Reliance Communications Limited (RCOM) AI Stock Analysis

• Market Cap: ₹4.95B
• Dividend Yield: N/A
• Average Volume (3M): 708.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.68
• Revenue Growth: -9.21%
• EPS Growth: -30.28%
• Country: IN
• Employees: 464
• Sector: Services
• Sector Strength: N/A
• Industry: Telecommunications Services
• EPS (TTM): -9.33
• Shares Outstanding: 2,765,533,000
• 10 Day Avg. Volume: 1,973,381
• 30 Day Avg. Volume: 708,286
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: ₹1.50
• Price Target Upside: -16.20% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 43 Neutral
• Price Target: ₹1.50 ▼(-16.20% Downside)

The overall stock score is primarily impacted by the company's poor financial performance, characterized by declining revenues, negative equity, and high leverage. Technical analysis shows mixed signals with overbought conditions and some bullish momentum. Valuation metrics are unattractive due to ongoing losses and lack of dividend yield. These factors collectively suggest a high-risk investment with significant financial instability.

Reliance Communications Limited Business Overview & Revenue Model

Company Description

Reliance Communications Limited (RCOM) is an Indian telecommunications company that was part of the Reliance Group. It provided a range of telecom services including mobile and fixed line telephony, broadband, and data services. RCOM operated primarily in the telecommunications sector, catering to both retail and enterprise customers in India.

How the Company Makes Money

Reliance Communications Limited generated revenue through various telecommunications services. Key revenue streams included mobile network services, where it offered voice and data plans to individual and business customers. The company also earned from fixed line services, providing broadband internet and enterprise solutions. Additional revenues were derived from interconnection charges, international roaming, and the provision of telecom infrastructure services. Partnerships with other telecom companies and service providers played a role in its earnings through strategic alliances and network sharing agreements.

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. With negative equity and high debt levels, there are serious risks to financial stability. Slight improvements in cash flow 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	Mar 2025	Mar 2023	Mar 2024	Mar 2022	Mar 2020
Income Statement
Total Revenue	3.58B	4.79B	3.83B	5.56B	16.85B
Gross Profit	590.00M	2.54B	1.59B	1.90B	5.83B
EBITDA	-190.00M	-990.00M	870.00M	-340.00M	-103.81B
Net Income	-93.89B	-2.77B	-72.12B	-2.31B	-108.07B
Balance Sheet
Total Assets	364.25B	367.68B	365.54B	475.57B	480.00B
Cash, Cash Equivalents and Short-Term Investments	4.39B	5.20B	3.86B	8.69B	5.54B
Total Debt	472.16B	472.61B	472.31B	455.72B	455.84B
Total Liabilities	1.28T	1.12T	1.19T	1.08T	958.40B
Stockholders Equity	-914.90B	-748.91B	-821.30B	-605.73B	-481.56B
Cash Flow
Free Cash Flow	10.00M	-640.00M	-390.00M	840.00M	80.00M
Operating Cash Flow	10.00M	-640.00M	-390.00M	1.19B	190.00M
Investing Cash Flow	-30.00M	80.00M	650.00M	-2.98B	50.00M
Financing Cash Flow	-90.00M	-220.00M	-380.00M	-510.00M	-540.00M

Reliance Communications Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.79
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RCOM, the sentiment is Positive. The current price of 1.79 is above the 20-day moving average (MA) of 1.48, above the 50-day MA of 1.60, and above the 200-day MA of 1.76, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 81.86 is Negative, neither overbought nor oversold. The STOCH value of 100.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:RCOM.

Reliance Communications Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	66 Neutral	€4.07B	17.15	-2.44%	3.86%	1.88%	-16.39%
SHRADHA	61 Neutral	₹3.13B	18.16		0.81%	-12.08%	-18.44%
GTL	50 Neutral	₹1.43B	1.09		―	12.65%	-102.61%
RCOM	43 Neutral	₹4.95B	―		―	-9.21%	-30.28%
PVSL	43 Neutral	₹8.29B	33.91		0.43%	-2.46%	-129.95%

Reliance Communications Limited Corporate Events

Reliance Communications Discloses Financial Indebtedness Amid Insolvency Proceedings

Reliance Communications Limited has disclosed its financial status in compliance with a SEBI circular, revealing a total financial indebtedness of Rs 40,413 crore, with defaults amounting to Rs 28,826 crore. The company is under corporate insolvency resolution, and its financial challenges highlight significant implications for stakeholders, as all outstanding amounts are considered in default.