New energy to be growth driver for RIL

POTENTIAL TO SCALE UP THE SIZE OF O2C SEGMENT IN 5-7 YRS

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IN HIS FY25 AGM address, Reliance India (RIL) chairman reaffirmed the goal of doubling Ebitda by 2027, from 2022 levels, announced plans to list Jio Platforms (JPL) by 1HCY26, projected 20%+ revenue CAGR for Retail over the next three years and highlighted AI and FMCG as the next growth engines. We maintain our Buy rating on RIL with a TP of ₹1,700.

RJio crossed the 500 million subscriber mark (about 498 million as of Jun'25-end) and is now adding 1 million+ home broadband users monthly. RIL's chairman confirmed that preparations for Jio Platform's IPO are complete, with a planned listing by 1HCY26. We currently value Jio at an enterprise value of ₹13.3t (about $151 billion), based on about 13.5x Sep'27 EV/Ebitda, which implies an overall equity value of ₹11.9t (about $135 billion) for Jio (₹585/share attributable to RIL).

Based on our valuation and SEBI's recent proposal for reducing stake dilution limit to 2.5%, Jio's IPO could be the largest in India with a size of about ₹30,000 crore. We believe the value creation through the Jio's IPO could offset the negative impact of a theoretical holding company discount for RIL's stake in Jio.