Reliance Communications Limited (IN:RCOM)
:RCOM
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Reliance Communications Limited
(RCOM)
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Rating:40Underperform
Price Target:
₹0.72
▼(-32.52% Downside)
Action:DowngradedDate:02/26/26
The score is driven primarily by severe financial weakness (losses, negative equity, high leverage) and bearish technicals (below key moving averages with negative MACD). Valuation provides limited support because the negative P/E is not meaningful and no dividend yield is available.
Positive Factors
Operating cash flow turned positive
A shift to positive operating cash flow in 2025 signals improving core cash generation versus prior years. That durability helps fund operating needs, supports creditor negotiations and any restructuring, and reduces reliance on new external financing over the next several months.
Negative Factors
Negative shareholders' equity and high leverage
Negative equity and very high leverage are structural constraints that limit access to new capital, increase insolvency risk, and constrain investment. Over months this undermines operational flexibility and forces priority on creditor resolutions rather than growth or service restoration.
Read all positive and negative factors
Positive Factors
Negative Factors
Operating cash flow turned positive
A shift to positive operating cash flow in 2025 signals improving core cash generation versus prior years. That durability helps fund operating needs, supports creditor negotiations and any restructuring, and reduces reliance on new external financing over the next several months.
Read all positive factors
Reliance Communications Limited (RCOM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.27B
Dividend YieldN/A
Average Volume (3M)597.59K
Price to Earnings (P/E)―
Beta (1Y)0.25
Revenue Growth-7.28%
EPS Growth-16.45%
CountryIN
Employees464
SectorServices
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-10.08
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)1.13
P/FCF Ratio406.10
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 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, ...
How the Company Makes Money
RCOM has historically generated revenue primarily from providing telecommunications services and connectivity. Key revenue streams included: (1) consumer mobility services—fees from prepaid and postpaid mobile subscribers for voice, SMS, and data ...
Reliance Communications Limited Financial Statement Overview
Summary
Income Statement
20
Very Negative
Balance Sheet
15
Very Negative
Cash Flow
30
Negative
| 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
Negative
1.07
Price Trends
0.96
Negative
1.07
Negative
1.29
Negative
Market Momentum
-0.05
Positive
40.88
Neutral
17.65
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 0.87, above the 50-day MA of 0.96, and below the 200-day MA of 1.29, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 17.65 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 |
|---|---|---|---|---|---|---|---|
59 Neutral | ₹2.50B | 14.41 | ― | 1.09% | 10.83% | -3.84% | |
55 Neutral | $13.29B | 17.42 | 10.03% | 0.93% | 7.13% | -12.93% | |
49 Neutral | ₹6.57B | 313.53 | ― | 0.42% | -0.11% | -159.33% | |
44 Neutral | ₹942.21M | -12.03 | ― | ― | -4.15% | -133.58% | |
40 Underperform | ₹2.27B | -0.03 | ― | ― | -7.28% | -16.45% |
* Services Sector Average
IN:RCOM
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Reliance Communications Limited Corporate Events
Reliance Communications Shuts Trading Window Ahead of FY26 Results
Mar 30, 2026
Reliance Communications Limited has announced that its trading window for dealing in company securities will be closed for directors, designated persons, their immediate relatives, and other connected persons from April 1, 2026, and will reopen 48...
SBI Flags Reliance Telecom Loan as Fraud Amid Ongoing Insolvency Process
Mar 14, 2026
Reliance Communications Limited has disclosed that its subsidiary, Reliance Telecom Limited, has had its loan account classified as fraudulent by State Bank of India following a decision by the bank’s fraud identification committee. SBI inte...
Canara Bank Flags Reliance Communications and Subsidiary Accounts as Fraud Amid Ongoing Insolvency
Mar 6, 2026
Reliance Communications Limited has disclosed that Canara Bank has classified the accounts and borrower relationships of both the company and its subsidiary Reliance Telecom Limited as fraudulent and plans to report them to the Reserve Bank of Ind...
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.