A week ago, Reliance Industries Limited (NSE:RELIANCE) came out with a strong set of second-quarter numbers that could potentially lead to a re-rate of the stock. It was overall a positive result, with revenues beating expectations by 3.1% to hit ₹3.3t. Reliance Industries reported statutory earnings per share (EPS) ₹18.88, which was a notable 11% above what the analysts had forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.
Taking into account the latest results, the most recent consensus for Reliance Industries from 24 analysts is for revenues of ₹13t in 2027. If met, it would imply a decent 10% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to swell 16% to ₹70.20. Yet prior to the latest earnings, the analysts had been anticipated revenues of ₹12t and earnings per share (EPS) of ₹64.51 in 2027. Sentiment certainly seems to have improved after the latest results, with a substantial gain in revenue and a small lift in earnings per share estimates.
View our latest analysis for Reliance Industries
Despite these upgrades,the analysts have not made any major changes to their price target of ₹1,666, suggesting that the higher estimates are not likely to have a long term impact on what the stock is worth. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. The most optimistic Reliance Industries analyst has a price target of ₹1,890 per share, while the most pessimistic values it at ₹1,350. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.
Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. It's clear from the latest estimates that Reliance Industries' rate of growth is expected to accelerate meaningfully, with the forecast 21% annualised revenue growth to the end of 2027 noticeably faster than its historical growth of 10% p.a. over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 3.1% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Reliance Industries to grow faster than the wider industry.
The Bottom Line
The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Reliance Industries following these results. Happily, they also upgraded their revenue estimates, and are forecasting them to grow faster than the wider industry. The consensus price target held steady at ₹1,666, with the latest estimates not enough to have an impact on their price targets.
Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. At Simply Wall St, we have a full range of analyst estimates for Reliance Industries going out to 2029, and you can see them free on our platform here..
You can also see whether Reliance Industries is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.
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