Reliance Communications Limited (RCOM)
₹0.83 -2.35% last close, 16 Oct
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Reliance Communications' revenue was ₹74.0 Cr (-10.8% year on year, -8.6% on the previous quarter), and net profit ₹-809 Cr (a smaller loss than a year earlier); the operating margin was 27.0%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹74.0 | -10.8% | -8.6% |
| Operating profit | ₹20.0 | from loss | from loss |
| Net profit | ₹-809 | loss narrowed | loss narrowed |
| EPS (₹) | -2.95 | loss narrowed | loss narrowed |
| Operating margin | 27.0% | — | — |
RCOM exchange data
NSE end-of-day data for
It closed at a price band (circuit) on 7 sessions in about the last 20.
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📢 Recent Corporate Announcements
The Department of Telecommunications (DoT) has terminated with immediate effect all spectrum assigned to Reliance Communications Limited (RCOM) and its subsidiary Reliance Telecom Limited (RTL) pursuant to auctions held in 2010, 2013, 2014, 2015, and 2016. The termination follows alleged non-compliance with rollout obligations, defaults in deferred spectrum installments, spectrum usage charges, and liquidated damages. This directly threatens RCOM's ongoing Corporate Insolvency Resolution Process (CIRP), as its resolution plan before the NCLT relied on monetizing the right to use spectrum. RCOM has a heavily distressed balance sheet with negative net worth of ₹-78,892 Cr and total debt of ₹39,934 Cr.
- DoT terminated spectrum assigned across 5 auction years: 2010, 2013, 2014, 2015, and 2016
- Termination notice issued on October 5, 2026, pursuant to Supreme Court judgment dated February 13, 2026
- Spectrum rights stand reverted to the Central Government, and RCOM/RTL must cease wireless operations on these bands
- Company cites direct risk to the CIRP resolution plan pending approval before NCLT Mumbai Bench
Reliance Communications disclosed its quarterly default position as of September 30, 2026, under SEBI circular requirements. Total financial indebtedness stands at ₹41,309 crore, with ₹27,673 crore in bank and financial institution facilities marked entirely in default. Additionally, unprovided interest amounts to ₹41,309 crore on bank borrowings and ₹3,974 crore on NCDs. The company continues to undergo the Corporate Insolvency Resolution Process (CIRP) under the IBC.
- Total bank/FI loan outstanding and defaulted: ₹27,673 crore
- Total financial indebtedness of the entity: ₹41,309 crore
- Unprovided interest on bank/FI borrowings: ₹41,309 crore
- Unprovided interest on NCDs: ₹3,974 crore
- Foreign currency loans converted at March 31, 2018 exchange rate of USD 1 = ₹65.175
Reliance Communications Limited has announced the closure of its trading window starting October 1, 2026, for the quarter ended September 30, 2026. The window will remain shut for designated persons and insiders until 48 hours after the declaration of financial results. The company continues to be under the Corporate Insolvency Resolution Process (CIRP) managed by the Resolution Professional since June 28, 2019.
- Trading window closes from October 1, 2026
- Window will reopen 48 hours after financial results declaration for the quarter ended September 30, 2026
- Company remains under CIRP with powers vested in Resolution Professional since June 28, 2019
Reliance Communications Limited has announced that the 76th meeting of its Committee of Creditors (CoC) will be held on Friday, September 11, 2026. The company remains under the Corporate Insolvency Resolution Process (CIRP), with operations managed by Resolution Professional Anish Niranjan Nanavaty since June 28, 2019. Financially distressed, RCOM carries a debt burden of ₹39,934 Cr against a negative net worth of ₹-78,892 Cr and reported a FY26 net loss of ₹-11,125 Cr.
- 76th meeting of the Committee of Creditors scheduled for September 11, 2026
- Company has been under CIRP management by the Resolution Professional since June 28, 2019
- Carries extreme financial stress with ₹39,934 Cr in debt and ₹-78,892 Cr net worth
- Recorded a net loss of ₹809.0 Cr on revenue of ₹74.0 Cr in the June 2026 quarter
The Supreme Court of India dismissed review petitions filed by Reliance Communications (RCOM) and its subsidiary Reliance Telecom Ltd (RTL) regarding its judgment dated February 13, 2026. The dismissal directly affects RCOM's insolvency resolution plan, which relied on selling the right to use spectrum as a key asset. The resolution plan currently remains sub-judice before the NCLT Mumbai Bench while the company examines further financial implications. RCOM operates under insolvency with negative net worth of ₹78,892 Cr and debt of ₹39,934 Cr.
- Supreme Court order dated July 28, 2026 (uploaded September 8, 2026) dismissed review petitions under Diary Nos. 15076 of 2026 and 15984 of 2026
- Court found no error apparent in its earlier judgment dated February 13, 2026 in Civil Appeal Nos. 4570-4571 of 2021
- Ruling impacts RCOM's and subsidiary RTL's resolution plans, which specifically provide for the sale of the right to use spectrum
- Approval of resolution plan remains pending and sub-judice before the Hon'ble NCLT Mumbai Bench
Canara Bank's Review Committee, via a decision dated August 31, 2026, has classified Reliance Communications' subsidiary Reliance Telecom Limited (RTL) and its promoter (in the capacity of erstwhile Chairman and Director) as 'Wilful Defaulters' under RBI guidelines. The communication was received by RTL on September 07, 2026, stemming from pre-CIRP loan accounts. RCOM stated that both companies are currently under the Corporate Insolvency Resolution Process (CIRP) and claim protection under Section 14 and Section 32A of the Insolvency and Bankruptcy Code (IBC). The company noted that Resolution Plans approved by the Committee of Creditors are pending NCLT Mumbai approval.
- Canara Bank Review Committee classified RTL and RCOM's promoter as Wilful Defaulters on August 31, 2026
- Intimation letter dated September 04, 2026 was received by subsidiary RTL on September 07, 2026
- Promoter ceased to be Chairman and Director of RCOM effective November 15, 2019
- Affairs of RCOM remain managed by Resolution Professional Anish Niranjan Nanavaty since June 28, 2019
The PMLA Adjudicating Authority has confirmed the provisional attachment of movable and immovable properties of Reliance Communications Limited (RCOM) worth ₹581.65 crore under Section 5(1) of the Prevention of Money Laundering Act. The attachment is linked to ED investigations arising from an FIR involving Yes Bank and Reliance Home Finance transactions. The attachment will remain in force for up to 365 days or until Special Court proceedings conclude. The attached value of ₹581.65 crore exceeds the company's entire current market capitalization of ~₹227 crore and represents ~190% of its TTM revenue.
- PMLA Adjudicating Authority confirmed attachment of properties valued at ₹581.65 crore
- Order dated August 25, 2026 confirms Provisional Attachment Order No. 19/2026 dated March 11, 2026
- Attachment remains in force during investigation up to 365 days or till Special Court conclusion
- Company has an option to appeal before the Appellate Tribunal under Section 26 within 45 days
Reliance Communications reported a consolidated net loss of Rs 809 Cr on revenue of Rs 74 Cr for the quarter ended June 30, 2026. The company recognized exceptional gains including a Rs 1,630 Cr gain on settlement of liabilities linked to the RITL resolution plan and Rs 468 Cr total profit on the deconsolidation of dissolved UK and Cyprus step-down subsidiaries. Statutory auditors issued qualified conclusions, noting that unprovided interest of Rs 1,134 Cr and foreign exchange adjustments would have increased the quarterly net loss by Rs 1,099 Cr.
- Consolidated revenue stood at Rs 74 Cr with a reported net loss of Rs 809 Cr for Q1 FY27.
- Recognized Rs 1,630 Cr gain on liability settlement linked to recoveries under the RITL resolution plan.
- Unprovided interest on borrowings of Rs 1,134 Cr for the quarter was not recognized due to ongoing CIRP.
- Exceptional gain of Rs 465 Cr recognized following the dissolution of foreign subsidiary Reliance Communications (UK) Limited.
The NCLT Mumbai Bench has ruled that the resolution plan approved in December 2023 for RCOM's subsidiary, Reliance Communications Infrastructure Limited (RCIL), is non-implementable in its present form. The tribunal directed the erstwhile Resolution Professional to convene a Committee of Creditors (CoC) meeting within 30 days to decide the future course of action. RCIL had an estimated liquidation value of ₹428.51 crore, with the share of dissenting financial creditors at ₹318.67 crore. The matter is scheduled for its next NCLT hearing on September 24, 2026.
- NCLT declared the approved resolution plan for subsidiary RCIL non-implementable in its present form
- Erstwhile RP directed to convene a CoC meeting within 30 days to decide future course of action
- RCIL liquidation value estimated at ₹428.51 crore, with dissenting financial creditors' share at ₹318.67 crore
- Matter listed for next hearing before the Hon'ble NCLT on September 24, 2026
Reliance Communications Limited has announced that the 75th meeting of its Committee of Creditors (CoC), originally scheduled for Friday, August 21, 2026, has been rescheduled to Thursday, August 27, 2026. The company continues to undergo Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code, 2016. RCOM remains under severe financial distress with a negative net worth of ₹78,892 Cr and total debt of ₹39,934 Cr. Day-to-day operations and affairs continue to be managed by the Resolution Professional.
- 75th CoC meeting rescheduled from August 21, 2026, to August 27, 2026
- Company remains under CIRP with powers vested in Resolution Professional since June 28, 2019
- Company carries total debt of ₹39,934 Cr against an annual revenue base of ₹314 Cr in FY26
Reliance Communications Limited has informed the exchanges that the 75th meeting of its Committee of Creditors (CoC) is scheduled to be held on August 21, 2026. The company continues to undergo the Corporate Insolvency Resolution Process (CIRP) initiated pursuant to NCLT orders from June 2019. RCOM remains under severe financial distress with a reported debt of ₹39,934 Cr, negative net worth of ₹-78,892 Cr, and TTM losses of ₹-11,125 Cr.
- 75th meeting of the Committee of Creditors (CoC) convened for August 21, 2026
- Company has been under the Corporate Insolvency Resolution Process since June 28, 2019
- Operations continue to be managed by Resolution Professional Anish Niranjan Nanavaty
The Department of Telecommunications (DoT) has issued communications on August 18, 2026, directing banks to partially encash Financial Bank Guarantees (FBGs) totaling ~₹5.72 Cr for outstanding License Fee defaults across FY24, FY25, and FY26. This includes ₹5,55,42,271 from State Bank of India for RCOM and ₹16,25,000 from Bank of Baroda for its subsidiary Reliance Telecom Limited (RTL). RCOM, which is currently undergoing Corporate Insolvency Resolution Process (CIRP), is reviewing the legal and financial ramifications under IBC framework.
- DoT requested State Bank of India to partially encash ₹5,55,42,271 from an FBG of ₹5,73,49,933 for RCOM.
- DoT requested Bank of Baroda to partially encash ₹16,25,000 from an FBG of ₹2,00,00,000 for RTL.
- Encashment pertains to defaulted License Fee dues for FY 2023-24, FY 2024-25, and FY 2025-26.
- Total requested encashment stands at ~₹5.72 Cr, representing ~1.82% of RCOM's TTM revenue (₹314 Cr).
The Department of Telecommunications (DoT) has invoked and encashed Financial Bank Guarantees (FBGs) aggregating to approximately ₹801.91 crore issued on behalf of RCOM across four banks. The invocation stems from alleged defaults in deferred spectrum auction installment payments from auctions held in 2013, 2014, 2015, and 2016. The total invoked amount represents ~255% of RCOM's TTM revenue (₹314 crore) and ~358% of its market capitalization (₹224 crore). RCOM, which is currently undergoing Corporate Insolvency Resolution Process (CIRP), stated it is examining the legal and financial implications.
- DoT invoked and encashed ₹801.91 crore in Financial Bank Guarantees across four major lenders.
- Bank-wise breakdown includes Yes Bank (₹281.45 cr), SBI (₹249.29 cr), Canara Bank (₹157.08 cr), and PNB (₹114.09 cr).
- Invocations relate to unpaid deferred spectrum installments from the 2013, 2014, 2015, and 2016 auctions.
- Total invoked guarantee value equals ~255% of RCOM's TTM revenue of ₹314 crore.
Reliance Communications (RCOM) continues to operate under the Corporate Insolvency Resolution Process (CIRP), with its Q1 FY27 results heavily qualified by auditors. The company did not provide for interest expenses of Rs 1,134 crore for the quarter, which would have significantly widened losses if accounted for. A one-time gain of Rs 1,630 crore was recognized due to liability settlements from the RITL resolution plan. However, the company's net worth remains deeply negative at Rs -78,892 crore, and auditors highlighted non-compliance regarding the valuation of assets held for sale.
- Unprovided interest for Q1 FY27 amounts to Rs 1,134 crore, which is ~361% of TTM revenue.
- Recognized a gain of Rs 1,630 crore on settlement of liabilities following payouts under the RITL resolution plan.
- Exceptional gain of Rs 465 crore recorded from the dissolution of the UK step-down subsidiary.
- Auditors state net worth would be lower by Rs 46,160 crore if all interest and forex provisions were recognized.
- Assets Held for Sale continue to be carried at March 2018 values, violating Ind AS 105 standards.
Reliance Communications (RCOM) has scheduled its 74th Committee of Creditors (CoC) meeting for August 13, 2026. The company has been under the Corporate Insolvency Resolution Process (CIRP) since June 28, 2019, managed by a Resolution Professional. RCOM faces extreme financial distress with a total debt of ₹39,934 crore and a deeply negative net worth of ₹78,892 crore. A resolution plan from UV Stressed Assets Management is currently awaiting NCLT approval, while the company continues to report heavy TTM losses of ₹11,125 crore.
- 74th meeting of the Committee of Creditors convened for August 13, 2026
- Company has remained under CIRP for over 7 years since the June 21, 2019 NCLT order
- Total debt of ₹39,934 crore is over 127x the TTM revenue of ₹314 crore
- Net worth stands at a deficit of ₹78,892 crore as of the latest financial data
- Promoter holding remains negligible at 0.78% as of March 2026
Financial Performance
Revenue Growth by Segment
Consolidated revenue for FY25 was INR 391 Cr. India Operations contributed INR 386 Cr (98.7% of total), while Global Carrier Business contributed INR 8 Cr (2% of total). Reliance Communications Infrastructure Limited (RCIL) revenue grew 33.3% YoY to INR 12 Cr from INR 9 Cr.
Geographic Revenue Split
India Operations represent 98.7% of total revenue (INR 386 Cr), with Global Operations contributing the remaining 1.3% (INR 8 Cr).
Profitability Margins
The company recorded a Net Profit Margin of (-) 43.02% and an Operating Profit Margin of (-) 35.78% for continuing operations in FY25. Net loss after tax was INR 186 Cr.
EBITDA Margin
Consolidated EBITDA was INR 21 Cr with an EBITDA margin of 5.46%. India Operations EBITDA was INR 40 Cr, while Global Carrier Business recorded an EBITDA loss of INR 17 Cr.
Capital Expenditure
Planned capex expansion needs are mentioned as being managed through sharing agreements to lower regulatory cash outflows, though specific INR Cr values for future capex are not disclosed. Historical loan diversion of INR 1,000 Cr from BOB was intended for capital expenditure but partially diverted.
Credit Rating & Borrowing
Liquidity is rated as 'Poor' with a 'Delay in servicing of debt obligation' status. Interest Coverage Ratio is 0. Overall gearing is Not Meaningful (NM) due to negative equity of INR 91,495 Cr.
Operational Drivers
Raw Materials
Interconnect usage charges (IUC) and regulatory levies represent the primary operational costs for the telecom service business.
Capacity Expansion
The company serves nearly 2,000 Indian corporations. Planned expansion focuses on the Enterprise customer base across India and globally through products like VPN and SIP Trunking.
Raw Material Costs
Total operating expenditure stood at INR 370 Cr, representing 94.6% of revenue. Interconnect usage charges and regulatory levies are key components of these costs.
Manufacturing Efficiency
Not applicable as a service provider; however, the company has transitioned to a 'pure play B2B operator' to better utilize resources for the enterprise segment.
Strategic Growth
Growth Strategy
The company aims to grow revenue by expanding its portfolio of service offerings (VPN, SIP Trunk, IP Centrex) and focusing on the B2B Enterprise segment. It also focuses on cost management and margin expansion through sharing agreements to reduce operating costs.
Products & Services
VPN, Next-Generation Enterprise Networking, Branch Connect, IP Centrex, SIP Trunk, Mobile SIP trunk, SIP Toll-Free Service, and National/International Long Distance (NLD/ILD) voice services.
Brand Portfolio
Reliance Communications (RCOM).
New Products/Services
New enhancements in the solutions portfolio include Next-Generation Enterprise Networking and SIP Toll-Free Services aimed at increasing the Enterprise customer base.
Market Expansion
Targeting growth in the Enterprise segment across India and globally through specific sales and marketing initiatives.
Strategic Alliances
Sharing agreements entered into to lower regulatory cash outflows and future capex expansion needs.
External Factors
Industry Trends
The Indian telecom industry has 1,200 million subscribers and 900 million internet users as of March 2025. There is a strong shift toward wireless internet, which accounts for 97% of the subscriber base.
Competitive Landscape
The company shut down mobile operations due to high debt and a failed merger with Aircel, now operating as a distressed pure-play B2B operator.
Competitive Moat
The company's moat is centered on its specialized B2B enterprise strengths and established network for long-distance services, though this is currently weakened by insolvency proceedings.
Macro Economic Sensitivity
Sensitive to changes in government regulations, tax laws, and economic developments within India and globally.
Consumer Behavior
Enterprise demand is shifting toward integrated networking solutions like VPN and SIP trunking for branch connectivity.
Geopolitical Risks
Global economic developments are cited as factors affecting the company's operations and financial condition.
Regulatory & Governance
Industry Regulations
Operations are heavily regulated by interconnect usage charges, tariff determinations, and government levies which impact cash flows.
Taxation Policy Impact
The company recorded a tax credit of INR 4 Cr in FY25.
Legal Contingencies
Union Bank of India classified RCOM's loan accounts as 'Fraud' in December 2025. Investigations revealed siphoning of INR 5,525 Cr to a connected entity (Netizen) and fictitious debtors. Open charges of INR 49,111 Cr exist against assets valued at only INR 26,163 Cr. The company is currently under CIRP at the NCLT Mumbai Bench.
Risk Analysis
Key Uncertainties
The primary uncertainty is the outcome of the CIRP and the approval of the resolution plan. Fraud classification by Union Bank poses significant legal and reputational risks with potential impact on the resolution process.
Geographic Concentration Risk
98.7% of revenue is concentrated in India Operations.
Third Party Dependencies
High dependency on interconnect partners and regulatory authorities for operational viability.
Technology Obsolescence Risk
Risk of falling behind in enterprise networking technology; the company is focusing on 'Next-Generation' solutions to mitigate this.
Credit & Counterparty Risk
Receivables quality is a concern with a Debtors Turnover of 239 days, indicating high credit risk from enterprise clients.
