Reliance Infrastructure Limited (RELINFRA) AI Stock Analysis

• Market Cap: ₹31.90B
• Dividend Yield: N/A
• Average Volume (3M): 125.05K
• Price to Earnings (P/E): 152.4
• Beta (1Y): 1.87
• Revenue Growth: -10.55%
• EPS Growth: -5.08%
• Country: IN
• Employees: 4,604
• Sector: Utilities
• Sector Strength: 65
• Industry: Regulated Electric
• EPS (TTM): 0.27
• Shares Outstanding: 408,631,200
• 10 Day Avg. Volume: 110,070
• 30 Day Avg. Volume: 125,054
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.44
• P/FCF Ratio: 4.46
• 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: 60 Neutral
• Price Target: ₹82.00 ▼(-50.24% Downside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score is supported by strong recent financial performance (profitability recovery and solid margins) and an extremely low P/E valuation, but is materially weighed down by very weak technicals (price below major moving averages and bearish momentum indicators).

Positive Factors

Profitability recovery and high margins

The company's material turnaround to profitability and robust EBIT margin indicate durable improvements in core project economics and execution. High operating margins provide structural capacity to absorb cost shocks, support reinvestment in projects, and strengthen long-term earnings power if sustained across contract cycles.

Improved leverage and strong ROE

Lower leverage coupled with a high ROE signals more efficient capital deployment and greater financial flexibility. A reduced debt burden improves resilience to interest rate cycles and supports bidding on new projects while the elevated ROE reflects the firm's ability to generate attractive returns on shareholder capital over multiple reporting periods.

Diversified infrastructure business model

A diversified mix of EPC contracts and operating infrastructure assets spreads revenue sources across construction and recurring utility-like income. This structural diversification can smooth cash flows over time, enable asset monetization opportunities, and reduce reliance on any single sector or client, supporting long-term stability.

Negative Factors

Falling free cash flow and weak conversion

A near-24% fall in FCF and sub-50% conversion of net income to free cash flow reduce internal funding available for capex, debt paydown, and dividends. Persistently weak cash conversion can constrain growth, raise refinancing needs, and increase reliance on external financing, undermining durable financial flexibility.

Low equity ratio implies higher liability share

A low equity ratio means a larger portion of assets is funded by liabilities, leaving a thinner capital buffer against project shocks or revenue shortfalls. Structurally, this raises insolvency risk in adverse cycles and can increase cost of capital, reducing the company's ability to pursue large capital-intensive projects without added financing.

EPC execution and collection risk

The core EPC model carries durable execution risks—cost overruns, delays, claims, and payment timing—that can persist across contract cycles. These structural risks can erode margins, strain working capital, and create earnings volatility unless the company consistently improves project controls and counterparty credit quality over time.

Reliance Infrastructure Limited Business Overview & Revenue Model

Company Description

Reliance Infrastructure Limited, an infrastructure company, generates, transmits, and distributes electrical power to residential, industrial, commercial, and other consumers in India. It operates through three segments: Power; Engineering and Construction (E&C); and Infrastructure. The Power segment operates a 220 MW combined cycle power plant at Samalkot; 48 MW combined cycle power plant at Mormugao; and 9.39 MW wind farm at Chitradurga. This segment also distribute power in Delhi; operates a 165 MW combined cycle power plant at Kochi; transmits power through its transmission networks in the states of Himachal Pradesh; and trades in power. The E&C segment offers value added services in construction, erection, commissioning, and contracting. The Infrastructure segment engages in the development, operation, and maintenance of toll roads, metro rail transit system, and airports. The company is involved in the exploration and production of 4 coal bed methane blocks covering an area of 3,266 square kilometers in Madhya Pradesh, Andhra Pradesh, and Rajasthan; an oil and gas block covering an area of 3,619 square kilometers in Mizoram; and rehabilitation and upgradation of NH-66. In addition, it manufactures cement and defense systems; constructs smart city projects; and develops real estate and urban transport systems. Reliance Infrastructure Limited was incorporated in 1929 and is based in Mumbai, India.

How the Company Makes Money

RELINFRA primarily makes money through (1) EPC and project execution revenues and (2) income from infrastructure assets and related services, supplemented by other operating and financial income. 1) EPC / project execution revenue: A significant portion of revenue is generated by undertaking construction and infrastructure implementation work under contracts awarded by government bodies, utilities, and other customers. Under this model, the company recognizes revenue based on contract terms and project progress for activities such as civil construction, installation, and related engineering and project management services. Profitability depends on project mix, execution efficiency, input-cost management, claims/variations, and timely collections. 2) Revenue from operating infrastructure and utility-related businesses: Where RELINFRA (directly or via subsidiaries) has interests in operating businesses (for example, network/utility-style operations such as power distribution historically associated with the group), earnings can come from regulated or contracted charges tied to supplying and distributing electricity and providing associated customer and network services, including billing and collection. The specific contribution from such operations depends on the extent of ownership/operation in a given period; if not disclosed, the exact split is null. 3) Asset monetization, investments, and other income: Infrastructure companies may generate cash flows from divestments of project stakes, sale of assets, dividends from subsidiaries/JVs, and interest/finance income. The presence and materiality of these items vary by period and depend on transaction activity; detailed figures and named transactions are null if not publicly specified in the provided prompt. Key factors influencing earnings include the size and quality of the order book, the regulatory environment for any utility-like operations, access to project finance/working capital, and the company’s ability to manage execution risks (delays, cost overruns, disputes, and counterparty payment risk). Significant partnerships, if any, are null unless specifically identified in sourced disclosures.

Reliance Infrastructure Limited Financial Statement Overview

Summary

Strong improvement in profitability (net income swung from a loss in 2024 to a profit in 2025) and solid revenue growth (+10.61%) with robust EBIT margin (32.33%). Balance sheet leverage improved (debt-to-equity 0.44) but the equity ratio fell to 21.92%, and free cash flow declined (-23.97%) with only moderate conversion of earnings to cash (FCF/net income 0.47).

Income Statement

Reliance Infrastructure Limited has shown a significant recovery in its net income, turning from a loss of -16.09 billion in 2024 to a profit of 49.38 billion in 2025. Revenue growth is strong, with a 10.61% increase from 2024 to 2025. Gross profit margin stands at 37.17%, and net profit margin has improved to 20.57%. The EBIT margin is robust at 32.33%, indicating efficient operations.

Balance Sheet

The company's debt-to-equity ratio improved to 0.44 in 2025, indicating a more stable financial leverage compared to previous years. However, the equity ratio decreased to 21.92%, suggesting a higher proportion of liabilities to assets. Return on equity is strong at 34.22%, reflecting good profitability relative to shareholder investment.

Cash Flow

Free cash flow decreased by 23.97% from 2024 to 2025, despite positive operating cash flow. The operating cash flow to net income ratio is 0.74, indicating the company generates sufficient cash from operations relative to its net income. However, free cash flow to net income ratio is 0.47, suggesting room for improvement in converting net income to free cash flow.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	212.83B	235.92B	220.67B	207.42B	184.11B	167.05B
Gross Profit	66.16B	81.33B	62.65B	56.39B	58.37B	49.38B
EBITDA	57.60B	54.67B	38.33B	31.27B	32.92B	61.20B
Net Income	30.60B	49.38B	-16.09B	-32.21B	-9.99B	11.25B
Balance Sheet
Total Assets	697.09B	658.41B	591.81B	609.93B	625.33B	621.63B
Cash, Cash Equivalents and Short-Term Investments	36.38B	28.81B	32.52B	19.02B	12.36B	9.15B
Total Debt	57.37B	63.61B	98.95B	115.10B	127.18B	139.07B
Total Liabilities	426.11B	420.28B	453.23B	470.40B	461.98B	475.28B
Stockholders Equity	169.10B	144.30B	87.47B	92.94B	124.07B	108.60B
Cash Flow
Free Cash Flow	12.55B	23.35B	30.70B	21.15B	29.89B	4.54B
Operating Cash Flow	12.55B	36.57B	40.97B	34.58B	37.99B	14.36B
Investing Cash Flow	-4.40B	-17.31B	-4.48B	-13.33B	-5.02B	4.47B
Financing Cash Flow	-7.69B	-12.52B	-36.48B	-22.42B	-29.42B	-15.31B

Reliance Infrastructure Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 164.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RELINFRA, the sentiment is Negative. The current price of 164.8 is above the 20-day moving average (MA) of 93.10, above the 50-day MA of 118.83, and below the 200-day MA of 230.61, indicating a bearish trend. The MACD of -10.09 indicates Negative momentum. The RSI at 25.58 is Positive, neither overbought nor oversold. The STOCH value of 12.78 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:RELINFRA.

Reliance Infrastructure Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹726.93B	25.60	―	1.48%	-1.26%	27.83%
CESC	73 Outperform	₹206.92B	19.48	―	3.56%	10.58%	2.69%
POWERGRID	72 Outperform	₹2.77T	14.70	―	3.37%	0.80%	-3.25%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
NHPC	65 Neutral	₹771.76B	90.79	―	2.44%	15.72%	6.45%
TATAPOWER	65 Neutral	₹1.28T	39.28	―	0.59%	4.06%	8.22%
RELINFRA	60 Neutral	₹31.90B	152.35	―	―	-10.55%	-5.08%

Reliance Infrastructure Limited Corporate Events

Bombay High Court Partially Upholds Award in Favour of Reliance Infra’s Mumbai Metro JV

Reliance Infrastructure has disclosed that the Bombay High Court has delivered a judgment on a petition by the Mumbai Metropolitan Region Development Authority challenging an arbitral award in favour of Mumbai Metro One Private Limited, the company’s metro rail joint venture. The court has partially upheld the earlier award, which related to disputes between the parties over the Mumbai Metro One project.

Under the judgment, after computation and reconciliation, a portion of the funds already deposited by MMRDA with the court is to be released to MMOPL following an eight-week period. Reliance Infrastructure estimates MMOPL will receive about INR 516 crore plus interest from the date of the original award, a development that, once finalized, is expected to strengthen the metro venture’s financial position and could ease cash-flow pressures linked to the disputed project claims.

Reliance Infrastructure Opens SEBI-Mandated Window for Old Physical Share Transfers

Reliance Infrastructure Limited has informed exchanges that it has published notices in Financial Express and Navshakti about a special window for shareholders holding physical shares. The initiative follows a SEBI directive and specifically targets securities that were bought or sold before April 1, 2019.

Under the window, which remains open until February 4, 2027, eligible shareholders can complete transfer and dematerialisation of such physical share certificates. The move is aimed at facilitating regulatory compliance and accelerating the shift toward a fully dematerialised shareholding base, reducing operational frictions for both investors and the company.

Reliance Infrastructure Files Additional SEBI Regulation 30 Disclosure, Affirms Accuracy of Submitted Information

Reliance Infrastructure Limited has notified the stock exchanges that it has submitted an additional disclosure and declaration in compliance with Industry Standards under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements, following up on its earlier disclosure dated January 28, 2026. The company’s Company Secretary, Paresh Rathod, has formally certified that the information provided in Form A under Regulation 30(13) is true, correct and complete, underscoring the firm’s emphasis on regulatory compliance and transparency for its listed securities and stakeholders.

Reliance Infrastructure Board Clears Q3 FY26 Results, Disputes Auditors’ Planned Exit

Reliance Infrastructure Limited’s board approved the unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, in a meeting held on 31 January 2026, with the results to be published in compliance with Indian listing regulations. The board and its Audit Committee also reviewed the statutory auditors’ intention to resign after completing the FY 2025-26 audit, formally rejecting the reasons cited as incorrect and not legally tenable, while noting the auditors’ offer to continue through the completion of the current year’s audit and advising the company to pursue appropriate legal steps amid ongoing regulatory and investigative scrutiny referenced by the auditors.

Reliance Infrastructure Board Clears Q3 FY26 Results Amid Auditor Exit Dispute and Regulatory Overhang

Reliance Infrastructure Limited’s board has approved the company’s unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025, with the numbers accompanied by limited review reports from its statutory auditors and slated for publication in line with listing regulations. At the same meeting, the Audit Committee considered the statutory auditors’ notice of intention to resign after completion of the FY 2025‑26 audit, formally disputed the validity and legality of the reasons cited and related regulatory filings, and noted the auditors’ willingness to continue through the year-end audit despite ongoing regulatory investigations and uncertainties flagged in their review report over recovery of certain large exposures and allegations of suspected fraud, signalling potential governance and compliance overhangs for investors and other stakeholders.

ED Attaches Rs 1,575 Crore of Reliance Infrastructure’s Stakes in Power and Metro Units

Reliance Infrastructure Limited has disclosed that the Enforcement Directorate has provisionally attached its shareholdings in subsidiaries BSES Yamuna Power, BSES Rajdhani Power and Mumbai Metro One Private Limited, valuing the attachment at about Rs 1,575 crore, as part of a broader money-laundering and bank fraud investigation involving various Reliance Anil Ambani Group entities. The ED’s action forms part of cumulative group-wide attachments of roughly Rs 12,000 crore linked to alleged fraudulent diversion of public funds via complex structures involving Reliance group finance companies and Yes Bank exposures, raising fresh uncertainty over Reliance Infrastructure’s key regulated assets and adding to legal and financial risks for the company and its stakeholders, even as the company says it will pursue appropriate legal remedies to protect shareholder interests.

Reliance Infrastructure’s Secretarial Auditor Resigns Citing Personal Reasons

Reliance Infrastructure Limited has disclosed that its existing secretarial auditor, Ajay Kumar & Co., Practicing Company Secretaries, has resigned from the role citing urgent personal problems, with the firm confirming there are no other reasons behind the decision. The resignation, effective January 27, 2026, represents a change in the company’s compliance and governance support structure, and the market will watch for the appointment of a new secretarial auditor to ensure continued adherence to regulatory and disclosure requirements under SEBI’s Listing Regulations.

Reliance Infrastructure Auditor to Resign Amid SEBI Allegations and Governance Dispute

Reliance Infrastructure Limited has announced that its statutory auditor, Chaturvedi & Shah LLP, has expressed its intention to resign after completing the statutory audit for the financial year ending 31 March 2026, though it has offered to continue for the next two quarters to complete that audit. The auditor’s resignation follows a show cause notice issued by SEBI alleging irregularities including misutilisation and diversion of funds, concealment of the company’s relationship with CLE Private Limited, and suspected fraudulent transactions, as well as related investigations by various authorities. Reliance Infrastructure has strongly disputed the reasons cited for the resignation and the filing of the relevant regulatory form, calling them incorrect and not legally tenable, and has indicated it will pursue appropriate legal steps, setting up a potential confrontation between the company and its long-standing audit firm that could heighten regulatory and investor scrutiny over its governance and financial practices.

India Ratings Downgrades Reliance Infrastructure on Regulatory and Enforcement Actions

India Ratings & Research has downgraded Reliance Infrastructure Limited’s long-term bank loan rating to ‘IND C’, while affirming its short-term rating at ‘IND A4’, citing heightened risks following regulatory and investigative actions against the company. The downgrade stems from an Enforcement Directorate order placing a lien on about INR 778.6 million of the company’s bank accounts under alleged FEMA violations, provisional attachment of non-core properties worth roughly INR 6,690 million under PMLA, and a SEBI show-cause notice for alleged unfair trade practices, developments that the agency believes could constrain Reliance Infrastructure’s operational and financial flexibility; the company, which strongly disputes the rating action as unwarranted and not reflective of its improved credit fundamentals, says it is pursuing legally advised measures while the rating agency continues to monitor the evolving situation and any potential need for cash support to its guaranteed subsidiaries and new business lines.

Reliance Infrastructure Opens Special Window for Re‑lodgement of Physical Share Transfers

Reliance Infrastructure Limited has notified the stock exchanges that it has published newspaper notices in Financial Express and Navshakti regarding a special window, open until January 6, 2026, for eligible shareholders to re-lodge transfer requests of physical share certificates in line with a recent SEBI circular. This move is aimed at facilitating compliance with updated securities transfer norms and provides an additional opportunity for shareholders holding physical shares to regularize pending transfers, which may improve share transfer transparency and align the company’s shareholder records more closely with regulatory requirements.

Reliance Infrastructure Shareholders Clear FCCB Issue and Higher Borrowing Powers

Reliance Infrastructure Limited has announced that its shareholders have approved, via postal ballot and e-voting, key special resolutions enabling the company to issue Foreign Currency Convertible Bonds and other securities and to enhance its borrowing powers. The approvals, confirmed by an independent scrutinizer’s report and disclosed in compliance with SEBI’s listing regulations, give the company expanded flexibility to tap international and domestic capital markets and increase leverage, potentially supporting future funding of infrastructure projects and strengthening its financial toolkit for growth and refinancing, with full voting results made available on the company’s and the e-voting agency’s websites.