strong Long-Term Outlook and Future Roadmap
Management expects H1 FY27 performance to track an annualised O2C EBITDA of over Rs 80,000 crore. High-teen growth visibility remains intact for Jio, while online investments in Retail are projected to turn accretive starting next year. The New Energy business is positioned to begin contributing directly to overall earnings from FY28 onwards.
More targets from Trade Brains Portal: SBI Group Stock to Buy Now for an Upside of 24%
Financial Track Record and Outlook
Over the last three years, Reliance maintained strong financial momentum. Operating revenue grew at a 6.5% CAGR to Rs 10,75,675 crore, while net profit expanded at a 9% CAGR to Rs 95,754 crore. A 0.5% drop in materials consumed helped manage costs despite rising trade purchases. Balance sheet growth was robust, with total assets rising at an 11% CAGR to Rs 21,78,140 crore. Leverage improved as net debt-to-EBITDA eased to 0.47x in H1 FY27, backed by strong cash reserves of Rs 1,45,977 crore supporting annual capex and steady dividends.
About the Company
Reliance Industries Limited is a diversified Indian conglomerate spanning oil to chemicals, oil and gas, digital services, retail, FMCG, media, and new energy. Jio serves 542.4 million customers, including 300 million on 5G and 30 million broadband homes, while running AirFiber, the world’s largest FWA service. Reliance Retail operates 19,947 stores across 7,000+ towns with over 400 million registered customers. JioHotstar reaches 440 million monthly active users. Consumer brands include Campa and Independence, alongside gigawatt-scale solar and battery manufacturing.
What's recommended?
With a market capitalisation of Rs. 17,74,116 crore, Reliance Industries Limited (RIL) is currently trading at a price of Rs 1,311 per share. Trade Brains Portal has recommended a "Buy" call on the stock with a target price of Rs 1,530 per share, implying an upside potential of 16.71% from its current trading price. The company's future growth is expected to be driven by elevated O2C earnings, high-teen Jio growth, Retail’s online scale turning accretive, and New Energy earnings from FY28, which together are anticipated to boost EBITDA growth in the upcoming quarter.