Reliance Industries (RIL) could be approaching a turning point, with the proposed listing of Jio Platforms emerging as a potential trigger for a re-rating of the conglomerate’s shares. Religare Broking has recommended buying the stock, citing the prospect of value unlocking through the Jio IPO, improving cash flows and growth opportunities across its businesses.
In a strategic research note dated October 13, 2026, Religare assigned a target price of ₹1,696 per share to Reliance Industries, compared with its closing reference price of ₹1,156 as of October 12. This implies a potential upside of 46.7%, according to the brokerage.
“We maintain a conviction BUY rating on Reliance Industries Ltd. with a Target Price of Rs. 1,696 per share. The convergence of a 2-year price and time correction, impending Jio price discovery, balance sheet optimization, and multi-engine earnings compounding creates one of the most compelling risk-reward setups in the market today. We advocate initiating exposure at current levels and accumulating on any market-driven corrections,” suggested the brokerage.
The recommendation comes after an extended period of consolidation in the stock. Religare believes the correction has allowed operating earnings to catch up with the share price, creating a more favourable risk-reward opportunity ahead of the proposed Jio Platforms listing.
Reliance Industries shares have remained under pressure, falling to its 52-week low of ₹1,152.30 today. It has now declined around 28% from its 52-week high of ₹1,611.20 in January 2026. It has declined 5% over the past week, 8% in one month, 10.5% in three months, 12% in six months and 16% over the past year.
It further pointed out that with the stock trading near the lower boundary of its multi-year range, downside risk is well-protected while upside optionality is underpinned by an approaching corporate catalyst.
The brokerage suggests building exposure in RIL at current levels enables investors to secure full participation in Jio’s value discovery while retaining 100% upside in RIL’s other mega-engines—Retail, O2C, and New Energy.
Waiting for the official debut trading day risks missing the primary leg of multiple expansion, it added
Jio Platforms IPO, debt reduction could drive RIL re-rating
Religare’s investment thesis centres on the proposed Jio Platforms IPO, which could help unlock value in Reliance Industries by giving investors an independent valuation of its digital business. The brokerage believes this could narrow the holding-company discount and support a re-rating of RIL shares.
Religare said the listing would provide an “independent, quoted market price”, improving transparency around the group’s sum-of-the-parts valuation.
Jio reported FY26 revenue from operations of ₹1,46,885 crore, EBITDA of ₹76,255 crore and net profit of ₹30,049 crore. Its EBITDA margin stood at 51.9%, with an active subscriber base of over 524 million.
“Jio has successfully transitioned from a capital-heavy telecom rollout to a high-margin digital monetization engine. With heavy 5G network capex largely complete, capital intensity is rapidly moderating. Earnings compounding is propelled by steady ARPU trajectory, 4G-to-5G premiumization, expanding data throughput, and enterprise cloud/AI digital services,” the brokerage noted.
Lower capital expenditure could improve free cash flow and create greater flexibility for debt repayment and future investments.
Religare also highlighted the proposed use of up to ₹27,500 crore from Jio Platforms’ IPO proceeds to repay or prepay borrowings at Reliance Jio Infocomm. Lower interest costs could improve net profit margins, strengthen cash flows and support RIL’s balance sheet.
Retail, oil-to-chemicals and New Energy add to growth prospects
Beyond Jio, Religare sees several other businesses contributing to Reliance Industries’ growth prospects. Reliance Retail could benefit from store network expansion and digital commerce, while the oil-to-chemicals (O2C) business could provide cash flows through integrated refining and petrochemicals operations.
The brokerage also highlighted the New Energy ecosystem, including planned investments in solar power, energy storage and hydrogen.
Religare outlined a phased timeline for the potential catalysts. Over the next six months, the filing of Jio’s draft red herring prospectus and institutional investor participation could improve visibility into its valuation. Over six to 18 months, potential ARPU increases and debt reduction could support earnings growth. Retail operating leverage and New Energy expansion could become more significant over the following 18 to 36 months.
Based on these expectations, Religare reiterated its Buy recommendation and advised investors to consider building exposure before the listing, while also “accumulating on any market-driven corrections”.
Jio IPO Details
Grey market trading in Reliance Jio Platforms has picked up ahead of its anticipated IPO, with the unofficial grey market premium (GMP) at ₹170-180 per share. This implies a potential listing gain of around 15-16% over the reported upper price of ₹1,119, although the official price band is yet to be announced.
Reuters reported that Jio Platforms is likely to price its shares at ₹1,065-1,119 apiece, valuing the company at around ₹10.3 lakh crore, or $106 billion. At the upper end, the IPO is expected to raise ₹30,200 crore, potentially making it India’s biggest public issue, surpassing Hyundai Motor India’s $2.9 billion IPO in 2024.
The issue is expected to open for anchor investors on October 19, followed by public subscription from October 21 to October 23, 2026. Jio Platforms is expected to issue up to 27 crore fresh equity shares, with no offer-for-sale component.
According to the draft papers, up to ₹27,500 crore of the net proceeds will be used to repay or prepay borrowings, primarily linked to Reliance Jio Infocomm, while the remainder will go towards general corporate purposes.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
