Reliance Share Price Target Hits Rs 1,801- Should You Buy In Before the Solar Boom?

Shares of Mukesh Ambani’s Reliance Industries Ltd. (RIL) rose on Tuesday after brokerage Nuvama Institutional Equities raised its price target to Rs 1,801 — the highest on the Street — citing aggressive expansion in the company’s solar module business and the potential for a substantial re-rating, much like the one seen after the 2017 Jio rollout.

Reliance Share Price Today 
Also today, RIL Share price rose over 2%, opened at Rs 1500.65 and went a high of Rs 1531.20, and at the moment of writing this stor,y the stock is trading at Rs 1529.15 up by 28.50 pts  or 1.90%

Reliance Share Price Target
According to Nuvama, RIL’s production and external sale of solar modules could contribute around 6% to its net profit, creating a potential valuation surge. "RIL’s New Energy rollout shall not only add 50 per cent-plus to PAT, but also rerate valuations, including the Oil to Chemicals (O2C) business given its net zero-carbon target by 2035," the brokerage said in its note.

RIL recently commissioned its first line of Heterojunction Technology (HJT) solar panels, with a current capacity of 1GW. This facility, located in Jamnagar, is scalable to a fully integrated 10GW capacity by early CY26E. The HJT modules, known for higher efficiency, are being sold in the domestic market as Reliance’s own power generation rollout is still underway.

Solar Push Could Add Rs 3,800 Crore to Profit
With full 10GW scale-up, Nuvama estimates RIL’s solar business could add Rs 3,800 crore to net profit—roughly 6% of FY25 projected PAT.

The firm believes this could place RIL on a stronger footing than existing players like Waaree Energies and Premier Energies, unlocking higher enterprise value (EV) due to its vertically integrated capacity.

Strategic Energy Bets Beyond Solar
At its August 2024 AGM, Reliance outlined that its New Energy business could match the profitability of its O2C segment — which currently contributes about 40% to EBITDA and over half of PAT — in five to seven years.

In addition to solar, RIL has also planned a 30GWh battery storage facility, and is progressing on green hydrogen and electrolyser manufacturing, with a key technology tie-up with Norwegian firm Nel ASA.

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Nuvama’s bullish stance comes from extensive industry checks and rising investor optimism around RIL’s clean energy foray, positioning the conglomerate for a potential long-term rerating.
 

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