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Reliance Communications Limited
(RCOM)
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Rating:44Neutral
Price Target:
₹0.80
▼(-25.70% Downside)
Action:Upgraded
Date:06/01/26
The score is driven primarily by severely weak financial performance—persistent losses, multi-year revenue contraction, negative equity, and high debt—indicating elevated solvency and turnaround risk. Technical indicators add a modest negative tilt with price trading below key moving averages and a negative MACD. Valuation provides limited offset because the negative P/E reflects ongoing losses and no dividend support is indicated.
Positive Factors
Telecom infrastructure ownership
Ownership of submarine cable, fiber and other telecom infrastructure is a durable strategic asset that supports recurring wholesale and carrier revenues. These assets create high barriers to entry and potential monetization avenues (capacity sales, IRUs), supporting long-term cash generation independent of retail subscriber trends.
Negative Factors
Severely distressed balance sheet
Persistently negative equity means liabilities exceed assets, signaling structural solvency pressure. Very high and sticky debt levels limit financial flexibility, restrict access to capital markets, and raise the need for restructuring or asset sales. This undermines long-term investment capacity and heightens default risk.
Read all positive and negative factors
Positive Factors
Negative Factors
Telecom infrastructure ownership
Ownership of submarine cable, fiber and other telecom infrastructure is a durable strategic asset that supports recurring wholesale and carrier revenues. These assets create high barriers to entry and potential monetization avenues (capacity sales, IRUs), supporting long-term cash generation independent of retail subscriber trends.
Read all positive factors
Reliance Communications Limited (RCOM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.30B
Dividend YieldN/A
Average Volume (3M)597.59K
Price to Earnings (P/E)―
Beta (1Y)0.59
Revenue Growth-12.53%
EPS Growth-18.77%
CountryIN
Employees464
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-40.54
Shares Outstanding2,765,533,000
10 Day Avg. Volume625,951
30 Day Avg. Volume597,592
Financial Highlights & Ratios
PEG Ratio>-0.01
Price to Book (P/B)>-0.01
Price to Sales (P/S)0.66
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Reliance Communications Limited Business Overview & Revenue Model
Company Description
Reliance Communications Limited delivers a comprehensive suite of voice, data, video, and IT infrastructure solutions to businesses, over-the-top content providers, and network operators, both within India and worldwide. The company's extensive se...
How the Company Makes Money
RCOM’s revenue model has historically been based on earning service and connectivity revenues from telecom subscribers and enterprise customers. Key revenue streams included: (1) Consumer mobility services: recurring revenue from prepaid and postp...
Reliance Communications Limited Financial Statement Overview
Summary
Income Statement
7
Very Negative
Balance Sheet
3
Very Negative
Cash Flow
9
Very Negative
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 3.14B | 3.58B | 3.83B | 4.79B | 5.56B |
| Gross Profit | 340.00M | 590.00M | 1.59B | 2.54B | -310.00M |
| EBITDA | -3.70B | -190.00M | 870.00M | -990.00M | -340.00M |
| Net Income | -111.25B | -93.89B | -72.12B | -144.99B | -66.20B |
Balance Sheet | |||||
| Total Assets | 363.38B | 364.25B | 365.54B | 367.68B | 475.57B |
| Cash, Cash Equivalents and Short-Term Investments | 4.40B | 4.39B | 3.86B | 3.89B | 8.69B |
| Total Debt | 472.12B | 472.16B | 472.31B | 472.61B | 455.72B |
| Total Liabilities | 1.39T | 1.28T | 1.19T | 1.12T | 1.08T |
| Stockholders Equity | -1.03T | -914.90B | -821.30B | -748.91B | -605.73B |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 10.00M | -390.00M | -640.00M | 840.00M |
| Operating Cash Flow | 60.00M | 10.00M | -390.00M | -640.00M | 1.19B |
| Investing Cash Flow | -210.00M | -30.00M | 650.00M | 80.00M | -2.98B |
| Financing Cash Flow | -40.00M | -90.00M | -380.00M | -220.00M | -510.00M |
Reliance Communications Limited Technical Analysis
Negative
1.07
Price Trends
0.90
Negative
0.92
Negative
1.04
Negative
Market Momentum
-0.02
Positive
36.05
Neutral
15.00
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 0.86, above the 50-day MA of 0.90, and above the 200-day MA of 1.04, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 36.05 is Neutral, neither overbought nor oversold. The STOCH value of 15.00 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
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
61 Neutral | ₹12.29T | 44.00 | ― | 1.26% | 21.96% | -20.52% | |
60 Neutral | ₹500.77B | 52.92 | ― | 1.39% | 8.12% | -33.60% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
49 Neutral | ₹78.08B | 210.26 | ― | ― | -7.19% | ― | |
47 Neutral | ₹1.41T | 5.78 | ― | ― | 2.99% | ― | |
44 Neutral | ₹2.30B | -0.02 | ― | ― | -12.53% | -18.77% | |
43 Neutral | ₹17.04B | -0.55 | ― | ― | 17.98% | 6.63% |
* General Sector Average
IN:RCOM
Reliance Communications Limited
0.85
-0.60
-41.38%
IN:BHARTIARTL
Bharti Airtel Limited
1,951.00
59.75
3.16%
IN:IDEA
Vodafone Idea Ltd
12.87
6.03
88.16%
IN:MTNL
Mahanagar Telephone Nigam Limited
28.05
-17.33
-38.19%
IN:TATACOMM
Tata Communications Limited
1,769.80
113.67
6.86%
IN:TTML
Tata Teleservices (Maharashtra) Limited
40.23
-18.84
-31.89%
Reliance Communications Limited Corporate Events
RCOM says CBI search at director’s residence will not hit operations
May 10, 2026
Reliance Communications has disclosed that India’s Central Bureau of Investigation conducted a search and seizure operation on May 9, 2026, at the residence of non-executive, non-independent director Grace Thomas, a former director of wholly...
PNB Flags Reliance Telecom Loan as Fraud Amid Ongoing Insolvency Process
May 9, 2026
Reliance Communications has disclosed that its subsidiary Reliance Telecom Limited has had its loan account classified as fraud by Punjab National Bank, which also designated RCOM director Grace Thomas as fraud in her former capacity as a director...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.