Jio IPO delay makes Jefferies slash RIL target price but says O2C benefiting amid disruption

Jefferies has cut its target price on Reliance Industries (RIL) as it pushes out its assumptions on a Jio tariff hike and factors in a likely delay in the Jio IPO. However, it highlights that Reliance’s oil-to-chemicals (O2C) business is emerging as a key beneficiary of Middle East–driven supply disruptions.

The global brokerage said it has lowered Jio’s FY27 and FY28 EBITDA estimates by 10% and 6%, respectively, after shifting its expected tariff increase from June 2026 to December 2026. “We cut our FY27-28 revenue and EBITDA estimates by 5-10% as we shift our tariff hike assumptions from Jun-26 to Dec-26,” the brokerage noted, citing both macro and regulatory factors.