RIL Share Price Jumps 2% as Brokerages Turn Bullish on O2C and New Energy Push
Shares of Reliance Industries rose about 2 percent after brokerages turned upbeat about the company’s Oil to Chemicals business and its push into new energy. Investors reacted to the AGM tone set by the chairman and to a Morgan Stanley view that Reliance can benefit from changes in global solar and energy supply chains.
RIL share price: Why the sudden push higher
After the company’s Annual General Meeting the market saw fresh optimism. Brokers gave positive commentary about Reliance’s near term and long term paths.
They highlighted that promises around AI, consumer businesses, and the pace of new energy projects raised confidence among analysts and funds. This upbeat tone helped the stock reverse recent weakness and move up by around two percent.
Morgan Stanley view on China and solar
Morgan Stanley told clients that Reliance could be a major beneficiary of changes in China’s industrial policy. The bank said China is moving to curb excess capacity in sectors such as polysilicon.
That shift may make India based supply chains more valuable. Reliance’s plan to build an integrated solar supply chain in India may lower its energy costs and lift new energy earnings in the coming years, according to the note. The brokerage set a higher target price and an overweight stance for the stock.
RIL share price O2C performance and near term triggers
Analysts are watching the Oil to Chemicals segment closely. Brokerages pointed to improving refining margins and a better pricing mix. They expect O2C to deliver stronger operating profit in the second half of the fiscal year than it did in the first half. These gains in O2C can support group earnings and help the stock re-rate.
Why O2C matters for the stock
Oil to Chemicals is a cash engine. When refining margins firm up the unit can generate large cash flows. Investors value that cash for debt reduction and new investments. Brokerages said a stronger O2C can be the immediate trigger that brings more fund flows back into Reliance shares.
RIL share price New Energy plans and the Jamnagar giga factory
Motilal Oswal and other brokerages have raised the value they assign to Reliance’s new energy unit after the company shared plans for a battery giga factory.
The Jamnagar plant is planned to start with capacity at the 40 GWh level and can scale further. Brokerages view this factory as central to Reliance’s plan for batteries and integrated solar cells. They expect the new energy business to add real earnings in the medium term.
Policy support and incentives
Analysts pointed to Indian policy steps that help large scale battery production. Support like production linked incentives can improve the economics of big battery factories. Brokerages say that policy tailwinds plus Reliance’s scale and execution strength make the new energy push credible.
What brokerages said about valuation and targets
Major brokerages reiterated buy ratings and raised target prices. One global broker gave Reliance an overweight rating and put a target near the mid to high range quoted in market notes. These upgrades reflect expected improvement in O2C margins and the value of the new energy pipeline. The broker notes are a key reason for the short term stock lift.
Investor takeaway
Short term moves matter. The 2 percent gain was a reaction to positive broker notes and to the broader narrative that Reliance is moving into areas with strong future returns. Investors who watch catalysts like O2C margin improvement and the Jamnagar ramp will keep a close eye on quarterly updates and execution milestones.
Deeper look at strategy and execution
Reliance is building a full solar supply chain in India. Morgan Stanley estimated that this could cut energy costs by a large margin by around 2030. That lower energy cost can increase margins for many group units that use power or solar inputs. This is a strategic bet that link manufacturing and energy together.
Scale and captive use
Analysts expect that initial battery output may serve Reliance’s own needs. This captive use will reduce direct market revenue early on but will build capability and secure energy inputs for retail, telecom and other businesses in the long run. Brokers see this as disciplined scaling rather than a quick market cash grab.
Market context and risks
RIL is still sensitive to global crude swings and to its own execution on big projects. If O2C margins weaken or if new energy rollouts stall the positive view can fade. Brokerages often flag execution risk and the need for steady progress at the Jamnagar facility. These are the main watch points for investors.
Why brokers stayed bullish
Despite risks, brokers stayed positive because they see a multi year earnings recovery. They highlight margin improvement in O2C and the optionality in new energy as two pillars that can lift valuations. The research notes weigh these upside paths against the known risks.
Closing summary
Reliance’s 2 percent intraday rise reflects a clearer positive tilt from brokerages that now expect stronger O2C performance and meaningful future earnings from the company’s new energy plan.
The Morgan Stanley analysis on China’s policy shift and the build out of a local solar supply chain added another layer to the bullish case. For now the market is rewarding the execution story and the long term scale potential.
FAQs
Broker optimism after the AGM and a Morgan Stanley note on China and solar helped lift sentiment, leading to the move.
Brokers say new energy will add value over time. Early output may go to captive needs and earnings contribution is expected to rise over the medium term as factories scale
Yes. Improving refining margins and diversified crude sourcing were cited as immediate drivers that can boost O2C profits and support the stock in the near term.
Disclaimer
The content shared by Meyka AI PTY LTD is solely for research and informational purposes. Meyka is not a financial advisory service, and the information provided should not be considered investment or trading advice.