S&P Upgrades Reliance Industries’ Credit Rating to ‘A-’ on Strong Consumer and Telecom Businesses

New Delhi, Dec 2025 : S&P Global Ratings on Thursday upgraded Reliance Industries Ltd’s (RIL) long-term issuer credit rating from ‘BBB’ to ‘A-’, citing the company’s growing portfolio of stable consumer-facing businesses that are expected to enhance earnings and cash flow stability.

The global rating agency highlighted that RIL’s increasing contribution from less cyclical consumer sectors, including digital services and retail, will strengthen the quality of its earnings. “The company’s strong competitive position across its businesses will further drive earnings and cash flow, which should comfortably cover significant investments in its key operations,” the statement said.

S&P also raised the long-term ratings on RIL’s senior unsecured debt to ‘A-’ from ‘BBB’, reflecting the agency’s confidence in the company’s market leadership and robust earnings potential. The stable outlook, it added, indicates that the conglomerate is well-positioned to maintain its leading role in core businesses while ensuring sufficient earnings to meet capital expenditure requirements over the next 12–24 months.

Reliance’s dominant position in India’s telecommunications sector, led by Reliance Jio, remains a key driver of profitability. The rating agency expects wireless subscribers to grow by 3–6% in the next 12–24 months, supported by churn from competitors with limited network investment. Average revenue per user (ARPU) is also projected to rise due to subscriber upgrades to higher-priced plans and increased data consumption, reinforcing the telecom segment’s contribution to overall revenue.

S&P noted that RIL has historically led the industry in tariff revisions, enhancing revenue potential. Consolidated EBITDA for the company is expected to expand by 12–14% to Rs 1.85–1.95 trillion in fiscal 2026. The agency projected that digital services, including JioStar, will contribute around Rs 800 billion, or 43% of EBITDA, while the retail segment is estimated to add Rs 270 billion, or 14%.

The upgrade underscores RIL’s strategic focus on high-margin, consumer-oriented businesses alongside its traditional energy operations, reflecting resilience amid market cycles and reinforcing investor confidence in the conglomerate’s long-term growth trajectory.

(The content of this article is sourced from a news agency and has not been edited by the Mavericknews30 team.)