Reliance Industries has issued a strong rebuttal to reports suggesting the company had abandoned its ambitious battery manufacturing plans in India. The conglomerate categorically denied claims that it had halted lithium-ion battery cell production after facing challenges in securing Chinese technology partnerships.

Company Reaffirms Manufacturing Commitment

A spokesperson for Reliance Industries delivered an unequivocal statement on Monday, emphasising the company's unwavering commitment to its battery manufacturing vision. The company "strongly and categorically affirms that there has been no change in our plans for creating a world-leading battery storage manufacturing ecosystem from Cell to containerised ESS (energy storage system) and that they are progressing well in line with our target timelines."

Technology Partnership Challenges

Reports had emerged suggesting that the Mukesh Ambani-led conglomerate, which had planned to commence cell production this year, encountered obstacles in its technology acquisition efforts. The company had reportedly been in negotiations with Chinese firm Xiamen Hithium Energy Storage Technology to license critical cell technology.

Regulatory Environment Impact

The challenges faced by Reliance Industries reflect broader geopolitical tensions affecting technology transfers in critical sectors. China implemented export controls on lithium battery components in October, requiring exporters to obtain permits before sharing technology critical for energy storage and electric vehicle applications. These measures have tightened China's control over crucial battery technology transfers to international partners.

Strategic Repositioning

Following the partnership challenges, Reliance Industries has reportedly refocused its efforts on constructing battery energy storage systems. This strategic pivot allows the company to continue advancing its energy storage ambitions while navigating the complex regulatory landscape surrounding technology transfers from Chinese partners.

The company's reaffirmation of its battery manufacturing timeline suggests confidence in alternative pathways to achieve its energy storage manufacturing objectives, despite the setbacks in securing Chinese technology partnerships.

Reliance Industries shares extended their weak performance in 2026, declining 1.6% to an intraday low of ₹1,451.00 during afternoon trading on January 12. The oil-to-telecom conglomerate has already lost 8% of its value in 2026, with investors awaiting the company's December quarter (Q3FY26) results scheduled for January 16.

Analyst Recommendations and Price Targets

Despite the recent decline, brokerage firms maintain optimistic outlooks for Reliance Industries. Goldman Sachs raised its 12-month price target to ₹1,835.00 per share on January 9, implying approximately 25% upside from current levels. The brokerage reiterated its Buy rating, citing expectations that near-term retail moderation will be offset by improving refining fundamentals and steady telecom momentum.

Q3FY26 Earnings Expectations

Nomura estimates Reliance Industries' consolidated EBITDA at ₹47,600.00 crore for Q3FY26, representing a 4% quarter-on-quarter increase. The projected growth reflects mixed performance across business segments, with strong refining operations expected to partially offset challenges in petrochemicals and retail.

Oil-to-Chemicals Segment Outlook

The Oil-to-Chemicals (O2C) segment is anticipated to deliver robust performance with estimated EBITDA of ₹16,500.00 crore, marking a 10% quarter-on-quarter increase. This improvement is expected to be driven by:

• Sequential gains in gasoline, diesel, and jet fuel spreads
• Widening refining margins
• Partial offset from softer petrochemical margins

For the Upstream business, Nomura forecasts EBITDA of ₹4,900.00 crore, down 1% quarter-on-quarter, with lower volumes and softer average selling prices expected to be largely offset by favorable foreign exchange movements.

Retail and Telecom Performance Projections

The retail segment is likely to experience a softer quarter due to macro-driven slowdown in discretionary consumption and weak discretionary spending patterns. Goldman Sachs expects earnings growth moderation in retail due to base effects and festive timing considerations.

In contrast, Jio's telecom operations are expected to maintain resilient performance. Key projections for Jio include:

Market Concerns and Recent Performance

Reliance Industries shares have corrected approximately 8% over recent trading sessions despite outperforming the Sensex, Nifty, and sector peers over the past year. Analysts attribute the recent pullback to investor concerns regarding the company's exposure to Russian crude and slowdown in retail growth momentum. However, Goldman Sachs believes these concerns are overdone and expects limited impact on the company's medium-term earnings outlook.