Motilal Oswal's research report on Reliance Industries
RJio has reached the milestone of 500m subscribers (498m at Jun’25 end) and accelerated the pace of home broadband net adds to 1m+ per month. RIL’s Chairman announced that the company has made all arrangements to file for JPL’s IPO, with an aim to list the company by 1HCY26. We currently value JPL at an Enterprise value of INR13.3t (USD151b), based on 13.5x Sep’27 EV/EBITDA, which implies an overall equity value of INR 11.9t (USD135b) for JPL (INR 585/share attributable to RIL).
Outlook
We value RJio based on DCF – implied 13.5x Sep’27E EV/EBITDA to arrive at our enterprise valuation of INR 12.5t (USD142b) and assign USD9b valuation to other offerings under JPL. Factoring in net debt and the 33.6% minority stake, the attributable value for RIL comes to INR 585/share. Using the SoTP method, we value the O2C/E&P segments at 7.5x/5.0x Sep’27E EV/EBITDA to arrive at an enterprise value of INR 5.5t (or INR407/sh) for the standalone business. We ascribe an equity valuation of INR 585/sh and INR 605/sh to RIL’s stake in JPL and RRVL, respectively. We assign INR 110/sh (INR 1.5t equity value) to the New Energy business and INR 26/sh to RIL’s stake in JioStar. We reiterate our BUY rating with an unchanged TP of INR 1,700.
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