Reliance Industries Q2: The stock market is eagerly awaiting the results of Reliance Industries (RIL) for the July-September quarter (Q2). Investors hope that the company’s figures will be much stronger this time. Meanwhile, local brokerage firm Nuwama Research has predicted a big jump in Reliance’s earnings. According to Nuwama, the company’s consolidated EBITDA grew by 17 percent year-on-year to Rs. 53,700 crores. Brokerages had earlier expected a 12 percent growth. At the same time, profit (PAT) may see a huge increase of 15 percent, after which the figure is expected to rise to Rs 20,900 crore. The main reason behind this excellent performance is the improvement in refining margins.

Refining will get a big boost

Nuwama believes that the biggest and most immediate benefit for Reliance will come from its oil-to-chemicals (O2C) business. It is estimated that the EBITDA of this segment will grow by a whopping 38 percent year-on-year to Rs. 20,700 crores may reach. Stronger crack margins of gasoil, aviation turbine fuel (ATF) as well as inventory increase will play a very important role in this upswing. Besides, higher refinery throughput will also help strengthen the company’s results. For this reason, investors’ eyes are particularly focused on this segment.

New energy business will be a new source of income

Although Reliance’s new energy business is still in its infancy, it is going to prove to be a big game changer for the company in the future. Nuwama estimates that this segment will grow very rapidly in the next few years. The EBITDA of this segment in FY 2027 is Rs. 1,500 crore, which will rapidly increase by FY 2030 to Rs. 20,100 crores can be done. This simply means that it will see a huge compound annual growth rate (CAGR) of 137 percent. By that time, this business alone is expected to account for around 7 percent of Reliance’s total EBITDA.

The company has big plans in solar manufacturing

Reliance’s new energy business is very broad, including solar manufacturing, batteries, electrolysers, green hydrogen and renewable power. Reliance has already commissioned 2 gigawatt cell manufacturing capacity with 6 gigawatt (GW) modules. Now the company is working on a 10 GW integrated solar generation facility, with plans to expand to 20 GW in the future. According to Nuwama, if this 10 GW facility operates even at 75 per cent capacity, it can add about Rs 3,400 crore to the company’s profits. This will make a big difference in the overall profit of the company. While in the financial year 2027 in this segment Rs. 300 crore is estimated to be a loss, by 2030 this segment will be Rs. 10,600 crore could turn into a huge profit, which would be 8 percent of Reliance’s total profit.

Nuwama’s complete advice for investors

Considering all these positive signs and future roadmap, Nuwama Research has maintained its ‘Buy’ rating on Reliance shares. For the shares, the brokerage charged Rs. A target of 1,766 has also been set. The brokerage believes that as the new energy business grows, there will be room for re-rating in the company’s valuation. Overall, the refining business will drive Reliance’s growth in the near future, while the new energy business will emerge as a very strong source of earnings for the company in the long run.