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Reliance Communications Limited (IN:RCOM)
:RCOM
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Reliance Communications Limited (RCOM) AI Stock Analysis

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IN:RCOM

Reliance Communications Limited

(RCOM)

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Underperform 39 (OpenAI - 4o)
Rating:39Underperform
Price Target:
₹1.50
▲(7.14% Upside)
The overall stock score is primarily impacted by the company's poor financial performance and weak valuation metrics. The technical analysis suggests a bearish trend, further weighing down the score. The lack of earnings call data and corporate events means these factors do not influence the score.

Reliance Communications Limited (RCOM) vs. iShares MSCI India ETF (INDA)

Reliance Communications Limited Business Overview & Revenue Model

Company DescriptionReliance 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, cloud networking, data center, enterprise voice, cloud telephony, and access number services; and collaboration services, which include audio and Web conferencing, as well as voice and various value-added wholesaling services for carriers and service providers. It also provides colocation, IT infrastructure and connectivity, and managed services. The company was formerly known as Reliance Communication Ventures Limited and changed its name to Reliance Communications Limited in June 2006. Reliance Communications Limited was incorporated in 2004 and is based in Navi Mumbai, India.
How the Company Makes MoneyReliance Communications generates revenue primarily through its mobile services, which include voice calls, SMS, and data plans for individual consumers. Additionally, the company earns income from broadband services and enterprise solutions, providing connectivity and data services to businesses. Key revenue streams include subscription fees from mobile users, one-time charges for broadband installations, and recurring charges for enterprise contracts. RCOM also benefits from partnerships with various technology and infrastructure providers, enhancing its service offerings and expanding its customer base. Factors contributing to its earnings include market penetration, competitive pricing strategies, and investments in network infrastructure to improve service quality.

Reliance Communications Limited Financial Statement Overview

Summary
Reliance Communications Limited is facing significant financial challenges. The company has declining revenues, poor profitability, and high leverage. The negative equity and high debt levels pose serious risks to financial stability. While there are slight improvements in cash flow, they are insufficient to offset the broader financial difficulties.
Income Statement
20
Very Negative
The income statement metrics reveal a challenging financial situation. The company has experienced significant declines in revenue, with a 6.53% decrease from 2024 to 2025, and consistently negative net income over the years. Gross profit margins have also deteriorated. Further, EBIT and EBITDA margins are negative, reflecting high operational costs relative to revenue. This indicates substantial profitability challenges and operational inefficiencies.
Balance Sheet
15
Very Negative
The balance sheet shows considerable financial distress. The company has negative stockholders' equity, indicating that liabilities far exceed assets, and a very high debt-to-equity ratio, which is concerning. The equity ratio is negative, highlighting a lack of financial stability and significant leverage. These factors suggest a high risk of financial instability.
Cash Flow
30
Negative
Cash flow metrics show modest improvement in 2025 with a positive operating cash flow, but free cash flow remains limited. The free cash flow to net income ratio suggests liquidity issues, as cash flows do not cover net losses effectively. There is some improvement from previous years, but overall cash flow generation is weak and inconsistent, indicating potential liquidity challenges.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue3.45B3.58B3.83B4.79B5.56B7.60B
Gross Profit1.22B590.00M1.59B2.54B-310.00M-470.00M
EBITDA-330.00M-190.00M870.00M-990.00M-340.00M20.00M
Net Income-97.27B-93.89B-72.12B-144.99B-66.20B-57.91B
Balance Sheet
Total Assets0.00364.25B365.54B367.68B475.57B478.26B
Cash, Cash Equivalents and Short-Term Investments5.58B4.39B3.86B3.89B8.69B8.26B
Total Debt0.00472.16B472.31B472.61B455.72B455.76B
Total Liabilities914.96B1.28T1.19T1.12T1.08T1.01T
Stockholders Equity-914.96B-914.90B-821.30B-748.91B-605.73B-539.06B
Cash Flow
Free Cash Flow0.0010.00M-390.00M-640.00M840.00M3.19B
Operating Cash Flow0.0010.00M-390.00M-640.00M1.19B3.28B
Investing Cash Flow0.00-30.00M650.00M80.00M-2.98B-60.00M
Financing Cash Flow0.00-90.00M-380.00M-220.00M-510.00M-550.00M

Reliance Communications Limited Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price1.40
Price Trends
50DMA
1.49
Negative
100DMA
1.55
Negative
200DMA
1.61
Negative
Market Momentum
MACD
-0.01
Negative
RSI
48.47
Neutral
STOCH
53.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:RCOM, the sentiment is Neutral. The current price of 1.4 is below the 20-day moving average (MA) of 1.40, below the 50-day MA of 1.49, and below the 200-day MA of 1.61, indicating a neutral trend. The MACD of -0.01 indicates Negative momentum. The RSI at 48.47 is Neutral, neither overbought nor oversold. The STOCH value of 53.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IN:RCOM.

Reliance Communications Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
63
Neutral
₹3.56B15.000.95%-12.08%-18.45%
55
Neutral
$13.29B17.4210.03%0.93%7.13%-12.93%
50
Neutral
₹10.34B0.34%-2.46%-129.92%
48
Neutral
₹1.45B12.65%-102.59%
39
Underperform
₹3.93B-9.21%-30.01%
* Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:RCOM
Reliance Communications Limited
1.41
-0.94
-40.00%
IN:GTL
GTL Limited
9.19
-2.97
-24.42%
IN:IL&FSTRANS
IL&FS Transportation Networks Limited
2.99
-2.17
-42.05%
IN:KRONECOMM
ADC India Communications Limited
1,546.60
37.14
2.46%
IN:PVSL
Popular Vehicles and Services Limited
144.35
-30.10
-17.25%
IN:SHRADHA
Shradha Infraprojects Ltd.
45.88
-6.95
-13.16%

Reliance Communications Limited Corporate Events

Reliance Communications’ Loan Account Classified as Fraud Amid Insolvency Proceedings
Oct 8, 2025

Reliance Communications Limited has been notified by the Central Bank of India that its loan account has been classified as ‘fraud’ as of September 29, 2025. This development comes as the company is undergoing a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. The classification pertains to credit facilities from before the insolvency process, and the resolution of these loans is expected to be addressed within the company’s resolution plan or through liquidation. The company is protected from legal proceedings during this process, and any avoidance applications filed are pending decisions from the National Company Law Tribunal.

Reliance Communications Faces Loan Fraud Classification Amid Insolvency Proceedings
Oct 5, 2025

Reliance Communications Limited has disclosed that UCO Bank has classified its loan accounts as ‘fraud’. This development comes as the company is undergoing a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. The loans in question pertain to a period before the insolvency process began, and their resolution is part of the ongoing legal proceedings. The company has also initiated a review of transactions identified as avoidance transactions, with applications filed for resolution in accordance with the applicable legal framework.

Reliance Communications’ Loans Classified as Fraud by UCO Bank Amid Insolvency Proceedings
Oct 5, 2025

Reliance Communications Limited has received a letter from UCO Bank classifying its loan accounts as ‘fraud’. This development comes as the company is undergoing a corporate insolvency resolution process under the Insolvency and Bankruptcy Code, 2016. The resolution plan for the company has been approved by its creditors and is awaiting approval from the National Company Law Tribunal, Mumbai Bench. The loans in question pertain to a period before the insolvency process, and their resolution will be part of the overall resolution plan or liquidation.

Reliance Communications Issues Corrigendum for AGM Notice
Sep 24, 2025

Reliance Communications Limited has issued a corrigendum to amend the notice of its 21st Annual General Meeting scheduled for September 30, 2025. The amendment involves changing the resolution for the appointment of an Independent Director, Smt. Priyanka Agarwal, from an ordinary resolution to a special resolution, in compliance with SEBI regulations. This change aims to ensure proper adherence to regulatory requirements and has been communicated to shareholders electronically.

Reliance Communications Faces Potential Fraud Declaration by Central Bank
Sep 10, 2025

Reliance Communications Limited has received a notice from the Central Bank of India regarding a potential declaration of its account as ‘fraud’ following a forensic audit report. This development could significantly impact the company’s financial standing and its ongoing insolvency resolution process.

Reliance Communications’ Loans Classified as Fraud by Bank of Baroda
Sep 4, 2025

Reliance Communications Limited has announced that it received a letter from Bank of Baroda, which has classified the company’s loan accounts and those of its promoter and director, Anil Dhirajlal Ambani, as ‘Fraud’. This classification could have significant implications for the company’s financial standing and its ongoing insolvency resolution process, potentially impacting stakeholders and creditors involved.

Reliance Communications Announces Promoter Reclassification Request
Sep 4, 2025

Reliance Communications Limited has informed the stock exchanges about a request from Reliance Capital Limited for reclassification of its shareholding from the ‘Promoter’ category to the ‘Public’ category. This move is part of the company’s ongoing insolvency resolution process, and the resolution professional is seeking legal advice on the matter.

CBI Searches Reliance Communications Amid Allegations
Aug 24, 2025

Reliance Communications Limited has announced that the Central Bureau of Investigation conducted a search operation at its office premises in Navi Mumbai on August 23, 2025. The search was related to alleged offenses under the Indian Penal Code and the Prevention of Corruption Act. Despite the investigation, the company stated that there is no expected impact on its financials or operations, as it is already under a corporate insolvency resolution process, which provides certain protections.

Reliance Communications Loan Accounts Classified as Fraud by Bank of India
Aug 23, 2025

Reliance Communications Limited has announced that the Bank of India has classified the loan accounts of the company and its subsidiary, Reliance Telecom Limited, as ‘Fraud’. This classification also affects key individuals associated with the company, including its promoter and former directors. This development is significant as it impacts the company’s financial standing and could have implications for its ongoing insolvency resolution process.

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.Date of analysis: Oct 24, 2025