Reliance Industrial Infrastructure Limited (RIIL) AI Stock Analysis

• Market Cap: ₹10.74B
• Dividend Yield: 0.42%
• Average Volume (3M): 2.51K
• Price to Earnings (P/E): 86.8
• Beta (1Y): 1.91
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: IN
• Employees: 66
• Sector: Industrials
• Sector Strength: 72
• Industry: Engineering & Construction
• EPS (TTM): 1.99
• Shares Outstanding: 15,100,000
• 10 Day Avg. Volume: 2,108
• 30 Day Avg. Volume: 2,512
• PEG Ratio: -10.19
• Price to Book (P/B): 2.67
• Price to Sales (P/S): 24.88
• P/FCF Ratio: -406.39
• 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: 52 Neutral
• Price Target: ₹718.00 ▼(-12.14% Downside)

The score is held up by a strong, low-risk balance sheet (zero debt), but is weighed down by weak operating signals (negative EBIT margins and recent negative operating/free cash flow), soft technical momentum (below key moving averages with negative MACD), and an expensive valuation (P/E ~102 with low yield).

Positive Factors

Zero debt / strong balance sheet

Zero reported debt and a large equity cushion provide durable financial flexibility: the company can fund capex or absorb demand shocks without refinancing risk, support long-term contracts, and pursue opportunistic investments or rollover liabilities without leverage-driven distress.

High gross and bottom-line margins

Very strong gross margins and consistently positive net margins indicate pricing power or low variable costs in core infrastructure services. Over the medium term this supports cash retention and reinvestment potential, helping sustain operations and strategic initiatives despite revenue swings.

Infrastructure business with recurring fees

A business model built on storage/terminal infrastructure, rentals and long-term service contracts creates recurring, usage-linked revenue. This structural customer stickiness and contract-backed cash flow profile supports predictability and resilience across multi-year cycles.

Negative Factors

Declining revenue trend

Multi-year revenue decline reduces scale and erodes operating leverage, making it harder to cover fixed infrastructure costs. If sustained, shrinking top-line undermines margin expansion, return on invested capital, and the company’s ability to redeploy or monetize its asset base effectively.

Weak core operating profitability

Consistently negative EBIT and recent negative EBITDA show the core operations struggle to generate operating profits, implying reliance on non-operating items to reach net profit. This structural operating weakness threatens sustainable earnings and long-term value creation.

Inconsistent and negative cash generation

Volatile and recently negative operating and free cash flows impair the company’s ability to fund maintenance capex, service stakeholders, or reinvest organically. Poor cash conversion raises earnings quality concerns and limits strategic flexibility over the medium term.

Reliance Industrial Infrastructure Limited Business Overview & Revenue Model

Company Description

Reliance Industrial Infrastructure Limited engages in setting up/operating industrial infrastructure in India. The company is involved in the transportation of petroleum products and raw water through its pipelines; hire of construction machinery; and provision of other infrastructure support services, as well as leasing and providing services connected with computer software and data processing. It primarily operates in Mumbai and the Rasayani regions of Maharashtra, as well as Surat and Jamnagar belts of Gujarat. The company was formerly known as CPPL Limited and changed its name to Reliance Industrial Infrastructure Limited in March 1994. Reliance Industrial Infrastructure Limited was incorporated in 1988 and is based in Mumbai, India.

How the Company Makes Money

Reliance Industrial Infrastructure Limited Financial Statement Overview

Summary

Balance sheet strength (zero debt and high equity cushion) is a major positive, but it is offset by mixed operating performance (negative EBIT margins across years, negative EBITDA in FY2024–FY2025), declining revenue (FY2023–FY2025), and recently weak cash conversion (FY2025 operating and free cash flow negative).

Income Statement

Profitability at the bottom line is consistently positive (net profit margin ~13%–26% across years, including ~24% in FY2025), supported by very strong gross margin in FY2025 (~91%). However, the operating picture is mixed: EBIT margins are negative in every year shown, and EBITDA is negative in FY2024 and FY2025, indicating weak core operating performance and/or material non-cash/other operating charges. Growth is also a headwind, with revenue declining for multiple years (FY2023–FY2025), limiting operating leverage and earnings quality confidence.

Balance Sheet

Balance sheet strength is the key positive: the company reports zero debt in all periods, resulting in no financial leverage risk and solid financial flexibility. Equity is large relative to assets (stockholders’ equity ~4.6B vs. total assets ~5.4B in FY2025), providing a meaningful cushion. The main drawback is modest value creation on that capital base, with return on equity consistently low (roughly ~2%–4%), suggesting the asset/equity base is not being used very efficiently.

Cash Flow

Cash generation is volatile and recently weak: operating cash flow turned negative in FY2025 (-30.3M) after being small but positive in FY2024 (~20.3M), and it was also negative in FY2021. Free cash flow mirrors this pattern (negative in FY2025). While there are years with strong cash generation (notably FY2023 at ~228.2M), the inconsistency—especially negative operating cash flow alongside positive net income—raises questions on earnings cash conversion and working-capital timing.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	495.45M	494.90M	580.86M	680.48M	651.88M	543.14M
Gross Profit	438.89M	448.60M	190.41M	272.35M	254.67M	208.31M
EBITDA	-112.78M	-119.00M	-61.50M	28.36M	42.68M	53.15M
Net Income	121.62M	119.70M	133.18M	175.69M	83.52M	96.49M
Balance Sheet
Total Assets	0.00	5.37B	5.34B	4.76B	4.70B	4.49B
Cash, Cash Equivalents and Short-Term Investments	2.20B	2.20B	2.12B	1.96B	1.16B	426.97M
Total Debt	0.00	0.00	0.00	0.00	0.00	0.00
Total Liabilities	-4.62B	754.00M	622.96M	453.24M	354.92M	366.51M
Stockholders Equity	4.62B	4.62B	4.71B	4.31B	4.35B	4.12B
Cash Flow
Free Cash Flow	0.00	-30.30M	20.27M	228.17M	58.06M	-34.96M
Operating Cash Flow	0.00	-30.30M	20.27M	228.17M	58.06M	-34.96M
Investing Cash Flow	0.00	87.00M	32.50M	-186.12M	-8.24M	65.94M
Financing Cash Flow	0.00	-53.40M	-53.69M	-46.17M	-46.05M	-46.00M

Reliance Industrial Infrastructure Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
INDOTECH	68 Neutral	₹14.13B	15.71	―	―	34.48%	40.61%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
AGARIND	63 Neutral	₹10.92B	13.12	―	0.45%	-4.09%	-32.35%
SALZERELEC	61 Neutral	₹9.99B	17.93	―	0.36%	21.51%	-17.75%
HIRECT	58 Neutral	₹21.52B	45.26	―	0.13%	35.05%	99.65%
RIIL	52 Neutral	₹10.74B	86.80	―	0.42%	―	―
GUJAPOLLO	47 Neutral	₹4.72B	-156.99	―	0.48%	4.69%	-124.17%

Reliance Industrial Infrastructure Limited Corporate Events

Reliance Industrial Infrastructure Clears Unaudited Q3 FY26 Results After Audit Review

Reliance Industrial Infrastructure Limited announced that its Board of Directors has approved the unaudited consolidated and standalone financial results for the quarter and nine months ended 31 December 2025, following a review and recommendation by the Audit Committee. The results, prepared under Indian Accounting Standard 34 for interim financial reporting, have undergone a limited review by independent auditors in line with Securities and Exchange Board of India listing regulations, underscoring the company’s ongoing compliance and financial reporting transparency for investors and other market participants.

Reliance Industrial Infrastructure Posts Higher Q3 Profit on Stable Revenue

Reliance Industrial Infrastructure Limited reported largely stable consolidated financial performance for the quarter ended 31 December 2025, with total income at ₹1,848 lakh, broadly unchanged year-on-year from ₹1,860 lakh. Net profit for the quarter rose to ₹301 lakh from ₹274 lakh a year earlier, reflecting a 9.9% year-on-year increase, supported by improved EBITDA and profit before tax despite marginal quarter-on-quarter softness. For the nine months of FY 2025-26, total income was slightly lower at ₹5,489 lakh versus ₹5,539 lakh in the prior-year period, but net profit increased to ₹917 lakh from ₹877 lakh, indicating modest profitability growth amid flat revenues, with earnings per share also improving over both the quarter and nine-month periods.