Reliance Home Finance Ltd. (RHFL) AI Stock Analysis

• Market Cap: ₹1.31B
• Dividend Yield: N/A
• Average Volume (3M): 484.28K
• Price to Earnings (P/E): 6.3
• Beta (1Y): 0.68
• Revenue Growth: 1057.49%
• EPS Growth: N/A
• Country: IN
• Employees: 137
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Mortgages
• EPS (TTM): N/A
• Shares Outstanding: 484,565,600
• 10 Day Avg. Volume: 347,177
• 30 Day Avg. Volume: 484,283
• PEG Ratio: >-0.01
• Price to Book (P/B): -2.89
• Price to Sales (P/S): 689.16
• P/FCF Ratio: 17.06
• 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: 43 Neutral
• Price Target: ₹2.50 ▼(-13.49% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is constrained primarily by weak financial health (negative margins, negative equity/high leverage, and inconsistent cash flows). Technicals also remain bearish with the stock below key moving averages and negative MACD, despite oversold momentum readings. Valuation appears low on P/E, but it does not outweigh the fundamental risk signals.

Positive Factors

Specialized housing-finance model

A focused housing-finance franchise yields predictable interest and fee streams from mortgage products. This specialization supports scalable loan originations, repeat customer relationships, and alignment with structural housing demand, aiding durable net interest income generation.

Reported high revenue growth metric

A very large reported revenue growth figure signals prior top-line expansion and market traction in originations or fee income. Sustained revenue expansion can improve scale economics, diversify income sources, and create room to invest in risk controls and distribution over the medium term.

Ability to generate operating cash occasionally

Intermittent positive operating cash flows demonstrate the company can convert lending activity into real liquidity in favorable periods. That capability provides a foundation for servicing debt, funding operations, and potentially rebuilding cushions when underwriting and collections stabilize.

Negative Factors

Heavily leveraged balance sheet

Negative shareholders' equity and extreme leverage materially raise refinancing and solvency risk for a lending institution. High leverage constrains capital buffers, increases sensitivity to credit losses and interest costs, and can limit growth or trigger regulatory/market funding stress.

Negative gross and net margins

Persistent negative margins indicate the company is not generating sufficient spread to cover operating costs and credit provisions. Structural margin weakness undermines the core lending economics, limiting retained earnings and reinvestment capacity even if revenues grow.

Inconsistent cash generation; negative FCF episodes

Volatile operating cash flows and episodes of negative free cash flow increase reliance on external funding to run the loan book. That dependency raises refinancing risk, can elevate funding costs, and reduces resilience to credit cycles or regulatory changes affecting HFC funding.

Reliance Home Finance Ltd. Business Overview & Revenue Model

Company Description

Reliance Home Finance Limited engages in the housing finance business in India. The company offers a range of loans, such as home and affordable housing loans, loans against properties, and construction finance loans. It also provides property services. The company was incorporated in 2008 and is based in Mumbai, India. Reliance Home Finance Limited is owned by Reliance Capital Limited.

How the Company Makes Money

RHFL’s primary revenue model is that of a lending institution: it earns income by deploying borrowed and/or equity capital into loan assets and collecting interest and fees from borrowers. Key revenue streams typically include: (1) Net interest income (NII): interest earned on home loans, loans against property, and other mortgage/retail loan products, minus interest expense paid on its own funding sources (such as bank borrowings, debt securities, and other institutional funding). The spread between lending yields and funding costs is the central driver of recurring earnings for a housing finance lender. (2) Fee and other income: one-time or periodic charges associated with originating and servicing loans, such as processing/origination fees, administrative or documentation charges, and other borrower-related fees. (3) Penalty/ancillary charges: amounts collected for late payments, cheque/mandate bounces, or other contractual borrower charges that may arise during the life of a loan. (4) Treasury/other income: income that may arise from managing liquidity (for example, interest earned on short-term investments) and other non-core items; specific composition varies by period and is not available here. Profitability is also significantly affected by credit costs and asset quality—i.e., provisioning and write-offs for delinquencies or defaults—which reduce reported earnings even when interest is accrued. Significant partnerships or specific earnings-contributing arrangements: null.

Reliance Home Finance Ltd. Financial Statement Overview

Summary

Financial statements indicate very high risk: volatile revenue, negative gross and net margins, a heavily leveraged balance sheet with negative equity, and inconsistent cash generation with periods of negative free cash flow.

Income Statement

The company has experienced significant volatility in revenue and profitability, with recent periods showing drastic declines in revenue and negative gross and net profit margins. These negative margins indicate substantial operational inefficiencies and challenges in generating revenue.

Balance Sheet

The balance sheet reveals a heavily leveraged position, with a negative stockholders' equity indicating significant financial risk. The debt-to-equity ratio is extremely high, reflecting the company's reliance on debt financing. The equity ratio is negative, further highlighting financial instability.

Cash Flow

The cash flow statement shows mixed results, with periods of positive operating cash flows. However, the overall trend is concerning due to large fluctuations and negative free cash flow in some years. The company's ability to generate consistent cash flow is in question.

Breakdown	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	2.23M	6.18M	3.82B	2.87B	7.75B
Gross Profit	-9.24M	-34.93M	3.37B	-9.11B	-4.66B
EBITDA	-41.23M	-38.09M	2.32B	-79.02B	-22.79B
Net Income	241.73M	-35.49M	54.19B	-54.40B	-15.20B
Balance Sheet
Total Assets	15.82M	298.25M	348.50M	101.44B	148.98B
Cash, Cash Equivalents and Short-Term Investments	7.13M	121.52M	175.40M	26.28B	9.74B
Total Debt	402.75M	914.13M	9.50M	119.17B	121.80B
Total Liabilities	545.90M	1.07B	1.09B	156.37B	149.51B
Stockholders Equity	-530.08M	-771.81M	-738.30M	-54.92B	-529.60M
Cash Flow
Free Cash Flow	89.90M	-217.85M	41.03B	-5.98B	30.67B
Operating Cash Flow	89.90M	-217.85M	41.03B	-5.97B	30.68B
Investing Cash Flow	2.22M	6.35M	1.03B	8.48B	-15.60B
Financing Cash Flow	-91.67M	40.66M	-40.35B	-3.67B	-13.74B

Reliance Home Finance Ltd. Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.89
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RHFL, the sentiment is Neutral. The current price of 2.89 is above the 20-day moving average (MA) of 2.38, above the 50-day MA of 2.62, and below the 200-day MA of 4.01, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 61.85 is Neutral, 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 Neutral sentiment for IN:RHFL.

Reliance Home Finance Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CANFINHOME	73 Outperform	₹109.67B	11.69	―	1.37%	8.92%	12.32%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AADHARHFC	64 Neutral	₹200.06B	18.67	―	―	―	―
REPCOHOME	62 Neutral	₹22.14B	5.62	―	1.61%	8.10%	2.97%
BAJAJHFL	56 Neutral	₹680.92B	29.54	―	―	―	―
LICHSGFIN	55 Neutral	₹265.79B	5.31	―	1.87%	4.79%	13.08%
RHFL	43 Neutral	₹1.31B	6.35	―	―	1057.49%	―

Reliance Home Finance Ltd. Corporate Events

Reliance Home Finance Updates Exchanges on Seventh CoC Meeting Under CIRP

Reliance Home Finance Ltd., which is under Corporate Insolvency Resolution Process, has notified the stock exchanges that the seventh meeting of its Committee of Creditors was duly held on March 9, 2026. The meeting, conducted via video conferencing, forms part of the ongoing insolvency proceedings through which creditors and the Resolution Professional are working to determine the company’s resolution path and outcomes for stakeholders.

The disclosure, made under SEBI’s Listing Regulations, indicates continued procedural progress in the CIRP while complying with mandatory transparency requirements for listed entities. Although specific decisions from the CoC meeting were not disclosed, the update reassures investors and regulators that the insolvency process for Reliance Home Finance is active and moving forward under the supervision of the Resolution Professional.

Reliance Home Finance Updates Exchanges on Rescheduled Creditors’ Meeting Under CIRP

Reliance Home Finance Limited has notified the exchanges that its fifth Committee of Creditors meeting, held as part of its ongoing Corporate Insolvency Resolution Process, was rescheduled from 7 January 2026 to 8 January 2026 and conducted via video conferencing. The post-facto disclosure, made under SEBI listing regulations, underscores the formal progress of the insolvency proceedings and continued engagement of creditors in determining the company’s resolution path, a process closely watched by investors, lenders and other stakeholders given the firm’s financial distress and restructuring prospects.

Reliance Home Finance Reschedules Fifth CoC Meeting Amid Ongoing Insolvency Process

Reliance Home Finance Ltd., which has been under Corporate Insolvency Resolution Process since September 2025, has informed the stock exchanges that its fifth meeting of the Committee of Creditors has been rescheduled. Originally slated for the afternoon of 7 January 2026 via video conferencing, the CoC meeting will now be held on 8 January 2026 at 11:30 a.m. IST through the same virtual mode, as per an intimation filed by resolution professional Umesh Balaram Sonkar. The rescheduling is part of ongoing procedural steps in the insolvency process, on which the company has said it will continue to keep stakeholders updated.