RIL stock downturn: What investors need to know about Reliances 2026 outlook
Reliance Industries (RIL) started 2026 weakly, stock down 7%, concerning investors. Focus is on January 16 quarterly results amidst refining and retail uncertainties. Jefferies maintains 'Buy', projecting significant FY27 growth, largely from Jio's mobile tariff hikes, home broadband, and potential listing. This offers a positive long-term outlook for RIL amidst current market jitters.
New Delhi: The beginning of 2026 has been weak for Reliance Industries Ltd (RIL), the country's largest listed company. The market cap of this giant company has decreased by about Rs 1.4 lakh crore. Since the beginning of the year, the stock has fallen by about 7 percent. In such a situation, investors are confused about what to do about this? Investors' eyes are now set on January 16. This is due to the company's quarterly results.
This decline comes at a time when Reliance outperformed the Nifty in 2025 and showed an increase of about 29 percent. But by the beginning of 2026, the picture changed. Increasing uncertainty about Russian crude in the refining business and signs of weak demand in the organized retail sector have shocked investors' expectations.
Reliance share target price: What Jefferies said
Jefferies has set a target of Rs 1,830 by retaining the Buy rating on shares of Reliance Industries. The brokerage expects the company's consolidated EBITDA to grow by about 13 percent in the financial year 2027, with Jio being the biggest contributor. Jefferies estimates that Jio's revenue will increase by 22 percent per annum in the financial year 2027, which will be due to the surge in mobile tariffs and strong growth in home broadband. With the margin improvement of about 280 basis points, Jio's EBITDA can increase by about 28 percent. Also, Jio's free cash flow is expected to increase by 65 percent annually.
According to Jefferies, investors' focus will be on many important triggers in 2026. These include the possible listing of Jio, further tariff hikes in the mobile segment, and the expansion of the fixed wireless access business. The brokerage has indicated that tariff hikes and Jio's listing may prove to be big triggers by mid-2026. Apart from this, the return of double-digit growth in retail business in FY 2027, value unlocking in FMCG, new energy and data center business will also be important factors for Reliance in the next few years.
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