Reliance: What are brokerages recommending post Q2

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26 Aug, 2025 12:21

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Reliance Industries' Q2 numbers were almost in-line with street expectations. As expected, declining gas output from the energy giant's KG-D6 fields and muted performance in the petchem business led to an almost 5.7% decline in profits, YoY.

Analysts who met the management yesterday post the result announcement say that still there is no clarity production ramp-up at KG-D6 due to technical and bureaucracy related issues. Also, due to seasonality of refining trends, brokerages are little cautious on the near-medium term outlook on the company. However, pace of capacity additions and price/demand environment will be deciding factors going ahead.

Have a look on how brokerages view RIL stock post Q2 earnings.

Antique Broking has assigned a 'hold' rating on the stock with a target price of Rs 820. The firm states that RIL's upstream plans are subject to government approval and gas pricing regime and could be an overhang on the stock. The brokerage also sees limited upside in gross refining margins, a major revenue churner for the company. "We estimate GRMS to average at USD 8.5 /bbl for FY13," it adds.

HSBC has cut RIL to 'underweight' with a target price of Rs 800 from 'neutral' on grounds that the energy conglomerate is unlikely to sustain a sudden jump in refining margins to USD9.5/bbl. The firm further says that RIL could meet market expectation only due to a rebound in refining margins and treasury gains from its huge cash pile which bolstered profits.

Citi Research has given a 'neutral' rating to the stock with a target price of Rs 847. The firm further says volume growth in near term is likely to remain subdued as the company's new projects are three years away. There is also no clarity on exploration and production segment due to pending government approvals and non-clarity on pricing. "Earnings upside will, therefore, need to be margin-led which appears unlikely in all of RIL's business verticals," it states.

Angel Broking expects to the stock to remain muted in near term. "Guidance on KG-D6 production and increase in gas price would be key catalysts, going ahead," it states.