Reliance Industries Ltd. (RIL) has emerged as a major focus for investors ahead of the proposed initial public offering (IPO) of Jio Platforms. Religare Broking has assigned a target price of ₹1,696 per share to Reliance Industries, indicating potential upside of approximately 47% from the reference price of ₹1,156 used in its October 2026 assessment. The brokerage believes a separate listing of Jio Platforms could unlock value in Reliance’s digital business and encourage investors to reassess the valuation of the wider conglomerate.
The investment thesis rests on several factors, including clearer market pricing for Jio Platforms, potential debt reduction, improving cash flows and growth opportunities across Reliance’s retail, oil-to-chemicals and new-energy businesses. However, the expected upside is a brokerage estimate rather than a guaranteed return. The outcome will depend on the final IPO terms, investor demand, Jio’s listed valuation and the financial performance of Reliance’s other business segments.
Key Takeaways
- Religare Broking has assigned Reliance Industries a target price of ₹1,696, implying approximately 46.7% upside from its reference price of ₹1,156.
- The proposed Jio Platforms IPO could make the digital business easier to value independently.
- Reuters has reported that Jio Platforms is targeting a valuation of around $106 billion for the proposed IPO.
- Up to ₹27,500 crore of the proposed issue’s net proceeds has been earmarked for repayment or prepayment of borrowings at Reliance Jio, according to reported offer-document details.
- Jio reported FY26 revenue from operations of ₹1,46,885 crore and net profit of ₹30,049 crore.
- The potential re-rating depends on IPO execution, valuation, debt reduction and performance across Reliance’s other businesses.
Religare’s Target Price Implies 47% Potential Upside
Religare Broking has maintained a Buy recommendation on Reliance Industries, arguing that the proposed Jio Platforms listing could become a significant catalyst for the company’s valuation.
| Particulars | Details |
|---|---|
| Brokerage | Religare Broking |
| Recommendation | Buy |
| Reliance Industries target price | ₹1,696 per share |
| Reference share price | ₹1,156 |
| Implied upside | Approximately 46.7% |
| Reference date | October 12, 2026 |
Source: Religare Broking, as reported by financial news publications. The target price and implied upside are estimates, not assured returns.
The calculation is based on the difference between the target price and the reference price. The implied upside would change if Reliance’s share price moves before an investor purchases the stock.
Religare’s positive view also reflects its assessment that Reliance has experienced a prolonged period of share-price consolidation. The brokerage believes that the proposed Jio listing, together with improvements in cash generation and the group’s other businesses, could provide fresh reasons for investors to reassess the stock.
Nevertheless, a low share price relative to a previous high does not automatically make a stock undervalued. Investors must consider earnings, business risks, capital requirements and the assumptions underlying the target price.
Why the Jio Platforms IPO Could Unlock Value
The central argument behind Religare’s recommendation is that Jio Platforms could receive a more transparent valuation once its shares trade independently on the stock market.
Reliance Industries operates several major businesses, including telecom and digital services, retail, oil-to-chemicals and new energy. Investors therefore have to assess the value of different businesses with distinct growth prospects, capital requirements and risk profiles.
This can create what analysts call a conglomerate discount or holding-company discount. It occurs when a diversified group trades at a lower valuation than the estimated combined value of its individual businesses and assets.
A separately listed Jio Platforms could help investors determine how much the market is willing to pay for the digital business. That price discovery would allow analysts to compare Jio’s market value with the value attributed to it within Reliance Industries.
If the independent valuation is higher than the value currently implied by Reliance’s share price, investors may reassess the parent company’s valuation.
However, the outcome is not automatic. A listing could also reveal that public-market investors are unwilling to pay the valuation expected by the parent company or existing shareholders. The effect on Reliance would depend on the final valuation, the stake retained by the parent and the market’s assessment of its remaining businesses.
Jio’s Proposed IPO and Valuation
Jio Platforms has been preparing for a public-market debut that could rank among India’s largest IPOs.
Reuters reported on October 9, 2026, that the company was targeting a valuation of approximately $106 billion for its proposed offering. The report described a potential fundraising amount of up to roughly ₹30,200 crore, subject to the final terms.
These figures should be treated as reported plans rather than confirmation that the IPO has completed or that every proposed term is final.
| IPO-related detail | Reported position |
|---|---|
| Company | Jio Platforms |
| Target valuation | Approximately $106 billion |
| Potential fundraising | Up to around ₹30,200 crore |
| Potential market impact | A separately traded valuation for Jio’s digital and telecom businesses |
| Status | Proposed IPO; final terms and outcome remain subject to official disclosures |
Source: Reuters reporting dated October 9, 2026. Figures may change when the company publishes final issue documents.
Jio Platforms brings together telecom connectivity and a wider range of digital services. Its business includes mobile services, fixed broadband, enterprise technology, cloud-related services and digital platforms.
The public offering would give investors a direct way to invest in this business rather than gaining exposure only through Reliance Industries.
The IPO could also help establish a clearer valuation benchmark for Jio compared with other listed telecom and digital businesses. However, investors will need to assess differences in business mix, profitability, growth, capital intensity and debt before making direct comparisons.
Debt Reduction Could Support Cash Flow
Another important element of the investment case is the proposed use of IPO proceeds to reduce borrowings at Reliance Jio Infocomm.
Reported offer-document details indicate that up to ₹27,500 crore of the net primary issue proceeds has been earmarked for prepayment or repayment of borrowings at the telecom subsidiary.
Debt reduction could lower interest expenses and improve financial flexibility. It may also allow the business to direct a greater share of future operating cash flow towards investment, shareholder returns or other strategic priorities.
The impact will depend on the amount of debt actually repaid, the interest rates on those borrowings and Jio’s future capital expenditure.
Telecom remains a capital-intensive industry. Operators must invest in network capacity, spectrum, technology upgrades and customer services. The transition towards 5G and the expansion of fixed broadband and enterprise offerings also require continued spending.
Consequently, debt reduction would be a potential positive rather than a guarantee of permanently lower capital requirements.
Jio’s Financial Performance Provides the Foundation
The proposed listing is significant partly because Jio has developed into a large operating business with substantial revenue and earnings.
According to reported FY26 figures, Jio Platforms recorded revenue from operations of ₹1,46,885 crore, EBITDA of ₹76,255 crore and net profit of ₹30,049 crore.
| Financial metric | FY26 reported figure |
|---|---|
| Revenue from operations | ₹1,46,885 crore |
| EBITDA | ₹76,255 crore |
| EBITDA margin | 51.9% |
| Net profit | ₹30,049 crore |
| Subscriber base | More than 524 million |
Source: FY26 financial figures cited in coverage of the proposed Jio Platforms IPO. Subscriber count refers to the reported base as of March 2026.
EBITDA, or earnings before interest, taxes, depreciation and amortisation, is a measure of operating performance before several financing and accounting costs. It is useful for assessing profitability but is not the same as free cash flow.
Jio’s future performance will depend on several factors, including average revenue per user (ARPU), subscriber retention, data consumption, tariff changes, enterprise services and network investment.
Higher ARPU can support revenue growth if subscribers pay more for services or move to higher-value plans. Enterprise cloud and digital services may provide additional opportunities beyond consumer telecom.
But competitive pressure, regulatory changes, customer affordability and the cost of network expansion remain important risks. The market valuation assigned to Jio will ultimately depend on the sustainability of its earnings and cash generation.
Reliance’s Other Businesses Remain Important
Although the Jio listing is the immediate catalyst in Religare’s thesis, Reliance Industries is not solely a telecom investment.
Retail
Reliance Retail operates across multiple consumer categories and distribution channels. Store expansion, digital commerce and improvements in operating efficiency could support growth.
However, retail performance depends on consumer spending, competition, inventory management and the profitability of individual formats. Expansion can also require substantial investment in stores, logistics and technology.
Oil-to-chemicals
Reliance’s oil-to-chemicals business remains an important part of the group’s operations and cash generation. Its performance is influenced by refining margins, petrochemical demand, feedstock costs and global commodity cycles.
Changes in international energy markets can affect profitability, making this segment different from the relatively recurring revenue model of telecom services.
New energy
Reliance has also been investing in new-energy opportunities, including solar manufacturing, battery storage and hydrogen-related initiatives.
These businesses may offer longer-term growth opportunities, but their contribution depends on execution, production capacity, technology, market demand and the economics of competing with established suppliers.
For investors, the key question is whether these businesses can deliver sustainable earnings growth without requiring more capital than anticipated.
What Could Prevent Reliance Shares From Reaching the Target?
Religare’s target price represents a positive scenario, but several factors could limit the potential upside.
1. IPO valuation disappointment: If Jio Platforms lists at a valuation below market expectations, the expected value-unlocking effect could be weaker.
2. Listing delays or changes: Changes to the IPO timetable, issue size or structure could affect investor sentiment and the timing of the proposed re-rating.
3. Broader market weakness: A decline in Indian equities or a shift away from large-cap stocks could weigh on Reliance even if its operating performance remains stable.
4. Telecom competition: Pricing pressure, subscriber trends and continuing network investment could affect Jio’s earnings and cash flow.
5. Retail and energy-sector risks: Weak consumer demand, lower refining margins or delays in new-energy projects could offset gains from the digital business.
6. Expectations already reflected in the price: Investors may begin pricing in the IPO catalyst before the listing. If the final outcome does not exceed expectations, the stock may fail to rise despite the event taking place.
The 47% figure should therefore be understood as the difference between the brokerage’s target and its reference price, not as a probability-adjusted forecast or a guaranteed gain.
The Bigger Picture
The proposed Jio Platforms IPO could be an important event for India’s primary market and for Reliance Industries shareholders. A separate listing would establish an independent public-market valuation for a business that has become a major part of Reliance’s growth story. It could also make the conglomerate’s overall valuation easier to analyse and potentially reduce the holding-company discount.
But value unlocking depends on what investors are willing to pay. A public listing does not automatically increase the underlying value of a business, and the final market valuation may differ from expectations. Debt reduction and operating growth could strengthen the investment case, while weaker earnings or an unfavourable market environment could limit the impact.
Looking Ahead
Investors will watch for official IPO documents, final valuation details, the proposed use of proceeds and the eventual listing timetable. The market will also assess how Jio’s valuation compares with other telecom and digital businesses and whether its profitability and cash generation justify the price. These developments will help determine whether the IPO becomes a meaningful catalyst for Reliance Industries.
For shareholders and prospective investors, the important distinction is between a brokerage’s upside estimate and the actual investment outcome. Religare’s ₹1,696 target reflects its positive assessment of Jio’s potential listing and Reliance’s wider business portfolio. Investors should evaluate the assumptions behind that target, consider the risks to each business segment and make decisions based on their own financial objectives and risk tolerance.
Frequently Asked Questions
1. What is Religare’s target price for Reliance Industries?
Religare Broking has assigned a target price of ₹1,696 per share and maintained a Buy recommendation, according to reports published on October 13, 2026.
2. Why does Religare expect 47% upside in Reliance Industries?
The brokerage believes the proposed Jio Platforms IPO could unlock value, provide a clearer valuation for the digital business, reduce the holding-company discount and support a wider re-rating of Reliance Industries.
3. What is the proposed valuation of Jio Platforms?
Reuters reported on October 9, 2026, that Jio Platforms was targeting a valuation of approximately $106 billion for its proposed IPO. The final valuation may differ.
4. How could the Jio IPO benefit Reliance Industries?
A separate listing could establish an independent market value for Jio Platforms and improve transparency around Reliance’s sum-of-the-parts valuation. The benefit depends on the final IPO valuation and market response.
5. Will Jio use IPO proceeds to repay debt?
Reported offer-document details indicate that up to ₹27,500 crore of net primary issue proceeds has been earmarked for prepayment or repayment of borrowings at Reliance Jio Infocomm. Investors should refer to the final official documents for confirmed terms.
6. Is the 47% upside guaranteed?
No. It is based on Religare’s target price relative to a historical reference price. Actual returns depend on market movements, the IPO outcome, company performance and the price at which an investor buys or sells shares.
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