Reliance Industries Limited (RELIANCE) fair value: what the stock is really worth
As of Nov 6, 2026: fair value (intrinsic value) of Reliance Industries Limited stock ₹865, price ₹1,320, that is 34.4% below the price, quality 51 out of 100. Rating: overvalued. Calculated from audited financials with 26 valuation models and 37 quality factors, updated daily.
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Our calculation puts a fair price 34% below what the stock costs today.
Healthy Growth(revenue 5y +17.8 %/yr in INR)
Low debt
Generates free cash flow
0.5% dividend yield · Well covered
Broad data
Last quarter vs. a year ago: revenue +33%, profit +41%.
Quality 51/100
Thin margins · 6.9% net margin (TTM)
Mixed vs. peers(6/15)
Moderate moat52/100
Fair value ₹865.31 · Overvalued (−34.4%)
⟳ Cyclical
Risks from the AI analysis
🚩Price drop: Market looking past near-term earnings to retail results and Jio holding structure🚩KG basin gas disputes could trigger large claims🚩Energy transition could reduce refining demand
69 individual criteria per stock, every one traceableSee the method →
Price vs Fair Value
White line = price, green steps = our fair value per fiscal year. As of Nov 6, 2026.
How to read this chart
60‑month range ₹921.82 – ₹988,084 · fair‑value band ₹488.90 – ₹1,176 · the ₹1,320 price screens above the ₹865.31 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). As of Nov 6, 2026.
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Reliance Industries Limited engages in hydrocarbon exploration and production, petroleum refining and marketing, petrochemicals, advanced materials and composites, renewable, financial services, retail, and digital services worldwide.
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It operates through the Oil to Chemicals, Oil and Gas, Retail, Digital Services, and Others segments.
The company is involved in refining and marketing products, including liquefied petroleum gas, propylene, naphtha, gasoline, jet/aviation turbine fuel, kerosine oil, diesel, sulfur, and petroleum coke.
It also provides polymers comprising high-density and low-density polyethylene (PE), linear low-density PE, homopolymer, random and impact copolymer, and polyvinyl chloride; fiber intermediates that include purified terephthalic acid, and ethylene glycols and oxide; aromatics, such as paraxylene, ortho xylene, benzene, and linear alkyl benzene and paraffin; and textiles that consist of fabrics, apparel, and auto furnishings.
In addition, the company offers elastomers, such as polybutadiene rubber, styrene butadiene rubber, and butyl rubber; fiber and yarn polyesters; and bioenergy solutions, including compressed biogas, and pellets and briquettes.
Further, it engages in oil and gas exploration and production activities; operation of various stores comprising supermarkets, hypermarket, wholesale cash and carry, specialty, and online stores; operation of media and entertainment platforms, and Network18 and television channels; and publishing of magazines.
Additionally, the company provides highway hospitality and fleet management services, as well as digital services, such as connectivity, fiber, mobile devices, apps, business, and other digital solutions. Reliance Industries Limited was founded in 1957 and is based in Mumbai, India.
Stock analysis
Reliance Industries Limited (RELIANCE) currently trades at ₹1,320, while our model-based Fair Value estimate is ₹865.31, 34% below the price, so the stock looks overvalued today.
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Valuation
Bull case: the Growth Earnings group reads highest at a median of ₹904.38 per share, and 1 of the 26 models we run sit above the ₹1,320 price.
Bear case: the Asset-Based group reads lowest at ₹237.87, and 25 of the 26 models stay below the price. Data coverage for this calculation is high.
Scenario range: ₹488.90 (bear) to ₹1,176 (bull), the price of ₹1,320 sits above it. Bear and bull are the same models on cautious and optimistic assumptions, a range, not a price target.
Quality & growth
The Quality Score stands at 51/100 (solid quality), in the Energy sector.
Healthy Growth: Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Reliance Industries Limited reported revenue of ₹10.6T in FY2026 versus ₹7.0T in FY2022, a compound +11.0%/yr. Reported net income was ₹808B in FY2026, compounding +7.4%/yr from FY2022.
Key figures
Market cap ₹17.9T (≈ $189B) Large · P/E ratio 19.2 · P/S ratio 1.51 · EPS (TTM) ₹60.68 · Dividend yield 0.5% · Net margin 6.9% · Return on equity 8.8% · Return on assets (EBIT) 5.9%.
Competitive moat
Our AI-assisted moat analysis scores the competitive advantage at 52 out of 100 (medium confidence).
What moves the price
The share trades about 17% below its 52-week high and 14% above its 52-week low, currently above its 200-day average.
For context, the median of 10 Energy peers we cover trades at −46% fair-value upside, at −34%, RELIANCE screens cheaper than that median.
Fair Value models
Bear₹488.90Fair Value ₹865.31Bull₹1,176
Price ₹1,320 · Downside -34.4%
Model ⓘEach model values the company its own way (discounted cash flow, earnings, assets, dividends). The fair value above starts from their evidence-weighted blend, not from a single model. In cyclical trough or peak years, after dilution or a stock split it is adjusted afterwards, so it can sit above or below the models. Based on fiscal year 2026 figures (about 7 months old). Earnings retained since then (₹32.96 per share) are deliberately not added.Bear ⓘBear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull ⓘBull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. If a model's bull case is above four times its base value, the table shows that limit with a > sign (like the overall Bull above): beyond it no assumption holds.Coverage ⓘCoverage = how well-backed THIS model's estimate is for this stock (0–100): how complete and reliable its input data are, and how well the model fits the company. The final Fair Value is an evidence-weighted blend, so better-evidenced models count more. Green ≥70, amber 50–69, grey below 50.
Growth Quality ⓘGrowth is valuable only when reinvestment earns attractive returns (Aswath Damodaran): sustainable growth depends on return on capital, reinvestment and efficiency. Basis: total company revenue over the periods shown on the cards (3Y/5Y/all years), not per share, so a merger can show up as a growth jump; per-share earnings growth is in the value-creation card.85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Revenue growth 1 year
+9.6%
Revenue growth 3 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+6.4%
Revenue growth 5 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+17.8%
Start year 2021 (pandemic). Over 10 years: +14.5% a year
Revenue growth 21 years ⓘMeasures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump. Per-share growth (which does include buybacks) is in the value-creation card.
+14.1%
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What shareholders gained per year (last 5 years), in INR ⓘWhat the business itself delivers per year: earnings growth per share plus the dividend yield. This is what you get IF the market keeps valuing the stock the same way: it contains no assumption about the market changing its mind. Computed per share, so buybacks count and a merger does not pass as growth. For a company that pays no dividend it is pure earnings growth per share. Period: earnings growth per share as CAGR over the last 5 reported fiscal years (annual statements), plus the current dividend yield. The start value is the median of the three years around the start, so a single crisis year (a pandemic or a write-down) does not distort the rate. Measured in INR: this currency has depreciated against the euro and dollar over the long run, so part of the nominal rate is currency erosion that never reaches a EUR/USD investor.
+10.2%
Earnings growth per share plus dividend.
Earnings per share, growth per year+9.7%
Dividend (yield on the price)0.5%
Pace: 5 vs 10 years ⓘTwo data points, not a trend model: earnings growth per share over the last 5 fiscal years against the last 10. Labelled "steady" when both rates are within 3 percentage points of each other, otherwise picking up or flattening. Shown only when ten years of history exist.9.7% vs 9.1%, steady
Profit margin 2021 to 2026 ⓘOperating margin then vs now, from reported annual statements. A falling margin after a boom year is the classic peak-earnings signal: the growth rate then leans on an inflated base.12% → 12%
Pace: the 5-year rate starts in 2021 (pandemic)
Growth Forecast
A lot of optimism in the price
The price assumes more growth than the company has delivered so far and more than analysts expect.
What the price assumes ⓘThis turns our valuation around: instead of asking what the share is worth, it asks what growth the current price requires. It uses the cash the company keeps after all spending (free cash flow), the same discount rate as our models, five years of growth, then slowing evenly to 2 % a year by year ten. Compared with the analysts' sales forecasts extended to the same five years (at least three analysts, for context only, it does not enter the Fair Value): within 3 percentage points counts as "in line" (amber), below that little optimism (green), above that a lot of optimism (red).
+22.9%
Yearly growth needed for the next five years to justify today's price.
What forecasts expect ⓘAnalysts publish sales forecasts for the next two fiscal years. For the years after that, growth slows evenly to 2 % a year by year ten (2 % is the long-run rate our models use). Projected years are marked as such.
+5.7%
Yearly sales growth analysts expect, extended to five years.
After inflation (India: IMF forecast 4.1% a year to 2030, 4.7% from 2016 to 2025) that is about +18.1% a year for the price and +1.5% for the forecasts.
AI conclusion: Moderate moat from scale and alignment in energy operations is offset by weak innovation and limited pricing power signals.
Main risk: Ongoing arbitration and court cases with the Indian government and ONGC over alleged gas migration or underproduction from KG-D6 fields could lead to multi-billion-dollar liabilities or operational constraints for the upstream business.
Bull case: Reliance could leverage its refining scale and integration to accelerate the pivot into green hydrogen, solar manufacturing and petrochemicals, turning the energy transition into a new growth engine alongside Jio and retail.
Bear case: Prolonged legal liabilities from the KG disputes combined with faster-than-expected declines in transport fuel demand could squeeze upstream and refining margins while delaying returns from the new energy investments.
Reliance's oil-to-chemicals segment has posted record margins from global supply disruptions, yet the shares have lagged as the market looks past near-term earnings to retail results and the Jio holding structure. Our models currently see the stock as overvalued. Will the refining strength prove durable enough to close that gap or will other segments keep the discount in place?
Compare Reliance Industries Limited with another stock
Price, fair value, quality and upside side by side.
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Peer GroupⓘHow this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.Oil & Gas Refining & Marketing · 116 stocks
Beats the industry median on 6/15 measures
A mixed picture versus its industry peers.
Valuation
Quality Score51 · Below median
Fair Value upside−34.4% · Below median
Profitability
Return on equity (12 months)8.8% · Below median
Return on assets3.7% · Above median
Net margin (12 months)6.9% · Above median
Operating margin (12 months)13.9% · Top 25%
Growth and dividend
Revenue growth (quarter YoY)33.0% · Above median
Dividend yield (12 months)0.5% · Bottom 25%
Balance sheet
Debt / equity0.30× · Below median
Valuation Multiplesvs Oil & Gas Refining & Marketing median · lower = cheaper
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Is Reliance Industries Limited (RELIANCE) overvalued or undervalued?
As of Nov 6, 2026, our model estimates a fair value of ₹865.31 versus a price of ₹1,320, about 34% lower (overvalued).
What is the fair value of RELIANCE?
Our model-based fair value for Reliance Industries Limited is ₹865.31 (as of Nov 6, 2026), built from audited fundamentals. The current price: ₹1,320.
What is the quality score of RELIANCE?
Reliance Industries Limited has a Quality Score of 51/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the price target for Reliance Industries Limited (RELIANCE)?
Our model-based price target is the fair value of ₹865.31 (as of Nov 6, 2026) from 26 valuation models. Cautious scenario ₹488.90, optimistic scenario ₹1,176. It is a calculation from audited fundamentals, not an analyst target.
What is the Reliance Industries Limited stock forecast for 2026?
Our models put fair value at ₹865.31, about 34% lower versus a price of ₹1,320 (overvalued). Cautious scenario ₹488.90, optimistic scenario ₹1,176. The calculation is refreshed regularly with new filings.
What is the revenue of Reliance Industries Limited (RELIANCE)?
Reliance Industries Limited reported trailing-twelve-month revenue of about ₹11.9T (latest available figure, as of Nov 6, 2026).
Does Reliance Industries Limited pay a dividend?
Reliance Industries Limited currently shows a dividend yield of 0.45% relative to its recent price (as of Nov 6, 2026).
What growth is priced into Reliance Industries Limited (RELIANCE)?
For today's price to be fair in a discounted-cash-flow model, Reliance Industries Limited would have to grow free cash flow by +22.9 % per year for five years (discount rate 10.4 %, then slowing evenly to 2 % perpetual growth by year ten). Over the last 5 years revenue grew +17.8 % per year. As of Nov 6, 2026.
What discount rate (WACC) does the fair value of RELIANCE use?
Our models discount Reliance Industries Limited at 10.4 %: a base by market capitalisation (large), damped by beta 0.19, country premium for India. The same rate applies in all 26 models.
What is a reverse DCF?
A reverse DCF turns the usual calculation around. Instead of deriving a value from assumptions, it takes today's price as given and asks: what free-cash-flow growth would a company have to deliver for exactly this price to be fair? The result is not a forecast but the expectation already priced in. For Reliance Industries Limited that is +22.9 % per year a year over ten years, using the same discount rate (10.4 %) and the same formula as our fair value.
How much growth has Reliance Industries Limited (RELIANCE) delivered so far?
Over the past 5 years revenue at Reliance Industries Limited grew +17.8 % a year. The price currently implies +22.9 % per year free-cash-flow growth a year. Comparing the two shows how much confidence is in the price: if it demands more than has been delivered, the business has to accelerate for the maths to work.
How fast is the sector of Reliance Industries Limited (RELIANCE) growing?
The median revenue growth in the sector is +14.0 % a year. That is the yardstick for the growth priced into Reliance Industries Limited (+22.9 % per year a year): it shows whether the expectation is within the usual range or beyond it.
What is the free cash flow yield of Reliance Industries Limited (RELIANCE)?
The free-cash-flow yield on the price is 2.90 %: that much free cash flow Reliance Industries Limited produces per unit of market value. When it exceeds the discount rate of our models (10.4 %), the business already earns more than its cost of capital demands, and the price needs little additional growth.
What is the intrinsic value of Reliance Industries Limited (RELIANCE)?
Intrinsic value and fair value mean the same thing: what the business is worth on its numbers, independent of the share price. For Reliance Industries Limited it is ₹865.31 per share (as of Nov 6, 2026), against a price of ₹1,320. It is the blended result of 26 valuation models (cash flow, earnings, asset, dividend).
Is Reliance Industries Limited stock overvalued or undervalued in 2026?
As of Nov 6, 2026, RELIANCE trades above its calculated fair value: price ₹1,320, fair value ₹865.31, a gap of about −34% (overvalued). The calculation is refreshed with each new quarterly report, so the verdict can change during the year.
Is fair value the same as the market price of RELIANCE?
No. The price is what the market pays today (₹1,320); the fair value is what the company's own numbers justify (₹865.31). For Reliance Industries Limited the two are ₹454.69 per share apart. That gap is exactly why we show both numbers side by side.
How much is Reliance Industries Limited worth?
The market values Reliance Industries Limited at about ₹17.9T (market capitalisation, as of Nov 6, 2026). Per share that is ₹1,320; our models calculate a fair value of ₹865.31 per share.
What do the bullish and bearish scenarios say about RELIANCE?
Our models span a range for Reliance Industries Limited: cautious scenario ₹488.90, base ₹865.31, optimistic ₹1,176 per share (as of Nov 6, 2026, price ₹1,320). The range comes from different growth and margin assumptions, not from analyst opinions.
What is the P/E ratio of RELIANCE?
Reliance Industries Limited trades at a price-to-earnings ratio of 19.2 (as of Nov 6, 2026). A P/E on its own says little: it compares the price with ONE year of profit, while our fair value of ₹865.31 is built from several models across several years. Other multiples: PEG 0.8, P/B 2.0, P/S 1.5, EV/EBITDA 10.6.
What is the PEG ratio of RELIANCE?
The PEG ratio of Reliance Industries Limited is 0.82 (P/E divided by earnings growth, as of Nov 6, 2026). That is below 1, so growth is priced more cheaply than the earnings multiple alone suggests.
How solid is the balance sheet of Reliance Industries Limited (RELIANCE)?
Balance-sheet figures for Reliance Industries Limited (as of Nov 6, 2026): return on equity 8.8%, debt of 0.30 per unit of equity. They feed the Quality Score of 51/100, which measures business quality independently of the share price.
How far is RELIANCE from its 52-week high?
Reliance Industries Limited trades at ₹1,320, about 17% below its 52-week high of ₹1,585 and 14% above the low of ₹1,158 (as of Nov 6, 2026). Distance from the high says nothing about value: that is what the fair value of ₹865.31 is for.
Which stocks are comparable to Reliance Industries Limited?
From the same area (Energy) we also value Marathon Petroleum Corporation, Valero Energy Corporation, Phillips 66, Formosa Petrochemical Corporation, among others. Each of them has its own fair-value calculation on this site using the same models, so the comparison is like for like.
Is Reliance Industries Limited stock attractive at the current price?
The data as of Nov 6, 2026: price ₹1,320, calculated fair value ₹865.31 (−34%), Quality Score 51/100, from 26 models. Whether that fits your horizon and risk tolerance is your call. We provide the calculation, not investment advice.
How is the fair value of RELIANCE calculated?
We run Reliance Industries Limited through 26 models from four families: discounted cash flow, earnings models, asset and balance-sheet models, and dividend models. Every model gets the same audited fundamentals; the result is the weighted average of ₹865.31, with the spread shown as a cautious and an optimistic scenario.
Is it still worth investing in stocks now?
The global stock market currently sits 15.5% above its aggregate fair value. Reliance Industries Limited itself currently trades above fair value. An expensive market is no reason to stay out and no reason to buy everything at once: keep a broad savings plan running, buy single stocks only with money you can do without, and hold part of your money liquid while the market is high. The full picture including sectors is on is it worth investing now.
What is the share price of Reliance Industries Limited (RELIANCE)?
The closing price on Nov 6, 2026 was ₹1,320. Our model-based fair value is ₹865.31, about 34% lower (overvalued). We carry closing prices from our data provider, not a live tick.
What should I pay attention to with Reliance Industries Limited right now?
The price sits above even our optimistic bull case (₹1,176). The favourable scenario is already priced in. Solid but not exceptional quality (51/100) and above fair value, neither a clear bargain nor a standout compounder. A fairly wide model range (₹488.90 to ₹1,176) leaves room in how you read the outcome.
Where does the earnings growth of Reliance Industries Limited (RELIANCE) come from?
Earnings per share at Reliance Industries Limited grew +9.8 % a year from 2015 to 2026. Broken into its drivers: revenue per share +11.6 %, EBIT margin +2.4 %, tax rate −0.3 %, residual (interest, one-offs) −3.6 %. The four rates multiply to the earnings growth rate, they do not add up. Start and end are three-year averages so a single exceptional year does not distort the result.
Key figures of Reliance Industries Limited
How large is the market capitalisation of Reliance Industries Limited (RELIANCE)?
The market capitalisation of Reliance Industries Limited is ₹17.9T (≈ $189B). The stock-market value of the whole company: share price times number of shares. It is what the market asks for the entire business today.
What is the P/S ratio of Reliance Industries Limited (RELIANCE)?
The price-to-sales ratio of Reliance Industries Limited is 1.51 (last twelve months). Price to sales: market value relative to yearly revenue. Useful when profit is thin or distorted.
What are the earnings per share of Reliance Industries Limited (RELIANCE)?
Earnings per share at Reliance Industries Limited are ₹60.68 (price ÷ EPS = P/E 19.2). Earnings per share over the last twelve months: total profit spread across every single share.
What is the dividend yield of Reliance Industries Limited (RELIANCE)?
The dividend yield of Reliance Industries Limited is 0.5% (payout 9.9%). Yearly dividend relative to the share price. 3% pays 3 per 100 invested. Below: how much of profit is used for it.
What is the net margin of Reliance Industries Limited (RELIANCE)?
The net margin of Reliance Industries Limited is 6.9% (last twelve months). How much of every unit of revenue ends up as profit. 10% means 10 cents of profit per dollar of sales.
What is the return on equity of Reliance Industries Limited (RELIANCE)?
The return on equity (ROE) of Reliance Industries Limited is 8.8% (last twelve months). Profit relative to shareholders' equity, how efficiently the company works with its owners' money.
What is the EBIT return on assets of Reliance Industries Limited (RELIANCE)?
On an EBIT basis the return on assets of Reliance Industries Limited is 5.9% (avg 5y). Operating profit (EBIT) relative to everything the company owns, as a multi-year average. It describes the business model rather than one good or bad year.
What is the operating margin of Reliance Industries Limited (RELIANCE)?
The operating margin of Reliance Industries Limited is 13.9% (last twelve months). Profit from the core business (before interest and taxes) relative to revenue.
How fast is revenue growing at Reliance Industries Limited (RELIANCE)?
Revenue at Reliance Industries Limited is growing +33.0% versus a year earlier (3y avg +6.4%). How much revenue grew versus a year earlier (YoY). The 3-year average next to it puts the single year in context.
How fast are earnings growing at Reliance Industries Limited (RELIANCE)?
Earnings per share at Reliance Industries Limited are growing +40.7% versus a year earlier. How much earnings per share grew versus a year earlier.
How much net debt does Reliance Industries Limited (RELIANCE) carry?
The net debt of Reliance Industries Limited is ₹2.5T (fiscal year 2026, ≈ 4.9 yrs of FCF). Debt minus cash on hand. The note shows how many years of free cash flow could in theory pay it off.
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Broad data
Nov 6, 2026