Meta deal, 49th AGM, stock at 52-week low: Why are analysts bullish on RIL?

Reliance Industries (RIL) share price gained nearly 2 per cent in intraday deals on Wednesday to hit ₹1,300 mark following the deal announcement with Meta for a data centre project in Gujarat.  The stock which hit a new 52-week low at ₹1,257.50 on June 09, 2026, has slipped around 9 per cent in the last one month, and tanked 12 per cent from its 52-week high of ₹1,474 hit in January this year.  Analysts attribute the recent weakness to the company’s cautious forecast for financial year 2026-27 (FY27) amid headwinds from West Asia war. However, they suggest this weakness can be bought into from a medium-to-long term horizon.  The RIL stock, according to G Chokkalingam, founder and head of research at Equinomics Research, is under pressure after the Government decided to levy export duty (in March 2026) on the sale of petrol and diesel in the international markets in the backdrop of West Asia war. Investors, he said, are also cautious ahead of the 49th AGM later this month.  “That said, most of RIL’s business verticals have value from a medium-to-long term perspective. Foray into green energy, data centres and reducing dependence on the oil & gas business augur well for RIL. At the current levels, one can buy the stock from a 1 – 3 year perspective for around 15-20 per cent gain,” he said.  ALSO READ | Analysts stay bullish on IndiGo stock as the FY30 vision takes shape  In its annual report, too, RIL cautioned about headwinds from the West Asia conflict and said that the FY27 outlook remained ‘extremely vulnerable to geopolitical, macro-economic and policy risks.’ Global oil demand, RIL had cautioned, was likely to be sluggish this financial year owing to high oil prices and a likely economic slowdown. 

RIL-Meta data centre deal

  On Wednesday, RIL announced a partnership with Meta Platforms, Inc. for a data centre project in Jamnagar, Gujarat with a capacity of 168 MW to be delivered within two years, with an option to scale.  Under the agreement, RIL will provide comprehensive end-to-end services spanning the entire lifecycle of the data centre – from design and construction to the ongoing management of utilities, renewable power supply, network connectivity, and fully managed operational services.  “RIL is slowly moving away from the oil & gas businesses and diversifying into consumer-oriented businesses. Even data centres, to that extent, is non-oil & gas segment. Such ventures will ultimately lead to rerating of the stock,” Chokkalingam said. 
The company, said Gaurang Shah, head investment strategist at Geojit Investments, is following up on its plans laid out earlier and is a step in the right direction. “I expect a lot more investment into data centres by RIL in the years ahead. We have a buy call on RIL with a target price of Rs 1540 levels in 18 months,” Shah added. 
  Demand for data centers, meanwhile, continues to outpace supply, said analysts at Jefferies in a recent note, with hyperscaler capex accelerating and chip volume forecasts implying GWs of capacity ahead of feasible data center delivery.   “Our Semis Accelerator model estimates capacity rising from ~0.8 GW in 2023 to ~10.8 GW by 2026 and ~42 GW by 2028, signaling a step-change in global deployment. This expansion is being driven by supply chain constraints, power availability, and siting challenges in the US, which are pushing hyperscalers and developers to prioritize Europe, Asia, and Australia as the next phase of the AI infrastructure buildout,” the Jefferies note said. 

RIL AGM

  Among key announcements, investors, analysts said, expect clarity on the likely roadmap for the Reliance Jio IPO at the AGM. That apart, the Mukesh Ambani-led firm, reports suggest, will seek shareholders’ nod for approval of internal transactions exceeding ₹16.64 trillion spread over the next five fiscal years involving digital services subsidiaries Jio Platforms and Reliance Jio Infocomm.  From a technical standpoint, RIL stock needs to surpass the immediate hurdle of ₹1,320 and sustain above it for a meaningful reversal, suggests Kunal Shah, senior research analyst at Mirae Asset ShareKhan, which would signal a potential change in trend and attract fresh buying interest in the counter. 
 

  “The overall structure suggests that while the stock remains under pressure, a decisive move above resistance could shift momentum in favour of the bulls,” Shah said.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions. 

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