Reliance Communications Limited (RCOM) AI Stock Analysis

• Market Cap: ₹2.96B
• Dividend Yield: N/A
• Average Volume (3M): 597.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.51
• Revenue Growth: -7.28%
• EPS Growth: -16.45%
• Country: IN
• Employees: 464
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -9.84
• 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: ₹1.50 ▲(40.19% Upside)

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

Cash Flow Improvement

Improved operating cash flow suggests better liquidity management, which can support short-term operational needs and reduce financial strain.

Network Infrastructure Investments

Investing in infrastructure can enhance service quality and competitive positioning, potentially leading to increased customer satisfaction and retention.

Enterprise Solutions Revenue

Enterprise solutions offer a stable revenue stream, leveraging business demand for connectivity, which can buffer against consumer market volatility.

Negative Factors

High Leverage

High leverage increases financial risk, limiting the company's ability to invest in growth opportunities and making it vulnerable to economic downturns.

Declining Revenue

Declining revenue indicates weakening market position and demand, which can hinder long-term growth and profitability prospects.

Negative Profitability

Persistent negative profitability reflects operational inefficiencies and challenges in cost management, threatening long-term business viability.

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	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 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: Negative
• RSI: Neutral
• STOCH: Neutral

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 below the 20-day moving average (MA) of 1.12, below the 50-day MA of 1.20, and below the 200-day MA of 1.46, indicating a bearish trend. The MACD of -0.04 indicates Negative momentum. The RSI at 35.28 is Neutral, neither overbought nor oversold. The STOCH value of 21.43 is Neutral, 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	₹3.00B	10.47	―	1.09%	10.83%	-3.84%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
PVSL	45 Neutral	₹7.92B	-26.29	―	0.42%	-0.11%	-159.33%
RCOM	41 Neutral	₹2.96B	-0.03	―	―	-7.28%	-16.45%
GTL	40 Underperform	₹1.22B	-2.20	―	―	-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.

Reliance Communications Faces Asset Attachment Amid Insolvency Proceedings

Reliance Communications Limited has announced that it received a provisional attachment order from the Directorate of Enforcement concerning certain assets of the company and its subsidiary, Reliance Realty Limited. This development is part of ongoing legal and financial challenges faced by the company, which is under corporate insolvency resolution. The company is seeking legal advice on how to proceed, highlighting the potential impact on its operations and stakeholders.

Reliance Communications Schedules 66th Creditors Meeting Amid Insolvency Proceedings

Reliance Communications Limited has announced the scheduling of its 66th Committee of Creditors meeting on October 27, 2025, as part of its ongoing corporate insolvency resolution process. This meeting is crucial for stakeholders as it continues to shape the future of the company under the oversight of the Resolution Professional appointed by the National Company Law Tribunal.

Reliance Communications’ Loan Account Classified as Fraud Amid Insolvency Proceedings

Reliance Communications Limited has been informed by the Bank of Maharashtra that its loan account has been classified as ‘fraud’. This development comes as the company is undergoing a corporate insolvency resolution process. The classification pertains to credit facilities prior to the insolvency process, and the resolution of these issues is expected to be addressed as part of the ongoing resolution plan. The company is protected from legal proceedings during this process, and any avoidance transactions are under review and subject to the decision of the National Company Law Tribunal.