World · India Bureau
Motilal Oswal Lifts RIL Earnings Forecasts Despite Trimming Price Target
The brokerage has raised its financial projections for Reliance Industries across the next two fiscal years, citing strong operational performance in energy and telecommunications. However, the firm has reduced its target price for the conglomerate's shares.
LSN India ·
Motilal Oswal Financial Services has upgraded its earnings estimates for Reliance Industries following the company's second-quarter results, which delivered EBITDA performance at its strongest level in over four years. The brokerage increased its FY27 earnings before interest, tax, depreciation and amortisation (EBITDA) and profit-after-tax (PAT) forecasts by 8-10%, while raising FY28 projections by 4-7%.
The positive revision reflects enhanced profitability in Reliance's energy business alongside improved margin delivery from its digital telecommunications arm, Jio Platform. Both segments demonstrated resilience and operational efficiency during the quarter, supporting the upgrade in near-term earnings potential.
Despite the upward revision to financial estimates, Motilal Oswal reduced its target price for Reliance Industries shares, suggesting the gains may already be reflected in current valuations. The divergence between upgraded earnings and a lower price target indicates the brokerage's view that the stock's current trading levels account for the improved operational performance and earnings trajectory.
The mixed signal reflects broader market dynamics, where strong operational results must be weighed against valuation considerations and macro-economic factors affecting investor sentiment in the energy and telecommunications sectors.