Reliance Enters Aluminum Business: Why Heavy CapEx Could Keep RIL Stock Under Pressure For 2 Years

Reliance Industries is set to enter the aluminum business, adding another capital-intensive venture to its growing portfolio. Dharmesh Kant, Head of Equity Research, Chola Securities, says the move could be negative for Reliance in the short to medium term as the company expands into businesses it has traditionally avoided. Recent forays include satellites, the Rolls-Royce AMCA engine partnership, coal gasification, new energy, green hydrogen, giga factories and data centres. With several projects requiring significant capital expenditure, concerns around returns and profitability could weigh on the stock. Analysts expect around 7–8% consolidated PAT growth in FY27, while valuations remain demanding.