RIL shares trade flat ahead of AGM today. Here’s what investors, brokerages are expecting

Shares of Reliance Industries Ltd (RIL) were trading flat, with a slightly positive bias, touching their day’s high of Rs 1,395 on the BSE ahead of the oil-to-telecom conglomerate's much-anticipated Annual General Meeting (AGM) at 2 PM.

With 44 lakh shareholders waiting, expectations are running high for major announcements across IPOs, AI, energy, and digital businesses.

Chairman Mukesh Ambani is expected to shed light on the company’s future roadmap across key business verticals. The AGM comes at a time when RIL stock is under close investor watch, with several strategic developments in the pipeline.

What can you expect from the RIL AGM?

One of the key focus areas at the AGM is the long-pending IPO timeline for Reliance Jio and Reliance Retail. Back in 2019, Ambani had hinted at plans to list both companies within five years.

However, no concrete update has followed since. As the company crosses that five-year mark, markets will be keen to see if the management provides any clarity on when these IPOs could materialise.

Analysts note that while the listing of Jio and Retail could unlock significant value, holding company discounts may temper immediate shareholder impact.

Another area to watch is RIL’s push into artificial intelligence. The brokerage BofA expects commentary on Jio’s AI strategy, particularly a platform under development called JioBrain

Positioned as a comprehensive suite of AI tools, JioBrain aims to streamline operations and integrate smart services across the Jio ecosystem.

Energy is expected to remain a central theme. RIL is undergoing a transformation in its new energy business, evolving into a deep-tech manufacturing entity. The company has made strides in solar and battery giga-factories, and recently commenced operations at its first giga-watt scale solar PV module line.

Further updates are anticipated on the timeline for full operationalisation of this business unit, expected to become self-funded over the next few years. Investors will be listening for insights into efficiency improvements and cost savings, especially from advanced technologies like Perovskite solar cells and green hydrogen.

Additionally, the AGM may touch upon business growth plans in Jio and Retail, with the company previously guiding for a 2x growth target by 2030.

Commentary is also expected on O2C (Oil-to-Chemicals) performance, petchem expansions, and monetization initiatives such as JioAirFiber, Jio Hotstar, and the fast-growing quick-commerce segment.

There is interest in how RIL plans to scale its consumer and enterprise digital services, and potentially expand the footprint of its recently launched Shein joint venture in fashion retail.

What brokerages say?

Amid all this, UBS believes Reliance's refining and petrochemical (petchem) operations remain well-positioned despite macro volatility. The company’s integration strategy and feedstock flexibility are seen as key strengths, with gross refining margins (GRMs) projected to improve to around $10 per barrel by FY26-27E.

Global brokerage Jefferies has maintained a ‘Buy’ rating on Reliance Industries, assigning a price target of Rs 1,670. The recommendation comes on the back of its analysis of RIL’s FY25 annual report, which highlighted key trends across the company’s Jio, Retail, and Energy segments, along with capex patterns, free cash flow (FCF) projections, and potential future growth avenues.

Further, JP Morgan had recently reaffirmed its positive stance on Reliance Industries, assigning an ‘Overweight’ rating with a target price of Rs 1,695. The brokerage noted that RIL’s stock valuations continue to appear attractive despite recent outperformance. It cited two key reasons behind its outlook: the implied holding company discount has narrowed only slightly through 2025, and RIL’s retail business continues to trade at a steeper discount compared to peers like DMart.

Also read: Jio Financial AGM: Here are the top 5 takeaways and hints for RIL AGM

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)