The brokerage believes the company is well-positioned to benefit from continued strength in refining and petrochemical spreads, while a weaker rupee could provide an additional earnings tailwind.
The brokerage also said that Reliance’s valuation remains attractive, particularly as its new energy ventures move closer to commissioning. JPMorgan expects these businesses to emerge as a key catalyst for the stock through FY27.
In its analysis of Reliance’s latest annual report, the brokerage highlighted that headline capital expenditure rose 10% year-on-year to ₹1.4 lakh crore in FY26.However, capex reflected in cash flow statements declined 11% to ₹1.2 lakh crore, which JPMorgan attributed to timing differences in payments and the impact of capitalised foreign exchange translation losses.
The report also showed a shift in spending priorities across business segments.
Capital expenditure in the oil-to-chemicals (O2C) segment increased to ₹32,400 crore during FY26, while retail capex declined significantly to ₹21,100 crore. The largest share of investments was allocated to the unallocated segment, where spending surged to ₹55,900 crore from ₹31,200 crore in the previous year.
Analyst sentiment on the stock remains overwhelmingly positive. Of the 33 analysts tracking Reliance Industries, 32 have a ‘Buy’ recommendation, while only one analyst rates the stock a ‘Sell’.
Shares of Reliance Industries ended Monday’s session marginally lower at ₹1,320.20. Despite recent gains, the stock remains down about 16% so far in 2026.
