RIL AGM Takeaways – aspires to double the size by FY28

Reliance Industries laid out an ambitious roadmap to double the company’s current size by FY28, and a bonus of 1:1 after a long gap

RIL’s intends to double Revenue/EBITDA from Retail and JIO over the next 3–4 years

RIL’s retail business is now among the top 30 retailers globally by revenue, enabled by an investment of Rs 1.25 lakh crore over FY20–24. The company wants to make use of “deep tech” in adding value to operations, with use of data-driven analytics, robotics-driven warehouse solutions and tech usage to enhance customer experiences.

JIO now has 490mn subscribers, carrying ~8% of global mobile traffic and responsible for 33% of consolidated EBITDA as of FY24. RIL has filed 350 patents in 6G and 5G tech. It laid out its strategy in AI stating Jio is developing a suite of tools and platforms that span the entire AI lifecycle, called Jio Brain.The focus of RIL to emerge as a “deep tech” powerhouse, leveraging the same to create new revenue/earnings streams and improving service offerings/efficiency. The company aims to invest meaningfully in developing AI capabilities and infra with gigawatt-ready data centres in Jamnagar one of the intended outcomes of this focus

The new energy business is expected to be of similar size to its Oil To Chemical segment in 5–7 years (OTC EBITDA in FY24 at Rs 62400 crore), which is quite ambitious given the announced investment plans of Rs  75,000 crore in the segment. The company highlighted multiple projects designed to create an integrated manufacturing ecosystem: 1) Solar (enabling solar facilities for 10GW power capacity). 2) Batteries (30GWh capacity facilities shall be set up in the next 1–2 years). 3) Hydrogen electrolyser manufacturing (multi-GW facility likely to be ready by CY26). 

RIL announced new capacity expansions in the petchem value chain, targeting to add 1.5mtpa of PVC/CPVC capacities, 1mt of specialty polyester capacity and 3mtpa of PTA capacity by FY27. RIL is also growing its ethane sourcing from the USA, adding three more VLEC to its existing fleet of six – this will potentially add 1.9mt of ethane-based petchem output by FY27E.

RIL announced several new initiatives for the home broadband and JIO ecosystem, including a brand-new OS for JIO set-top boxes, which is an easy-to-use system supporting the highest quality audio/video and also has a revamped voice assistant.

Overall outlook: As per the management, Jio and Retail are expected to double their revenues and EBITDA in the next 3-4 years. A bulk of the growth in Telecom segment is likely to be ARPU growth led along with Broadband.