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The Gist
News and Features
Global Philippines Fine Living
Insights
INVESTMENT STRATEGY
Economy Stocks Bonds Currencies
THE BASICS
Investment Tips Explainers Retirement
Webinars
2024 Mid-Year Economi Briefing, economic growth in the Philippines
2024 Mid-Year Economic Briefing: Navigating the Easing Cycle
June 21, 2024
Investing with Love
Investing with Love: A Mother’s Guide to Putting Money to Work
May 15, 2024
retirement-ss-3
Investor Series: An Introduction to Estate Planning
September 1, 2023
View All Webinars
Downloads
economy-ss-9
Economic Updates
Quarterly Economic Growth Release: 5.4% Q12025
May 8, 2025 DOWNLOAD
investment-ss-3
Economic Updates
Policy rate views: Uncertainty stalls cuts
May 8, 2025 DOWNLOAD
grocery-2-aa
Economic Updates
Inflation Update: BSP poised for a string of rate cuts as inflation cools
May 6, 2025 DOWNLOAD
View all Reports
Bonds Market Movements Top Picks Issuer List
  • Top Picks
  • Reliance Industries
Sovereign Bonds

Reliance Industries

  • Sector: Manufacturing
  • Sub Sector: Diversified Conglomerates
  • Country: India
  • Region: India
  • Bond: RILIN 4.125 25
  • Indicative Yield-to-Maturity (YTM): 5.531% (Indicative as of March 2)
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Fundamental View

AS OF 29 Apr 2025
  • We are comfortable with Reliance’s large diversified scale of operations and dominant presence in various key sectors (refining, petrochemicals, retail and telecom), which allows for earnings resilience.

  • We believe a lackluster oils-to-chemicals outlook is well mitigated by strong outlooks for telecom and retail.

  • Plans to ramp up its renewable energy business could provide the next leg of growth and improve ESG perception.

  • Reliance incurs significant capex that has weighed on free cash flow generation, though we acknowledge its historically prudent financial management and robust credit metrics that provide ample elbowroom for some credit profile deterioration.

Business Description

AS OF 29 Apr 2025
  • RIL is an Indian diversified conglomerate engaged in oil & gas refining, marketing, petrochemicals, organized retail, telecom and digital services, amongst others. It is the largest company in India by revenue, profits, exports and market capitalization (INR 20 tn).
  • It is the second largest refiner in India and produces petroleum products such as petrol, high-speed diesel (HSD), aviation turbine fuel (ATF), LPG and lubricants.
  • It is the largest petrochemicals producer in India, boasting production of ~38 mn tons in FY20. Through its integrated Jamnagar refinery complex, it produces Polymers/Plastics, Elastomers (synthetic rubber) and Polyester products.
  • It is the largest retailer in India in terms of revenue. It operates 18.8k stores (as of March 2024) to sell products ranging from consumer electronics, fashion and lifestyle, grocery, petrol retail and telecom and digital services. It launched its online retail channel, 'JioMart', in December 2019.
  • Reliance Jio is the largest mobile telecom operator by subscriber base (482 mn as of March 2024) in India and boasts the widest 4G wireless network in the country.
  • In 2021, RIL announced investments to the tune of INR 750 bn/ $10 bn (for next 3 years) to build a renewable energy ecosystem which will include 4 giga factories. Set to be located in Gujarat, the factories will produce solar modules, hydrogen, fuel cells and battery grid to store electricity. Long-term goals also include building 100 GW of PV solar plants by 2030.

Risk & Catalysts

AS OF 29 Apr 2025
  • Reliance’s O2C (oil-to chemicals) margins remain under pressure from global tariff-led growth slowdown concerns and persisting oversupply conditions in China.

  • Reliance incurs significant capex at historically high levels, particularly from continued investments into its O2C, retail, and nascent renewables businesses. This has weighed on its free cash flow generation, though we take comfort in Reliance’s historically prudent financial management and robust credit metrics.

  • Reliance faces key-person risk; 65-year old Chairman Mukesh Ambani has begun to hand over the reins of the company’s different business divisions to his children.

Key Metric

AS OF 29 Apr 2025
INR bn FY21 FY22 FY23 FY24 FY25
Debt to Book Cap 25.9% 26.4% 35.3% 33.1% 31.9%
Net Debt to Book Cap 24.3% 23.4% 29.9% 26.1% 24.8%
Debt/Total Equity 34.9% 35.9% 54.5% 49.6% 46.9%
Debt/Total Assets 21.1% 21.3% 28.1% 26.1% 24.3%
Gross Leverage 3.5x 2.9x 3.2x 2.8x 2.9x
Net Leverage 3.2x 2.6x 2.7x 2.2x 2.2x
Interest Coverage 3.1x 5.7x 5.0x 7.0x 6.8x
EBITDA Margin 16.6% 15.3% 15.9% 17.7% 16.9%
Scroll to view columns right arrow

CreditSight View Comment

AS OF 29 Apr 2025

We have a Market perform recommendation on Reliance (RIL); we prefer its 2032 and would avoid its 2045 and 2052. We see room for RIL 2032 to tighten 10-15 bp versus Bharti 2031 and PTTGC 2032. We like RIL’s large diversified operations and dominant market shares in key sectors (refining, retail and telecom) that boosts earnings resilience. Its growing renewable business could aid ESG investor sentiment too. While we acknowledge persisting weakness in the O2C segment and RIL’s elevated capex needs, we think the impact is mitigated by RIL’s prudent financial management and healthy credit metrics that provide ample elbowroom for some credit profile deterioration. While key man risk remains a concern, we take comfort in gradually progressing succession plans.

Recommendation Reviewed: April 29, 2025

Recommendation Changed: June 30, 2021

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