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Investing.com - JPMorgan has reiterated its Overweight rating on Reliance Industries (RELIANCE:IN) with a price target of INR1,695.00.
The company reported second-quarter fiscal year 2026 EBITDA of Rs459 billion, representing a 17% year-over-year increase and exceeding JPMorgan’s estimates by 3%. Despite stronger operational performance across segments, profit after tax of Rs182 billion fell 2% short of expectations due to lower other income and higher depreciation and tax expenses.
Retail EBITDA growth accelerated to 16% year-over-year, while telecom EBITDA increased 17% year-over-year, supported by improved margins. Both segments benefited from comparison against a low base period.
JPMorgan expects Reliance’s EBITDA momentum to continue in the near term, driven by multiple factors including better refining margins that appear sustainable into winter, a weaker rupee helping O2C earnings, seasonal strength in retail, and continued upside in telecom from higher subscribers, ARPU, and margins.
The investment bank noted that potential tariff increases ahead of the proposed Jio IPO could further strengthen growth prospects, while current valuations remain "comfortable relative to peers/market."
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