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Reliance Industries Limited (RELIANCE) Fair Value & Analysis

Energy · IN · Market cap ₹17.6T (≈ $186B) · ISIN INE002A01018

What is Reliance Industries Limited really worth?

RI Reliance Industries Limited RELIANCE · NSE
Price₹1,322
Fair Value₹751.26
Upside−43.2%
Quality50/100

A solid business, but trading 76% above our fair value of ₹751.26.

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Strengths

Healthy Growth (revenue 5y +17.8 %/yr)
Low debt · generates free cash flow

Risks

!Thin margins · 7.6% net margin
!Mixed vs. peers (7/15)
!Moderate moat 50/100
!Weak on dividend: 9 out of 100

For context

·0.45% dividend yield
Evidence: High Range ₹485.82 – ₹1,033

Fair value as of: Sep 5, 2026

From 26 valuation models · updated today

Share price +3.3% over the past month.

What runs behind every stock

69 individual criteria per stock, every one traceable See the method →

What matters now

  • The price sits above even our optimistic bull case (₹1,033). The favourable scenario is already priced in.
  • Solid but not exceptional quality (50/100) and above fair value, neither a clear bargain nor a standout compounder.
  • A fairly wide model range (₹485.82 to ₹1,033) leaves room in how you read the outcome.

Price vs Fair Value (5 years)

₹988,084 ₹886.05 Fair Value ₹751.26 May 2021 Sep 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Sep 5, 2026.

How to read this chart

60‑month range ₹886.05 – ₹988,084 · fair‑value band ₹485.82 – ₹1,033 · the ₹1,322 price screens above the ₹751.26 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Sep 5, 2026.

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Analysis

Reliance Industries Limited (RELIANCE) currently trades at ₹1,322, while our model-based Fair Value estimate is ₹751.26, implying the stock looks roughly 76.0% overvalued today. The Quality Score stands at 50/100 (solid quality), in the Energy sector. 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 ₹1,322 price. Bear case: the Dividend Discount group reads lowest at ₹94.61, and 25 of the 26 models stay below the price. Evidence for this calculation is high.

Over the trailing twelve months, Reliance Industries Limited generated revenue of ₹10.6T at a net margin of 7.6%. Revenue grew 12.5% year over year. It earns a return on equity of 9.1%. Net debt stands at ₹2.5T. Fundamentals as of Sep 5, 2026

Our scenario range runs from ₹485.82 (bear case) to ₹1,033 (bull case); at ₹1,322, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 18% below its 52-week high and 3% above its 52-week low, currently below its 200-day average. For context, the median of 10 Energy peers we cover trades at −60% fair-value upside, at −43%, RELIANCE screens cheaper than that median.

Fair Value models

This estimate rests on fiscal year 2026 figures, and about 5 months have passed since. In that time the company retained roughly ₹23.07 per share, which is 3.1 % of the fair value. The fair value deliberately does not add this in: the models value reported figures, not a projection.

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted, family-balanced blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small. Every input is real reported data, nothing guessed.

Model 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. Evidence
Highest evidence
FCF DCF ₹424.92 ₹858.16 ₹1,640 76
Residual Income ₹575.52 ₹633.21 ₹987.85 75
EPV ₹600.27 ₹722.47 ₹831.10 74
All 26 models by family
DCF Models
FCF DCF ₹424.92 ₹858.16 ₹1,640 76
Owner Earnings ₹62.84 ₹192.74 ₹427.13 69
5Y Revenue Exit ₹515.91 ₹1,015 ₹1,696 70
5Y EBITDA Exit ₹447.03 ₹873.54 ₹1,406 73
5Y P/E Exit ₹467.22 ₹914.88 ₹1,425 69
10Y Revenue Exit ₹459.61 ₹930.67 ₹1,659 64
10Y EBITDA Exit ₹436.35 ₹825.36 ₹1,413 66
10Y P/E Exit ₹450.00 ₹856.23 ₹1,428 62
Earnings-Based
Graham-Dodd ₹405.89 ₹1,836 ₹2,518 64
Lynch FV ₹479.67 ₹685.24 ₹890.81 61
PEG = 1.0 ₹479.67 ₹685.24 ₹890.81 57
EPV ₹600.27 ₹722.47 ₹831.10 74
Dividend Discount
Gordon GGM ₹52.91 ₹115.50 ₹194.34 65
DDM Multi-Stage ₹52.91 ₹94.61 ₹120.37 66
Multiples
P/E Multiple ₹626.74 ₹835.66 ₹1,045 63
P/S Multiple ₹703.12 ₹937.50 ₹1,172 58
P/B Multiple ₹761.04 ₹1,015 ₹1,268 55
EV/EBIT ₹579.85 ₹803.87 ₹1,028 66
EV/EBITDA ₹502.86 ₹701.22 ₹899.57 67
EV/Revenue ₹564.04 ₹845.29 ₹1,127 53
Asset-Based
NCAV (Graham) ₹332.37 ₹445.37 ₹664.73 54
Growth DCF
Growth DCF ₹423.77 ₹831.28 ₹1,562 74
Rev-Margin DCF ₹515.91 ₹998.56 ₹1,616 70
Economic Profit
Residual Income ₹575.52 ₹633.21 ₹987.85 75
ROIC Compounder ₹600.27 ₹795.26 ₹1,081 71
Growth Earnings
Growth-Adj P/E ₹633.07 ₹904.38 ₹1,176 67

Widest divergence: Growth Earnings (₹904.38) versus Dividend Discount (₹94.61). Highest evidence: FCF DCF (76).

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Key figures & financial health

P/E ratio 22.2
P/S ratio 1.69 P/E × margin
EPS (TTM) ₹59.64 price ÷ EPS = P/E 22.2
Dividend yield 0.5% payout 10.1%
Net margin 7.6% FY2026
Return on equity 9.1% TTM
More key figures
Profitability
Return on assets (EBIT) 5.9% avg 5y
Operating margin 10.0% TTM
Growth
Revenue (TTM) ₹10.6T TTM
Revenue growth (YoY) +12.5% 3y avg +6.4%
EPS growth (YoY) −12.6%
Balance sheet & cash flow
Free cash flow ₹519B FY2026
Net debt ₹2.5T FY2026 · ≈ 4.9 yrs of FCF

Figures from reported company fundamentals · as of Sep 5, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 50/100

Of which business quality 50 · Market factors (momentum, volatility) 51

Profitability 34
Margins and returns on capital today
Quality Growth 45
Are margins and returns improving?
Cashflow 49
Earnings quality: real cash, not paper profit
Fin. Strength 47
Balance sheet, leverage, solvency risk
Investment 51
Disciplined investing over empire-building
Low Volatility 94
Calm price path (market factor)
Momentum 39
Price trend over the last 3–12 months (market factor)
52W Momentum 25
Distance to the 52-week high (market factor)
Net Issuance 82
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

All values are scores from 0 to 100 (100 = best against fixed, research-based bands), not percentages. The three market factors (momentum, 52-week proximity, low volatility) are displayed but carry zero weight in the headline number: market sentiment is not a business property.

About the company

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. It operates through the Oil to Chemicals, Oil and Gas, Retail, Digital Services, and Others segments.

Full company description

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. 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.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2022 – FY2026 · reported fiscal years

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.

Growth Quality 85/100
Revenue growth appears healthy and is supported by profitability and cash-flow quality.
Latest Revenue (FY 2026)
₹10.6T
Latest YoY
+9.6%
Avg. revenue growth/yr (3Y) 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.
+6.4%
Avg. revenue growth/yr (5Y) 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.
+17.8%
Avg. revenue growth/yr (21Y) 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.
+14.1%
Value creation/yr (5Y, in INR) Earnings growth per share (CAGR 5 years) plus dividend yield: value created per share and year. 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% (9.7 + 0.5)
Revenue +11.0%/yr
FY22 ₹7.0T
FY23 ₹8.8T
FY24 ₹9.0T
FY25 ₹9.6T
FY26 ₹10.6T
Net income +7.4%/yr
FY22 ₹607B
FY23 ₹667B
FY24 ₹696B
FY25 ₹696B
FY26 ₹808B
Character of growth · EPS growth decomposed (2015-2026) +9.8 % p.a.
Revenue per share +11.6 %

of which total revenue +13.2 % · buybacks/dilution −1.4 %

EBIT margin +2.4 %
Tax rate −0.3 %
Residual (interest, one-offs) −3.6 %

Annual growth per factor. These are factors, not summands: multiplied they give the EPS growth rate, added they do not quite. Start and end points are 3-year averages (details on hover).

RELIANCE screens 76% overvalued. Compare with Valero Energy Corporation →

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Cite: Fair Value Calculator (2026). "Reliance Industries Limited Fair Value". https://www.fairvalue-calculator.com/stock/RELIANCE

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Oil & Gas Refining & Marketing · 109 stocks

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.

Quality Score 50 · Below median
Fair Value upside −43% · Below median
Return on equity (TTM) 9% · Above median
Return on assets 4% · Below median
Net margin (TTM) 8% · Top 25%
Operating margin (TTM) 10% · Above median
Revenue growth 13% · Above median
Dividend yield (TTM) 0.5% · Bottom 25%
Debt / equity 0.30× · Lower than median

Valuation Multiples vs Oil & Gas Refining & Marketing median · lower = cheaper

P/E (TTM) 22.2× · Pricier than median
P/B 1.95× · Pricier than median
P/S (TTM) 1.66× · Pricier than 75% of peers
P/FCF 0.4× · Cheaper than median
EV/EBITDA 11.0× · Pricier than median
PEG 0.82× · Cheaper than median

Strength profile in five axes (Snowflake)

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUEFUTUREPASTHEALTHDIVIDEND
This stock
VALUEFUTUREPASTHEALTHDIVIDEND
Sector peers
VALUE0 · sector 13
FUTURE63 · sector 15
PAST37 · sector 33
HEALTH85 · sector 83
DIVIDEND9 · sector 55

VALUE 0: the price sits above our fair-value range.

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

Oil & gas

Similar stocks

10 more Oil & Gas Refining & Marketing stocks, each showing price versus our Fair Value estimate (as of Sep 5, 2026).

Stock Price Fair Value vs Fair Value
Valero Energy Corporation VLO $352.36 $127.32 −64%
Marathon Petroleum Corporation MPC $368.83 $133.18 −64%
Phillips 66 PSX $246.58 $99.41 −60%
Neste Oyj NESTE €31.28 €3.83 −88%
Formosa Petrochemical Corporation 6505 75.80 TWD 15.32 TWD −80%
HF Sinclair Corporation DINO $87.93 $44.96 −49%
Bharat Petroleum Corporation BPCL ₹318.00 ₹846.81 +166%
SK Innovation Co 096770 131,500 KRW 53,541 KRW −59%
Sunoco LP, SUN $75.55 $53.36 −29%
S-Oil Corporation 010950 140,900 KRW 19,441 KRW −86%

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Frequently asked questions

Is Reliance Industries Limited (RELIANCE) overvalued or undervalued?
As of Sep 5, 2026, our model estimates a fair value of ₹751.26 versus a price of ₹1,322, about −43% upside (overvalued).
What is the fair value of RELIANCE?
Our model-based fair value for Reliance Industries Limited is ₹751.26 (as of Sep 5, 2026), built from audited fundamentals. The current price: ₹1,322.
What is the quality score of RELIANCE?
Reliance Industries Limited has a Quality Score of 50/100. 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 revenue of Reliance Industries Limited (RELIANCE)?
Reliance Industries Limited reported trailing-twelve-month revenue of about ₹10.6T (latest available figure, as of Sep 5, 2026).
What is the net profit margin of RELIANCE?
The net profit margin of Reliance Industries Limited is about 7.6%, meaning it keeps roughly 7.6% of revenue as net income. Based on the latest reported figures.
Does Reliance Industries Limited pay a dividend?
Reliance Industries Limited currently shows a dividend yield of about 0.45% relative to its recent price (as of Sep 5, 2026).
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