Reliance stock gets stable outlook after Jio listing
Published on 11/03/2026 at 17:12 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSCredit outlook stays stable
- S&P Global Ratings affirmed Reliance Industries at A- and kept its outlook stable.
- The agency expects refining margins and digital services growth to support earnings through fiscal 2027.
- Jio Platforms' listing is expected to improve Reliance's funding flexibility as investment spending remains high.
Reliance Industries received continued credit support on Tuesday, November 3, after S&P Global Ratings affirmed its long-term issuer credit rating at A- and maintained a stable outlook. The agency said Reliance should continue generating strong cash flow to fund traditional operations and expansion in data centers and renewable energy.
Refining and digital services lead
S&P expects earnings from Reliance's oil-to-chemicals segment to benefit from elevated refining margins. It projects O2C EBITDA to grow 30% to 35% in the fiscal year ending March 2027, supported by lower global crude runs and disrupted crude flows from the Middle East.
The ratings agency also expects digital services to remain an important earnings driver. Rising wireless subscriber numbers and higher average revenue per user are expected to support EBITDA growth of 12% to 14% in the segment. S&P does not include a tariff increase in its base case.
Jio listing improves funding access
The recent listing of digital-services subsidiary Jio Platforms is expected to broaden Reliance's access to equity capital. S&P estimates that the primary share placement could provide INR 300 billion of fresh capital, equivalent to about 9% of its adjusted debt. The agency considers the transaction modestly positive for credit quality.
Reliance is still entering a period of elevated investment. S&P estimates capital expenditure could rise to INR 1.4 trillion to INR 1.5 trillion through fiscal 2028, compared with about INR 1 trillion in fiscal 2026. It expects the adjusted debt-to-EBITDA ratio to remain between 1.6x and 1.8x through fiscal 2028.
Reliance Industries at a glance
- Credit rating: A- from S&P Global Ratings
- Outlook: Stable
- Rating action: November 3, 2026
- O2C EBITDA outlook: Growth of 30% to 35% in fiscal 2027
- Digital services EBITDA outlook: Growth of 12% to 14%
The Indian equity market remains sensitive to energy margins, capital spending and the monetization of Reliance's digital and new-energy investments.
For investors, the stable rating outlook supports Reliance's financial flexibility, but the next phase will depend on whether new businesses generate cash flow fast enough to offset heavy investment requirements. S&P said rating pressure could emerge if debt-funded expansion rises without corresponding earnings growth.
