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Reliance Communications Limited
(RCOM)
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Rating:44Neutral
Price Target:
₹0.78
▼(-27.48% 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
Diversified telecom and infrastructure business model
The historical mix of consumer, enterprise, wholesale and infrastructure activities provides multiple potential revenue channels and asset uses. This diversification could support restructuring or selective asset monetization, although current operating scale is not confirmed.
Negative Factors
Persistent multi-year revenue contraction
The sustained fall in revenue indicates continuing erosion of the core business rather than a single-period setback. Shrinking scale can weaken network economics, reduce customer reach and make fixed operating costs harder to absorb.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified telecom and infrastructure business model
The historical mix of consumer, enterprise, wholesale and infrastructure activities provides multiple potential revenue channels and asset uses. This diversification could support restructuring or selective asset monetization, although current operating scale is not confirmed.
Read all positive factors
Reliance Communications Limited (RCOM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.21B
Dividend YieldN/A
Average Volume (3M)597.59K
Price to Earnings (P/E)―
Beta (1Y)0.66
Revenue Growth-11.59%
EPS Growth3.43%
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 (where operations were active) has been based primarily on telecommunications service revenues and, to a lesser extent, monetization of network/infrastructure assets.
Key revenue streams:
1) Consumer mobility services (servic...
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
0.87
Negative
0.90
Negative
1.00
Negative
Market Momentum
-0.02
Negative
40.24
Neutral
24.44
Neutral
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 0.82, above the 50-day MA of 0.87, and above the 200-day MA of 1.00, indicating a bearish trend. The MACD of -0.02 indicates Negative momentum. The RSI at 40.24 is Neutral, neither overbought nor oversold. The STOCH value of 24.44 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | ₹12.12T | 40.59 | ― | 1.26% | 19.63% | -18.80% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
50 Neutral | ₹1.52T | 4.86 | ― | ― | 3.30% | ― | |
49 Neutral | ₹478.29B | 49.88 | ― | 1.39% | 8.12% | -33.60% | |
49 Neutral | ₹73.19B | 198.84 | ― | ― | -7.19% | ― | |
44 Neutral | ₹2.21B | -0.02 | ― | ― | -11.59% | 3.43% | |
43 Neutral | ₹16.89B | -0.56 | ― | ― | 68.07% | 14.04% |
* General Sector Average
IN:RCOM
Reliance Communications Limited
0.81
-1.04
-56.22%
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26.80
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IN:TTML
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-35.78%
Reliance Communications Limited Corporate Events
DoT Partially Encashes Reliance Communications’ Bank Guarantees Over Unpaid Licence Fees
Aug 19, 2026
Reliance Communications has disclosed that the Department of Telecommunications has ordered partial encashment of financial bank guarantees issued on its behalf by State Bank of India and on behalf of its subsidiary Reliance Telecom by Bank of Bar...
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.