Reliance Communications Limited (RCOM) AI Stock Analysis

• Market Cap: ₹2.57B
• Dividend Yield: N/A
• Average Volume (3M): 597.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.54
• Revenue Growth: -7.28%
• EPS Growth: -16.45%
• Country: IN
• Employees: 464
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -10.08
• Shares Outstanding: 2,765,533,000
• 10 Day Avg. Volume: 625,951
• 30 Day Avg. Volume: 597,592
• PEG Ratio: >-0.01
• Price to Book (P/B): >-0.01
• Price to Sales (P/S): 1.13
• P/FCF Ratio: 406.10
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: ₹0.93 ▼(-13.46% Downside)
• Action: Upgraded Date: 11/14/25
• Date: Action: Upgraded 11/14/25

Reliance Communications Limited is experiencing severe financial distress, with declining revenues, negative profitability, and high leverage posing significant risks. The technical analysis shows a bearish trend, further impacting the stock's outlook. The valuation is unattractive due to ongoing losses and lack of dividends. These factors collectively result in a low overall stock score.

Positive Factors

Infrastructure assets

RCOM retains a tangible telecom infrastructure base (fiber and related facilities). These assets underpin recurring wholesale/connectivity economics and provide a durable liquidation or monetization option that can generate cash over months and support a restructuring or asset-sale recovery.

Asset monetization potential

The company historically generated revenue via infrastructure monetization. That structural capability means management can pursue sales or long-term leases of fiber/towers to raise non-operating cash, reduce leverage, and rebase the business toward sustainable operations over a 2-6 month restructuring horizon.

Improving operating cash flow

A return to positive operating cash flow in 2025 signals initial stabilization of core operations and improved cash conversion. Persisting positive operating cash flow, even if modest, provides a foundation for meeting near-term obligations and funding essential network upkeep while strategic actions are pursued.

Negative Factors

Negative equity & high leverage

Negative shareholders' equity and extreme leverage are structural constraints that reduce financial flexibility. They raise insolvency risk, limit access to new credit, and force priority to creditor remediation over investment, constraining the company's ability to fund growth or absorb shocks over months.

Declining revenue and negative margins

Sustained revenue decline and negative operating margins erode the core business model's viability. Without durable top-line stabilization, profitability cannot recover, weakening cash generation and making it harder to service debt or attract partners—fundamental headwinds that persist absent structural change.

Weak free cash flow and liquidity

Limited free cash flow and a poor free-cash-to-net-income ratio indicate persistent liquidity strain. Even with operating cash improvements, insufficient free cash constrains debt servicing, capital expenditures, and strategic options, keeping the company dependent on asset sales or external support.

Reliance Communications Limited Business Overview & Revenue Model

Company Description

Reliance Communications Limited provides enterprise voice, data, video, and IT infrastructure solutions to enterprises, over-the-top (OTT) players, and network operators in India and internationally. The company offers business Internet, network, cloud networking, data center, enterprise voice, cloud telephony, and access number services; and collaboration services, which include audio and Web conferencing, as well as voice and various value-added wholesaling services for carriers and service providers. It also provides colocation, IT infrastructure and connectivity, and managed services. The company was formerly known as Reliance Communication Ventures Limited and changed its name to Reliance Communications Limited in June 2006. Reliance Communications Limited was incorporated in 2004 and is based in Navi Mumbai, India.

How the Company Makes Money

Reliance Communications generates revenue primarily through its mobile services, which include voice calls, SMS, and data plans for individual consumers. Additionally, the company earns income from broadband services and enterprise solutions, providing connectivity and data services to businesses. Key revenue streams include subscription fees from mobile users, one-time charges for broadband installations, and recurring charges for enterprise contracts. RCOM also benefits from partnerships with various technology and infrastructure providers, enhancing its service offerings and expanding its customer base. Factors contributing to its earnings include market penetration, competitive pricing strategies, and investments in network infrastructure to improve service quality.

Reliance Communications Limited Financial Statement Overview

Summary

Reliance Communications Limited is facing significant financial challenges. The company has declining revenues, poor profitability, and high leverage. The negative equity and high debt levels pose serious risks to financial stability. While there are slight improvements in cash flow, they are insufficient to offset the broader financial difficulties.

Income Statement

The income statement metrics reveal a challenging financial situation. The company has experienced significant declines in revenue, with a 6.53% decrease from 2024 to 2025, and consistently negative net income over the years. Gross profit margins have also deteriorated. Further, EBIT and EBITDA margins are negative, reflecting high operational costs relative to revenue. This indicates substantial profitability challenges and operational inefficiencies.

Balance Sheet

The balance sheet shows considerable financial distress. The company has negative stockholders' equity, indicating that liabilities far exceed assets, and a very high debt-to-equity ratio, which is concerning. The equity ratio is negative, highlighting a lack of financial stability and significant leverage. These factors suggest a high risk of financial instability.

Cash Flow

Cash flow metrics show modest improvement in 2025 with a positive operating cash flow, but free cash flow remains limited. The free cash flow to net income ratio suggests liquidity issues, as cash flows do not cover net losses effectively. There is some improvement from previous years, but overall cash flow generation is weak and inconsistent, indicating potential liquidity challenges.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	3.45B	3.58B	3.83B	4.79B	5.56B	7.60B
Gross Profit	1.22B	590.00M	1.59B	2.54B	-310.00M	-470.00M
EBITDA	-330.00M	-190.00M	870.00M	-990.00M	-340.00M	20.00M
Net Income	-97.27B	-93.89B	-72.12B	-144.99B	-66.20B	-57.91B
Balance Sheet
Total Assets	0.00	364.25B	365.54B	367.68B	475.57B	478.26B
Cash, Cash Equivalents and Short-Term Investments	5.58B	4.39B	3.86B	3.89B	8.69B	8.26B
Total Debt	0.00	472.16B	472.31B	472.61B	455.72B	455.76B
Total Liabilities	914.96B	1.28T	1.19T	1.12T	1.08T	1.01T
Stockholders Equity	-914.96B	-914.90B	-821.30B	-748.91B	-605.73B	-539.06B
Cash Flow
Free Cash Flow	0.00	10.00M	-390.00M	-640.00M	840.00M	3.19B
Operating Cash Flow	0.00	10.00M	-390.00M	-640.00M	1.19B	3.28B
Investing Cash Flow	0.00	-30.00M	650.00M	80.00M	-2.98B	-60.00M
Financing Cash Flow	0.00	-90.00M	-380.00M	-220.00M	-510.00M	-550.00M

Reliance Communications Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.07
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RCOM, the sentiment is Negative. The current price of 1.07 is above the 20-day moving average (MA) of 1.05, below the 50-day MA of 1.07, and below the 200-day MA of 1.39, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 25.75 is Positive, neither overbought nor oversold. The STOCH value of 9.23 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RCOM.

Reliance Communications Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SHRADHA	63 Neutral	₹3.13B	11.33	―	1.09%	10.83%	-3.84%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PVSL	47 Neutral	₹6.20B	-29.19	―	0.42%	-0.11%	-159.33%
RCOM	41 Neutral	₹2.57B	-0.02	―	―	-7.28%	-16.45%
GTL	40 Underperform	₹1.12B	-7.31	―	―	-4.15%	-133.58%

Reliance Communications Limited Corporate Events

Reliance Communications Closes Trading Window Ahead of December-Quarter Results

Reliance Communications Limited has announced that its trading window for dealing in the company’s securities will be closed for directors, designated persons, their immediate relatives and other connected persons from 1 January 2026 and will reopen 48 hours after the declaration of its financial results for the quarter ended 31 December 2025, in line with SEBI’s Prohibition of Insider Trading Regulations and the company’s internal code of conduct. The move reinforces regulatory compliance on handling unpublished price-sensitive information at a time when the company remains under insolvency resolution, signalling continued adherence to capital-market governance standards despite its ongoing restructuring process.

Reliance Communications Reschedules Creditors Meeting Amid Insolvency Proceedings

Reliance Communications Limited announced the rescheduling of its 68th Committee of Creditors meeting from December 16, 2025, to December 19, 2025. This change is part of the ongoing corporate insolvency resolution process, reflecting the company’s efforts to manage its financial restructuring under the oversight of the appointed Resolution Professional.

Reliance Communications Schedules 68th Creditors Meeting Amid Insolvency Proceedings

Reliance Communications Limited has announced the scheduling of its 68th Committee of Creditors meeting on December 16, 2025, as part of its ongoing corporate insolvency resolution process. This meeting is a critical step in the company’s efforts to address its financial challenges and restructure its obligations under the oversight of the appointed Resolution Professional.