JPMorgan Holds Overweight on RIL, Flags O2C Risk

JPMorgan has maintained its Overweight rating on Reliance Industries with a March 2027 price target of Rs 1,675, citing comfortable relative valuation while flagging the oil-to-chemicals segment as the primary near-term risk. The brokerage's assessment acknowledges that RIL's current trading level offers relative value, but the O2C business, which spans refining and petrochemicals, introduces uncertainty that constrains the near-term thesis. The O2C segment's uncertain outlook reflects broader pressure on global refining margins and petrochemical spreads, which have been squeezed by overcapacity and softer demand in key export markets. JPMorgan's medium-term case, however, rests on a recovery in both refining margins and petrochemical spreads, which would directly expand O2C earnings contribution and support consolidated EBITDA. Beyond hydrocarbons, JPMorgan flags retail as a secondary valuation lever. Reliance Retail's scale and potential re-rating or monetization pathway offer upside optionality not fully priced into the current multiple. Investors should watch O2C margin data and any formal retail monetization signals as near-term indicators of whether the Rs 1,675 target trajectory holds.