Jefferies keeps Reliance at Buy as PE, PP and PET margins rise 84%
Jefferies reported 84% higher average PE, PP and PET margins than at the end of February, supporting Reliance Industries' O2C profitability. It rates Reliance Buy and expects refining margins to remain elevated through FY27.
Read the source at NDTV ProfitThe numbers
| Q2FY27 Singapore gross refining margins: | $14.1 a barrel |
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Why it matters to operators and investors
Jefferies maintains Buy on Reliance as average PE, PP and PET margins rise 84% versus end-February and refining margins are expected to stay elevated through FY27, strengthening the energy—not retail—outlook.
What to watch next
- Reliance's reported oil-to-chemicals earnings and operating cash flow
- PE, PP and PET margins versus end-February levels
- Refining-margin trends through FY27
- Reliance's refinery and petrochemical utilization disclosures
- Jefferies' next rating or earnings-estimate revision
The counter-case
The 84% margin increase may reflect a depressed end-February base rather than a durable earnings uplift. Higher feedstock costs, weaker demand or added capacity could reverse the improvement. Jefferies is reiterating Buy, not upgrading, and this energy outlook provides no direct evidence of stronger Reliance Retail performance.