Archive · 1 Oct 2026
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.
Nuvama maintained a Buy rating on Reliance Industries with a Rs 1,766 target price, implying about 45% upside.
The brokerage expects elevated gasoil and aviation turbine fuel refining margins to support Reliance’s oil-to-chemicals business.
Consolidated EBITDA is estimated to rise 17% year-on-year to Rs 53,700 crore in Q2FY27, with PAT projected at Rs 209 billion.
Oil-to-chemicals EBITDA is forecast to increase 38% year-on-year to Rs 20,700 crore, while crude throughput may rise to about 20 million tonnes.
Digital EBITDA is expected to grow 16%, although retail EBITDA may decline 1%; Nuvama also sees long-term potential from Reliance’s New Energy business.
- Who
- Nuvama and Reliance Industries.
- What
- Nuvama forecast stronger Reliance earnings and assigned the stock a Buy rating with a Rs 1,766 target price.
- When
- The forecast concerns Q2FY27; the article does not provide a specific calendar date.
- Why
- Nuvama expects record fuel refining margins, tight supplies, digital-business growth and longer-term potential from New Energy to support Reliance.
- Brokerage view
- Buy rating from Nuvama
- Target price
- Rs 1,766, implying about 45% upside
- Q2FY27 consolidated EBITDA
- Estimated at Rs 53,700 crore, up 17% year-on-year
- Q2FY27 PAT
- Estimated at Rs 209 billion, up 15% year-on-year
- Oil-to-chemicals EBITDA
- Estimated at Rs 20,700 crore, up 38% year-on-year
- Digital EBITDA
- Estimated at Rs 21,900 crore, up 16% year-on-year
- Net debt
- Reported at around Rs 1.23 trillion