RIL's growth plans, Jio listing can lead to rerating of stock

Reliance Industries (RIL) annual general meeting (AGM) had several stunning announcements.

- DEVANGSHU DATTA

RIL looks to list Jio Platforms (JPL) by June 2026. It targets doubling of FY22 earnings before interest, taxes, depreciation and amortisation (Ebitda) (₹1.25 trillion; $14.6 billion) by FY27 implying 14.7 per cent compound annual growth rate (CAGR) over the FY22 levels.

RIL targets retail revenue growth at over 20 per cent CAGR for three years and it has ambitions of becoming India's biggest FMCG player.

A new Reliance Intelligence subsidiary with partnerships with Meta and Alphabet will power an artificial intelligence (AI) initiative. The new energy plans include massive solar farms, green hydrogen plays, and module manufacturing capacity, etc.

Mukesh Ambani, RIL's chairman & managing director, expects FMCG, new energy and AI to surpass existing businesses in scale. The JPL initial public offering (IPO) will unlock value. The intelligence foray includes partnerships for Cloud and compute with Alphabet, and a 70:30 joint venture at an investment of $100 million, using Meta's Llama for enterprise solutions. In retail, RIL will add 2,000-3,000 stores annually and sustain sales growth in high-single digits for existing stores.