S&P Global Ratings has upgraded Reliance Industries Limited’s credit rating from ‘BBB+’ to ‘A-’, while maintaining a stable outlook. According to the agency, Reliance’s consumer-focused businesses such as digital services and retail are playing a major role in strengthening the company’s earnings and cash flow.

Strong earnings from digital and retail businesses
The report highlights that by fiscal year 2026, nearly 60 percent of Reliance’s operating cash flow could come from the digital and retail segments. The remaining 40 percent is expected to come from the oil-to-chemicals and oil-gas businesses. This indicates that Reliance’s earnings base is gradually shifting from volatile hydrocarbon operations to more stable consumer-driven sectors. S&P estimates that Reliance’s EBITDA could reach around ₹1.95 lakh crore by FY 2026.

Jio becomes the growth engine
According to the S&P report, Jio will continue to be a major revenue engine for Reliance. Jio’s wireless subscriber base is projected to grow by 3 to 6 percent over the next 12 to 24 months. ARPU (Average Revenue Per User) is also expected to rise, supported by higher-priced plans and increased data consumption. Digital services, including Jio and JioStar, are expected to generate nearly ₹80,000 crore in EBITDA in FY 2026, contributing about 43 percent of the company’s total earnings.

Retail business strengthens Reliance’s foundation
Reliance Retail is also emerging as a strong cash-flow contributor. The segment is expected to generate approximately ₹27,000 crore in EBITDA by FY 2026, accounting for nearly 14 percent of total earnings. With expanding store networks and a robust supply chain across India, retail has become one of the company’s most reliable business pillars.

Future investments in renewable and new energy
S&P stated that despite high levels of investment, Reliance is expected to maintain its strong market position and financial stability over the next 12 to 24 months. Annual capital expenditure may reach around ₹1.4 lakh crore. The company is also expected to significantly expand investments in renewable and new-energy ventures. While these segments are not yet contributing to earnings, they are projected to become major growth drivers over the next five years.