Shares of Reliance Industries surged 3% on Monday after the conglomerate’s better-than-expected quarterly earnings and upbeat performance in its telecom and retail divisions prompted analysts to upgrade their outlook.

Led by billionaire Mukesh Ambani, Reliance’s stock rallied as much as 3.4%, hitting its highest level since late October and emerging as the top gainer on India’s benchmark Nifty 50 index.

"Valuations have now become appealing," said Antique Broking in a research note, adding that Reliance's telecom arm shows promising momentum with strong subscriber growth and a likely tariff increase over the next 12 to 15 months.

The company reported robust fourth-quarter profits last Friday, driven by strength across its consumer-facing businesses, particularly telecom and retail.

Following the earnings release, at least 13 out of 32 analysts covering the stock raised their price targets, while 11 analysts upgraded their ratings, according to data compiled by LSEG.

Reliance, the third-largest weight on the Nifty 50, helped lift the index by 0.7% for the day.

So far in 2025, Reliance shares have gained approximately 11%, significantly outperforming the broader Nifty’s 2% rise.