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Is Jio’s 500 Million Subscribers and Reliance’s New Energy Push Changing the Case for Reliance (RS)?

Simply Wall St · 10/20/2025 16:18
  • Earlier this week, Reliance Industries reported a 10% year-on-year increase in consolidated Q2 net profit to ₹18,165 crore, with broad-based growth across oil-to-chemicals, digital, and retail businesses, and the Jio subscriber base surpassing 500 million.
  • An interesting development is Reliance's acceleration in new energy and AI-driven initiatives, which are now highlighted as key future business drivers alongside its established segments.
  • We'll examine how the record-breaking Jio subscriber growth strengthens Reliance’s investment narrative and forward-looking business outlook.

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Reliance Investment Narrative Recap

To be a Reliance shareholder today, you need to believe in the company's ability to drive sustainable value through its diversified presence across energy, digital, and retail. The recent double-digit profit growth and Jio's record subscriber additions reinforce the bullish case but do not materially change the biggest short-term catalyst, progress on a Jio IPO or consumer demerger remains key, while elevated capital expenditures and cash flow strain continue to be the most important risks to monitor.

Among recent announcements, Reliance's rapid expansion of its JioAirFiber broadband service to 23 million premises stands out, reflecting a focused push into high-growth, AI-enabled digital infrastructure. This development ties closely to the potential catalysts, as scaling digital services could further increase Jio’s market power and could influence sentiment ahead of any structural business moves.

On the flip side, investors should be mindful of the ongoing cash flow pressures tied to large-scale capex and what that might mean if...

Read the full narrative on Reliance (it's free!)

Reliance's narrative projects $15.3 billion revenue and $1.0 billion earnings by 2028. This requires 3.7% yearly revenue growth and a $262 million earnings increase from $737.9 million.

Uncover how Reliance's forecasts yield a $329.12 fair value, a 21% upside to its current price.

Exploring Other Perspectives

RS Earnings & Revenue Growth as at Oct 2025
RS Earnings & Revenue Growth as at Oct 2025

Only one Simply Wall St Community member estimated Reliance’s fair value at ₹329.13, underscoring singular conviction. Meanwhile, with capex-related risks still front-and-center, you may find that others see different upside or challenges for the business.

Explore another fair value estimate on Reliance - why the stock might be worth as much as 21% more than the current price!

Build Your Own Reliance Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.