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Reliance Communications Limited (RCOM) AI Stock Analysis
Reliance Communications Limited
(NSE:RCOM)
The score is dominated by severely distressed fundamentals: persistent revenue decline, losses many times larger than revenue, technical insolvency with deeply negative equity, ~₹472B of unresolved debt, and virtually no operating cash generation. Valuation offers no support, with a negative P/E and no dividend. The only mildly positive factor is a recent price surge that has pushed the stock above all major moving averages, but with RSI at 85 and stochastic at 100, this move looks speculative and stretched rather than fundamentally driven. Overall, the stock carries extreme risk for equity holders.
Reliance Communications Limited (RCOM) vs. iShares MSCI India ETF (INDA)
- Market Cap
- INR 2.20B
- Dividend Yield
- ―
- Average Volume (3M)
- 562.89K
- Price to Earnings (P/E)
- -0.0
- Beta (1Y)
- 0.77
- Revenue Growth
- -11.59%
- EPS Growth
- 3.43%
- Country
- India
- Employees
- 464
- Sector
- General
- Sector Strength
- 55
- Industry
- Telecommunications Services
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 servi...
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 (service re...
Reliance Communications Limited Financial Statement Overview
Summary
Financials reflect extreme distress. Revenue has fallen ~59% since FY2021 to ₹3.14B, while net losses ballooned to ₹111.25B in FY2026 — more than 35x revenue. EBIT has been negative every year, showing the core business is not operationally viable. The balance sheet is technically insolvent, with stockholders' equity at -₹1,025.65B, debt stuck near ₹472B, and total assets (₹363B) now below total debt alone. Cash flow is negligible, with operating cash flow of just ₹60M in FY2026 and essentially zero free cash flow, leaving no capacity to service debt or fund a turnaround.
Income Statement
3Very NegativeBalance Sheet
2Very NegativeCash Flow
5Very Negative| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 3.05B | 3.14B | 3.58B | 3.83B | 4.79B | 5.56B |
| Gross Profit | 370.00M | 340.00M | 590.00M | 1.59B | 2.54B | -310.00M |
| EBITDA | -3.43B | -3.70B | -190.00M | 870.00M | -980.00M | -330.00M |
| Net Income | -93.75B | -111.25B | -93.89B | -72.12B | -144.99B | -66.20B |
Balance Sheet | ||||||
| Total Assets | 0 | 363.38B | 364.25B | 365.54B | 367.68B | 475.57B |
| Cash, Cash Equivalents and Short-Term Investments | 4.40B | 4.40B | 4.39B | 3.86B | 3.89B | 8.69B |
| Total Debt | 0 | 472.12B | 472.16B | 472.31B | 472.61B | 455.72B |
| Total Liabilities | 1.03T | 1.39T | 1.28T | 1.19T | 1.12T | 1.08T |
| Stockholders Equity | -1.03T | -1.03T | -914.90B | -821.30B | -748.91B | -605.73B |
Cash Flow | ||||||
| Free Cash Flow | 0 | 0 | 10.00M | -390.00M | -640.00M | 840.00M |
| Operating Cash Flow | 0 | 60.00M | 10.00M | -390.00M | -640.00M | 1.19B |
| Investing Cash Flow | 0 | -210.00M | -30.00M | 650.00M | 80.00M | -2.98B |
| Financing Cash Flow | 0 | -40.00M | -90.00M | -380.00M | -220.00M | -510.00M |
Reliance Communications Limited Technical Analysis
Price Trends
Market Momentum
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 0.80 is below the 20-day moving average (MA) of 0.84, below the 50-day MA of 0.86, and below the 200-day MA of 0.92, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 42.26 is Neutral, neither overbought nor oversold. The STOCH value of 47.22 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
Overall Rating
IN:BHARTIARTL67Neutral
IN:TATACOMM60Neutral
IN:IDEA51Neutral
IN:MTNL43Neutral- IN:RCOM43Neutral
IN:TTML39Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| IN:BHARTIARTL | 67Neutral | INR 12.29T | 41.51 | ― | 1.21% | 19.63% | -18.80% |
| IN:TATACOMM | 60Neutral | INR 477.80B | 45.11 | ― | 1.00% | 9.08% | -20.04% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| IN:IDEA | 51Neutral | INR 1.28T | 4.27 | ― | ― | 3.30% | ― |
| IN:MTNL | 43Neutral | INR 14.07B | -0.47 | ― | ― | 68.07% | 14.04% |
| IN:RCOM | 43Neutral | INR 2.24B | -0.02 | ― | ― | -11.59% | 3.43% |
| IN:TTML | 39Underperform | INR 67.17B | 22.84 | ― | ― | -0.85% | ― |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| IN:RCOM | Reliance Communications Limited | 0.80 | -0.47 | -37.01% | |
| IN:BHARTIARTL | Bharti Airtel Limited | 1986.40 | -100.24 | -4.80% | |
| IN:IDEA | Vodafone Idea Ltd | 12.27 | 2.85 | 30.25% | |
| IN:MTNL | Mahanagar Telephone Nigam Limited | 22.67 | -19.21 | -45.87% | |
| IN:TATACOMM | Tata Communications Limited | 1754.50 | -132.14 | -7.00% | |
| IN:TTML | Tata Teleservices (Maharashtra) Limited | 34.90 | -20.61 | -37.13% |
Reliance Communications Limited Corporate Events
NCLT Eases Compliance Hurdles for Reliance Communications During Insolvency
Reliance Communications has disclosed that the National Company Law Tribunal, Mumbai Bench, has allowed an application filed by its Resolution Professional seeking relief from technical hurdles in filing statutory forms on the Ministry of Corporate A...
DoT Terminates Reliance Communications’ Spectrum Across Multiple Auction Years
The Department of Telecommunications has terminated all telecom spectrum assigned to Reliance Communications and its wholly owned subsidiary Reliance Telecom, covering allocations won in spectrum auctions held between 2010 and 2016, after finding vio...
Reliance Communications Files Q1 FY27 Results Under Ongoing Insolvency, Asset Valuation Gaps Flagged
Reliance Communications Limited reported its unaudited standalone and consolidated financial results for the quarter ended 30 June 2026, which were approved at a management meeting chaired by resolution professional Anish Niranjan Nanavaty in line wi...
NCLT Declares RCIL Resolution Plan Non-Implementable, Seeks Fresh Creditor Review
The National Company Law Tribunal’s Mumbai Bench has ruled that the existing resolution plan for Reliance Communications Infrastructure Limited, a subsidiary of Reliance Communications, is non-implementable in its current form. The tribunal dis...
DoT Partially Encashes Reliance Communications’ Bank Guarantees Over Unpaid Licence Fees
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 Baroda...
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: Sep 16, 2026