How will the partnerships with Google and Meta affect Reliance's revenue growth and margins in the short to medium term?

Fundamental outlook – The Google and Meta tie‑ups give Reliance a fast‑track entry into high‑margin AI‑driven digital services (cloud, advertising, data‑analytics, and consumer‑app ecosystems). In the next 12‑18 months the partnership is likely to add ~2‑3 % incremental revenue growth YoY on top of the 10‑12 % base that the Jio‑Digital Services franchise is already delivering, as Reliance begins to monetize AI‑enhanced ad inventory and premium data‑services for enterprise clients. The upside is amplified by cross‑selling opportunities across Reliance’s retail, telecom and media platforms, which can lift average revenue per user (ARPU) in the highly competitive Indian market. However, early‑stage implementation costs – cloud‑infrastructure upgrades, talent acquisition, and revenue‑share arrangements with Google/Meta – will pressure EBITDA margins, potentially pulling the consolidated margin down 30‑40 bps in FY24 before a mid‑term margin expansion of 60‑80 bps materialises as the AI‑powered services scale and the revenue‑share fees become a smaller proportion of total sales.

Technical & market dynamics – The stock has broken above its 50‑day EMA (~₹2,740) and is now testing the 200‑day EMA (~₹2,890), with RSI hovering around 58 – a classic “buy‑the‑dip” setup. The partnership announcement lifted sentiment to a solid +70, and volume has been above the 20‑day average, suggesting strong buyer conviction. In the short term, support lies near ₹2,720 (the March low) and a break above ₹2,900 would open the path to the next resistance at ₹3,050 (the prior high). Given the positive earnings catalyst and the AI narrative, a long‑biased stance with a 5‑10 % target over the next 3‑6 months is reasonable, provided the stock respects the ₹2,720 support. Risk factors include execution delays, regulatory scrutiny on data/AI, or a broader market pull‑back that could compress the AI‑premium. A stop‑loss around the 50‑day EMA (≈₹2,730) would protect against downside while allowing the upside from margin‑improving AI revenues to play out.