Reliance stock in focus after S&P affirms A- rating

Published on 11/04/2026 at 16:49 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Reliance stock is in focus after S&P affirmed the company's A- rating with a stable outlook. Jio's listing improves funding flexibility.

Rating outlook supports expansion plans

S&P expects Reliance's consolidated EBITDA to grow 19% to 23% in fiscal 2027.
Jio Platforms' listing is expected to improve funding flexibility as investment in digital services, data centers and renewable energy rises.
Leverage, capital allocation and the cash generation of new businesses remain the main credit risks.

Reliance, INE002A01018, Illustration mit AI erstellt.

Reliance stock is in focus after S&P Global Ratings affirmed Reliance Industries' long-term issuer credit rating at A- and kept the outlook stable on Tuesday, November 3, 2026. In its rating action, S&P Global Ratings cited resilient earnings, strong cash generation and improved funding flexibility after the listing of Jio Platforms.

Stable outlook rests on cash flow

S&P expects Reliance to generate sufficient cash to fund growth in its traditional businesses and newer activities, including data centers and renewable energy. The agency projects consolidated EBITDA to rise 19% to 23% to between INR 2.15 trillion and INR 2.25 trillion in fiscal 2027.

The rating outlook also reflects expectations for continued growth in the group's key businesses. S&P forecasts EBITDA in the oil-to-chemicals segment to increase 30% to 35% in the fiscal year ending March 2027, supported by higher integrated refining margins. Digital-services EBITDA is projected to grow 12% to 14% as wireless subscribers and average revenue per user increase.

Jio listing broadens funding options

S&P expects the primary placement of new Jio Platforms shares to provide about INR 300 billion in fresh capital, equivalent to roughly 9% of Reliance's adjusted debt. The agency considers the transaction modestly positive for credit quality because it broadens access to equity funding for a major growth business.

At the same time, investment demands remain high. S&P estimates capital expenditure could reach INR 1.4 trillion to INR 1.5 trillion through fiscal 2028, compared with about INR 1 trillion in fiscal 2026. Its base case puts adjusted debt to EBITDA at 1.6x to 1.8x through fiscal 2028 and below 2x over the next 12 to 24 months.

Leverage remains the key risk

For investors, the stable outlook provides credit support but does not remove execution risks. S&P said rating pressure could emerge if Reliance pursues debt-funded expansion without corresponding earnings growth or if earnings and cash flow weaken enough to push adjusted leverage materially above 2x. The durability of refining margins and the cash generation of new businesses will therefore remain central to the credit profile.