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Reliance Communications Limited
(RCOM)
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Rating:42Neutral
Price Target:
₹0.78
▼(-27.29% Downside)
Action:Reiterated
Date:09/06/26
The score is primarily dragged down by very weak financial performance—persistent losses, multi-year revenue decline, and a severely distressed balance sheet with negative equity and high debt. Technicals are also weak with price below key moving averages and negative MACD, while valuation offers little support due to ongoing losses and no dividend data.
Positive Factors
Diversified telecom service model
RCOM’s historical business model spans consumer, enterprise, broadband, wholesale and international connectivity services. This breadth offers multiple routes to recurring telecom revenue and reduces reliance on a single customer group, although the pack states that financial distress has materially affected operations.
Negative Factors
Persistent revenue and profit deterioration
Continuous revenue contraction from 7.6B to 3.14B signals sustained erosion in the core business rather than a temporary setback. Negative EBIT in every period and deeply negative net margins limit internal funding, weaken resilience, and make a durable operating recovery uncertain.
Read all positive and negative factors
Positive Factors
Negative Factors
Diversified telecom service model
RCOM’s historical business model spans consumer, enterprise, broadband, wholesale and international connectivity services. This breadth offers multiple routes to recurring telecom revenue and reduces reliance on a single customer group, although the pack states that financial distress has materially affected operations.
Read all positive factors
Reliance Communications Limited (RCOM) vs. iShares MSCI India ETF (INDA)
Market Cap
₹2.24B
Dividend Yield0.19%
Average Volume (3M)459.15K
Price to Earnings (P/E)―
Beta (1Y)0.63
Revenue Growth-11.59%
EPS Growth3.43%
CountryIN
Employees464
SectorGeneral
Sector StrengthN/A
IndustryTelecommunications Services
Share Statistics
EPS (TTM)-34.16
Shares Outstanding2,765,533,000
10 Day Avg. Volume508,693
30 Day Avg. Volume459,152
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 | 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 | -990.00M | -340.00M |
| Net Income | -93.75B | -111.25B | -93.89B | -72.12B | -144.99B | -66.20B |
Balance Sheet | ||||||
| Total Assets | 0.00 | 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 | 0.00 | 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 | 0.00 | 0.00 | 10.00M | -390.00M | -640.00M | 840.00M |
| Operating Cash Flow | 0.00 | 60.00M | 10.00M | -390.00M | -640.00M | 1.19B |
| Investing Cash Flow | 0.00 | -210.00M | -30.00M | 650.00M | 80.00M | -2.98B |
| Financing Cash Flow | 0.00 | -40.00M | -90.00M | -380.00M | -220.00M | -510.00M |
Reliance Communications Limited Technical Analysis
Negative
1.07
Price Trends
0.84
Negative
0.90
Negative
0.98
Negative
Market Momentum
-0.01
Negative
45.54
Neutral
60.00
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 0.81, above the 50-day MA of 0.84, and above the 200-day MA of 0.98, indicating a bearish trend. The MACD of -0.01 indicates Negative momentum. The RSI at 45.54 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 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 | ₹11.49T | 38.38 | ― | 1.30% | 19.63% | -18.80% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
55 Neutral | ₹1.63T | 5.23 | ― | 0.72% | 3.30% | ― | |
49 Neutral | ₹500.36B | 52.77 | ― | 1.00% | 8.12% | -33.60% | |
49 Neutral | ₹73.82B | 198.42 | ― | ― | -7.19% | ― | |
42 Neutral | ₹2.24B | -0.02 | ― | 0.19% | -11.59% | 3.43% | |
42 Neutral | ₹16.74B | -0.56 | ― | 1.09% | 68.07% | 14.04% |
* General Sector Average
IN:RCOM
Reliance Communications Limited
0.81
-0.56
-40.88%
IN:BHARTIARTL
Bharti Airtel Limited
1,842.00
-21.65
-1.16%
IN:IDEA
Vodafone Idea Ltd
15.01
7.70
105.34%
IN:MTNL
Mahanagar Telephone Nigam Limited
26.57
-18.11
-40.53%
IN:TATACOMM
Tata Communications Limited
1,755.55
222.94
14.55%
IN:TTML
Tata Teleservices (Maharashtra) Limited
37.76
-19.70
-34.28%
Reliance Communications Limited Corporate Events
Reliance Communications Files Q1 FY27 Results Under Ongoing Insolvency, Asset Valuation Gaps Flagged
Aug 22, 2026
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...
NCLT Declares RCIL Resolution Plan Non-Implementable, Seeks Fresh Creditor Review
Aug 22, 2026
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 ...
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.