Nuvama Sees 45% Reliance Upside From Refining Strength

Nuvama is a brokerage that is optimistic about Reliance Industries.

It thinks Reliance could benefit because the prices of fuels like diesel and jet fuel are high compared with crude oil.

This difference is called the refining margin.

Nuvama expects these margins to remain strong because fuel supplies are tight.

It forecasts stronger profits for Reliance in the second quarter of fiscal 2027.

Reliance’s oil-to-chemicals business is expected to provide the biggest boost.

Its digital business may also grow as subscriber numbers and revenue per user increase.

However, the retail business may be slightly weaker than last year.

Nuvama also believes Reliance’s New Energy business could become an important future source of earnings.