What to watch for in Reliance Industries’ 48th AGM?

Reliance Industries

Reliance Industries Ltd (RIL) will hold its 48th Annual General Meeting (AGM) at 2 pm on August 29. With nearly 44 lakh shareholders, the AGM is expected to see announcements that could set the tone for RIL’s next phase of growth across digital, retail, and energy businesses.

Last month, RIL reported that its quarterly profit rose 77 percent to Rs 30,783 crore. These gains came on the back of the sale of its stake in Asian Paints and growth in consumer-facing businesses. Recurring profit (excluding the one-time gain of Rs 8,924 crore) rose 25 percent from the previous fiscal. For the reporting period, consolidated revenue rose 6 percent to Rs 2.73 lakh crore, and EBITDA (earnings before interest, taxation, depreciation and amortisation) rose 36 percent year-on-year to Rs 58,024 crore.

RIL stock has gained around 13 percent this year and is currently trading at Rs 1,378.20.

Also read: Reliance Industries Q1 profit jumps 76% on sale of Asian Paints stake, robust consumer business performance

Key themes to watch

Jio and Retail IPOs

The market will be watching out for any potential developments on IPO timelines for Jio Platforms and Reliance Retail. Both arms have grown rapidly, and separate listings could unlock value, believe brokerages.

Focus on AI

International brokerage CLSA notes that details on RIL's AI strategy will also be watched for by the Street. “Reliance’s FY25 annual report highlighted its accelerated home connection adoptions driven by AirFiber, making it confident of reaching 100m homes through a combination of Fiber and AirFiber,” the report noted.

Green energy goals

RIL’s new energy platform will continue to take centre stage. In the 2024 RIL AGM, Chairman Mukesh Ambani had noted that the business will be the new jewel in Reliance's crown. “I foresee it becoming as big and profitable over the next 5-7 years as our O2C business, which we built over the past 40 years. And I am confident that green fuels and AI-based solutions will become long-term growth engines for Reliance,” Ambani said.

The company has previously highlighted that it is building an end-to-end ecosystem covering polysilicon-to-solar modules, electrolysers, batteries, and green hydrogen production, with captive renewable power expected to reduce costs by about 25 percent. Updates on technology upgrades, including perovskite solar cells, and the commissioning timeline of these facilities over the next four to six quarters are anticipated. Nuvama also notes that new energy could, in time, generate profits on par with RIL’s traditional oil-to-chemicals (O2C) business.

Retail growth momentum

Investors are also awaiting commentary on how Reliance Retail plans to accelerate growth in the near future. Updates on FMCG expansion, JioHotstar monetisation, and quick commerce are likely. The goal of doubling retail earnings in three to four years, first highlighted at last year’s AGM, will be in focus.

Petrochemicals and energy & production

The O2C business, which is still RIL’s largest profit driver, will remain in focus with major petrochem expansion already underway. The company is adding capacity in polyester (5 mtpa), vinyl (3.9 mtpa), and carbon fibre (20 ktpa) by FY27. On the E&P front, drilling of additional wells at the KG-D6 basin by late 2028 is planned to sustain gas output.

Long-term vision

At the 2024 AGM, the management had outlined a target of doubling Reliance’s overall business by the end of the decade (2030), with Jio and Retail expected to double in the near term. Chairman Mukesh Ambani had noted that he was confident that green fuels and AI-based solutions would become long-term growth engines for Reliance.

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