S&P forecasts that digital services and the retail business will contribute about 60% of operating cash flow in fiscal 2026, while the oil-to-chemicals (O2C) and oil and gas segments will account for the remaining 40%. Shares of Reliance Industries Ltd ended at ₹1,538.40, down by ₹0.60, or 0.039%, on the BSE.

' on stronger cash flow stability, outlook stable

S&P Raises Reliance Industries to 'A-' on Stronger Cash Flow Stability, Outlook Stable

S&P Global Ratings has upgraded Reliance Industries Ltd's rating to A- with a stable outlook, citing improving earnings stability driven by the company's expanding consumer-focused businesses.

Key Highlights:

Rising earnings from the digital services segment reducing the group’s exposure to the volatile hydrocarbon industry.
Forecast: Digital services and retail business to contribute about 60% of operating cash flow in fiscal 2026.
Projected consolidated EBITDA to expand 12–14% to ₹1.85 trillion–₹1.95 trillion in fiscal 2026.
Estimated ratio of adjusted debt to EBITDA of 1.5x–1.6x through fiscal 2027, compared with 1.7x over the past two years.

Stable Outlook:

The agency expects Reliance to maintain strong market positions and expand cash flows despite heavy capex, with adjusted debt to EBITDA remaining below 2x over the next 12–24 months.

Financial Projections:

Digital services and JioStar expected to contribute about ₹800 billion, or 43%, and retail around ₹270 billion, or 14%, to consolidated EBITDA in fiscal 2026.
Energy-related earnings projected to remain stable at ₹750 billion–₹800 billion.
Capex projected at about ₹1.4 trillion through fiscal 2027, slightly below the peak outflow of ₹1.5 trillion in fiscal 2024.

Reliance Industries' Response:

The company has disclosed a net debt-to-EBITDA target below 1x, excluding spectrum liabilities, compared with 0.59x as of September 30, 2025.

Market Reaction:

Shares of Reliance Industries Ltd ended at ₹1,538.40, down by ₹0.60, or 0.039%, on the BSE.

Disclaimer:

Network18, the parent company of CNBCTV18.com, is controlled by Independent Media Trust, of which Reliance Industries is the sole beneficiary.

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