Religare Broking has maintained a BUY recommendation on Reliance Industries Ltd (RIL), with a target price of Rs 1696, implying a potential upside of 46.7 percent from the stock’s closing price of Rs 1156 on October 12. The brokerage believes the proposed listing of Jio Platforms could act as a major catalyst for a re-rating of the conglomerate by enabling independent price discovery for its largest growth asset and improving transparency in its sum of the parts valuation.

According to Religare, conglomerates often trade at a holding company discount because investors find it difficult to independently assess the value of their individual businesses and understand capital allocation across subsidiaries. A public listing of Jio Platforms could address some of these concerns by establishing a market determined valuation for the digital and telecom business. This could improve visibility into RIL’s overall valuation and potentially narrow the discount at which its shares trade.

The brokerage believes investors could benefit from accumulating RIL shares ahead of the proposed listing, as equity markets frequently price in major corporate developments before their formal execution. Waiting until Jio’s market debut could mean missing an initial phase of valuation expansion. Investors buying RIL would also retain exposure to its other businesses, including Reliance Retail, oil to chemicals and new energy.

Religare considers the stock’s recent correction another factor supporting its investment thesis. According to the brokerage, an extended two year price and time correction has moderated the premium previously associated with future growth expectations, while operating earnings across consumer businesses have continued to develop. The stock’s position near the lower end of its multi year trading range is viewed as favourable for entry, although the brokerage’s assessment of downside protection does not eliminate market or execution risks.

Jio Platforms’ transition from a capital intensive network expansion phase towards monetisation is central to Religare’s investment outlook. The brokerage expects growth to be supported by higher average revenue per user, migration of subscribers towards premium 5G plans, rising data consumption and the expansion of enterprise cloud and artificial intelligence services.

With a substantial portion of its 5G network capital expenditure largely completed, Jio’s capital intensity could moderate, potentially improving cash generation. The business reported revenue from operations of Rs 146885 crore in FY26, EBITDA of Rs 76255 crore and net profit of Rs 30049 crore. Its EBITDA margin stood at 51.9 percent, while its active subscriber base exceeded 524 million.

The proposed IPO could also support debt reduction at Reliance Jio Infocomm Ltd. According to the draft red herring prospectus cited in the report, up to Rs 27500 crore of the net proceeds from the primary issue is earmarked for prepayment or repayment of outstanding borrowings at the telecom subsidiary. If implemented as outlined, the repayment could reduce interest expenses, support net profit growth and improve free cash flow generation.

A stronger balance sheet and higher cash accruals at Jio could also improve the financial position of the parent company. However, the extent of these benefits will depend on the final IPO structure, the actual deployment of proceeds and Jio’s subsequent operating performance.

Beyond Jio, Religare expects Reliance Retail to contribute to long term growth through store expansion, digital commerce and improved operating leverage. A potential future listing of the retail business could provide another opportunity for independent valuation and value discovery, although its timing remains uncertain.

In the oil to chemicals business, integrated refining operations and a recovery in petrochemical profitability are identified as important earnings drivers. Cash generation from the segment is expected to support investments across the group and provide a financial foundation for its expansion plans.

Reliance’s new energy business represents a longer term growth opportunity through the development of manufacturing facilities across solar, energy storage and hydrogen. The commercialisation and scaling up of these projects could create additional revenue streams, although their contribution will depend on execution, demand and project economics.

Religare has outlined three phases through which the proposed Jio listing and improvements across RIL’s businesses could influence valuation.

Over the next zero to six months, developments such as the filing of Jio’s draft red herring prospectus and institutional investor participation could improve valuation visibility and establish a clearer basis for assessing RIL’s sum of the parts value.

Over the medium term, between six and 18 months, higher ARPU and debt reduction at Jio could support EBITDA expansion, lower financing costs and stronger net profit growth.

Over the longer term, between 18 and 36 months, operating leverage at Reliance Retail and the expansion of the new energy ecosystem could provide additional drivers of group wide earnings growth and valuation expansion.

Religare has reiterated its BUY rating and target price of Rs 1696, citing the potential combination of Jio’s independent price discovery, balance sheet optimisation, earnings growth and value creation across RIL’s other businesses. The brokerage recommends initiating exposure at prevailing levels and accumulating on market driven corrections. The target price represents the brokerage’s assessment rather than a guaranteed return, and the proposed listing, business growth and valuation re rating remain subject to execution and market conditions.