This IPO May Be The Biggest One Yet

Jio IPO imminent, AI infrastructure being built at Jamnagar, FMCG targeting Rs 1 trillion revenue, New Energy entering commercialisation 

Every year, Reliance Industries’ AGM is less an annual general meeting and more a statement of intent about the direction of one of the world’s most complex conglomerates. The FY26 edition was no different — and if anything, more consequential than most.

The chairman outlined an ambition to more than double consolidated EBITDA over the next five years, announced the imminent listing of Jio Platforms through a DRHP filing, signalled a deeper push into manufacturing across food, apparel and consumer electronics, and unveiled the execution phase of Reliance Intelligence — the company’s sovereign AI infrastructure play.

The Jio IPO 

The most immediately significant announcement from the AGM is the filing of the DRHP for Jio Platforms — a move that initiates the formal process toward what will almost certainly be one of India’s largest ever public listings. The IPO comprises a fresh issue of up to 270 million equity shares, representing approximately 2.9% of post-issue equity capital, with proceeds of Rs 275 billion earmarked primarily to repay Jio’s borrowings.

Motilal Oswal values Jio Platforms at approximately Rs 12 trillion enterprise value — based on 11.5x March 2029 EV/EBITDA — implying an equity value of Rs 10.7 trillion and an attributable value of Rs 525 per RIL share. Management’s strategic targets for Jio are expansive: migrating all subscribers to 5G by 2030 from the current 268 million already on 5G, delivering home broadband to every part of India through JioAirFiber, digitising Indian enterprises and small businesses, making AI accessible to all users, and taking India’s deep tech capabilities to global markets. Home broadband installations are now running at 60,000 per day — a rate that is accelerating meaningfully as non-line-of-sight capabilities expand the addressable market.

The satellite broadband ambition deserves particular attention. Jio has announced plans to build sovereign satellite broadband capabilities through a dual strategy — partnering with global constellation operators while evaluating development of its own Low Earth Orbit satellite constellation and ground station infrastructure. In a country where terrestrial broadband still cannot reach significant portions of the population, this is a genuinely differentiated long-term bet.

Reliance Intelligence 

The second most consequential announcement from the AGM is the operational progress at Reliance Intelligence — the company’s AI infrastructure, platform and services business. This is no longer a concept. The first 120 megawatts of AI infrastructure at Jamnagar is being commissioned by end-2026, powered entirely by renewable energy from the Kutch platform. The facility will house NVIDIA GB300 GPUs equivalent to more than 75,000 H100 GPUs on an inference basis, scalable to over 200,000 H100-equivalent GPUs.

The partnerships being built around this infrastructure are significant. Google AI Pro powered by Gemini is already being offered free to Jio users. A Meta collaboration enables sovereign deployment of Llama models with full transparency for Indian enterprises. Reliance Intelligence is developing multilingual AI solutions across 22 Indian languages through platforms including JioBharatIQ, AI Vyapar, JioHealthIQ, JioLearnIQ and JioKrishiIQ — targeting consumers, SMEs, healthcare, education and agriculture simultaneously.

“Similar to how RJio disrupted telecom services, RI aims to disrupt AI economics by making AI dramatically more affordable for Indian users by the end of the decade,” management stated. For a company that has already demonstrated it can execute a disruption playbook at national scale — as it did with Jio in 2016 — this is not an idle ambition.

RCPL 

Reliance Consumer Products — the FMCG arm — generated Rs 220 billion in revenue in FY26. Management’s target is Rs 1 trillion by FY30. The gap between those two numbers — a nearly 5x increase in four years — is either the most ambitious consumer staples target in Indian corporate history or a signal of how seriously Reliance is approaching the category.

The investment behind it is substantial. Rs 300 billion in capital expenditure is planned over the next three years — on top of Rs 100 billion already invested — in integrated food parks, reflecting a commitment to backward integration, manufacturing scale and long-term cost leadership. Distribution has already reached over 3 million outlets within three years of serious investment — a build-out that has taken established FMCG companies decades to achieve. Motilal Oswal assigns Rs 39 per RIL share to RCPL based on 2x FY28 gross sales — a modest valuation that implies meaningful upside if the Rs 1 trillion target is approached.

Reliance Retail

Reliance Retail has scaled to over 20,000 stores since its launch in 2006, and is now pushing into vertical integration — extending manufacturing from beverages and daily essentials into fresh produce, apparel and consumer electronics. Quick commerce is emerging as a growth engine, with Reliance leveraging its existing store network and supply chain rather than building standalone fulfilment infrastructure. Export capabilities are being developed for consumer businesses — a new growth vector beyond the domestic retail market.

Motilal Oswal values RRVL at approximately Rs 8.5 trillion enterprise value — a blended 28x EV/EBITDA — contributing Rs 500 per RIL share. The brokerage expects RRVL to deliver approximately 12% revenue CAGR over FY26-28, with EBITDA CAGR of approximately 10% as the faster ramp-up of lower-margin businesses weighs on blended margins.

The New Energy business — which has absorbed substantial capital investment over the last three years — is finally entering its commercialisation phase. Solar PV cell and module manufacturing lines were commissioned during FY26, achieving India’s first ALMM listing for HJT technology. Commercial solar revenues are expected to commence in FY27. Under construction are a 20 gigawatt integrated solar manufacturing ecosystem, a 40 gigawatt-hour battery giga-factory scalable to 120 gigawatt-hours, a renewable energy hub in Kutch, and green hydrogen and green ammonia initiatives. Motilal Oswal assigns Rs 174 per RIL share to the New Energy business — a valuation that will need to be revisited as revenues begin to flow.

Scorecard

At the consolidated level, Motilal Oswal builds in approximately 9-10% CAGR in EBITDA and PAT over FY26-28, with annual consolidated capex of Rs 1.25 trillion. Free cash flow of approximately Rs 1 trillion over FY26-28 is expected to drive a meaningful decline in consolidated net debt as the peak capex cycle in digital services passes. Digital services — primarily Jio — are expected to contribute approximately 80% of RIL’s incremental EBITDA, growing at 18% CAGR over FY26-28.