Reliance Industries Ltd (RIL) could unlock its next $50 billion in market value by aggressively pivoting to new energy and AI infrastructure, according to Morgan Stanley. The brokerage has maintained its ‘Overweight’ rating on the stock, with a price target of Rs 1,617, implying a 7% upside from RIL’s last close of Rs 1,518 on July 3.
At a current market cap of nearly $240 billion, India’s largest company by revenue has long relied on reinventing itself — from petrochemicals to telecom to retail. Now, Morgan Stanley’s latest research suggests its next reinvention will revolve around powering the generative AI (Gen AI) boom and scaling its new energy vertical.
Key to this plan is RIL’s massive Jamnagar complex, where it is retooling its energy ecosystem to support chemicals, refineries and now high-density data centres. The company aims to build AI infrastructure capable of handling 1GW of data centre capacity, which could eventually house over 670,000 of NVIDIA’s cutting-edge B100 chips. To power this, Reliance is ramping up green energy production and aims to integrate AI across its internal processes, positioning itself as a national backbone for India’s AI ambitions.
Morgan Stanley estimates that the new energy vertical alone could create up to $60 billion in value over time. The brokerage also flagged that global solar panel prices have found a floor after last year’s slump, with large producers returning to capital discipline — a tailwind for Reliance’s renewables plans.
The brokerage expects near-term earnings to hold steady. For the quarter ending June 2025, Morgan Stanley forecasts flat refining margins with potential for an upside surprise. Its FY26 EPS estimate stands at Rs 56.47, rising to Rs 67.29 in FY27 and Rs 74.68 in FY28, indicating confidence in RIL’s diversified earnings pipeline spanning energy, retail and telecom.
Reliance’s consumer-facing businesses also continue to trade at healthy valuation multiples, Morgan Stanley noted, reinforcing its view that the group’s funding strategy for new bets remains strong.
For investors, the focus now shifts to clearer earnings visibility from AI and new energy as global peers have seen re-ratings purely on Gen AI exposure. With India positioning itself as an alternative data centre hub, Reliance’s multi-pronged play — “Make in India, Power AI Globally” — could shape its next decade of growth.
