Reliance Infrastructure Limited

Utilities — Utilities - Independent Power Producers · NSE

₹53.62−₹1.09 (−1.99%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Moderate

Driven by short-term liabilities exceed short-term assets, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Short-term liquidity is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:03 pm

Understanding the Business

Company site ↗

The 60-second version of Reliance Infrastructure Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Reliance Infrastructure Limited, an infrastructure company, generates, transmits, and distributes electrical power to residential, industrial, commercial, and other consumers in India.

IndustryUtilities - Independent Power Producers

SectorUtilities

Employees4,937

Annual revenue₹20,127 Cr

How does it make money?

Turns over ₹20,127 Cr a year. Of every ₹100 of sales, about ₹14 reaches shareholders as profit, with ₹32 left at the operating level before interest, tax and depreciation. Each of its 4,937 employees supports ₹4.08 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹4.08 Cr

Who are its competitors?

The closest listed comparisons in its industry are NTPC LTD, POWER GRID CORP. LTD., TATA POWER CO LTD, ADANI POWER LTD. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.1% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.8%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved -2% while net margin moved -192% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect-2%

Margin effect-192%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 0.7% a year

Quality vs. Valuation

Company Quality

60/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

80/ 100

Cheap

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

0.7x

1.3Y Median

0.8x

16 monthly readings · mean 1.0x · range 0.5x–2.2x

Sector Median

20.6x

median of 4 sector peers

🟡Currently trading close to its 1.3y median of 0.8x — the market is paying about what it usually pays for this company.

🟢Against its sector it trades 97% below the peer median of 20.6x.

vs. its own history

Fair

0.8x median over 16 months · -7%

vs. sector peers

Cheap

20.6x median of 4 peers · -97%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

0.8x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from 18.3% to 31.7% over 3 years.
Debt is being paid down
Total debt is down 57% over 3 years.
Return on equity is rising
ROE has improved from -34.7% to 16.2%.
Return on capital is rising
ROCE has improved from -1.2% to 15.1%.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 1 high · 2 watch

🔴Inventory building faster than salesFinancial
Inventory up 89% against revenue up -2% — stock may not be moving.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 6.2x to 3.7x.
🟡Short-term liquidity is tightFinancial
Current ratio of 0.21 — near-term obligations exceed near-term assets.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 18.3% to 31.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 57% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 97% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹857 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 30%✓ 31.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✓ 3.7x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹857 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.1%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

9 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✗ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✓ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

8 good · 3 neutral · 0 weak

Market Cap

₹2,189 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

0.7x

Cheap

Cheap against the generic band

P/B Ratio

0.12x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹77.05

Profitable

Profitable on a per-share basis

ROE

16.2%

Strong

Strong capital efficiency

ROCE

15.1%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

7.4%

Modest

Modest growth

Profit Growth (YoY)

328.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹857 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

-1.2%

Weak

Thin margins leave little room for error

Net Margin

15.4%

Good

Strong bottom-line conversion

Current Ratio

0.21

Tight

Tight short-term liquidity

Beta (vs Nifty)

0.87

Market-like

Moves roughly in line with the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

50.6 / 57.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

68.1

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹20,563 Cr	₹21,703 Cr	₹23,277 Cr	₹20,127 Cr	-0.7%
EBITDA	₹3,769 Cr	₹3,196 Cr	₹10,400 Cr	₹6,379 Cr	+19.2%
EBITDA Margin	18.3%	14.7%	44.7%	31.7%	—
PAT (Net Profit)	-₹3,221 Cr	-₹1,609 Cr	₹4,938 Cr	₹2,900 Cr	—
EPS	₹-112.98	₹-42.66	₹120.68	₹71.41	—
ROE	-34.7%	-18.4%	34.2%	16.2%	—
ROCE	-1.2%	6.1%	29.6%	15.1%	—
Total Debt	₹11,510 Cr	₹9,895 Cr	₹6,361 Cr	₹4,937 Cr	-24.6%
Free Cash Flow	₹2,115 Cr	₹3,070 Cr	₹2,192 Cr	₹857 Cr	-26.0%

🟡 Revenue has been broadly flat over 3 years (-0.7% a year).

🟢 EBITDA has grown at 19.2% a year over 3 years.

🟢 EBITDA Margin has risen from 18.3% to 31.7% over 3 years (+13.4 pts).

🟢 PAT (Net Profit) has turned positive, from -₹3,221 Cr to ₹2,900 Cr.

🟢 EPS has turned positive, from ₹-112.98 to ₹71.41.

🟢 ROE has risen from -34.7% to 16.2% over 3 years (+50.9 pts).

🟢 ROCE has risen from -1.2% to 15.1% over 3 years (+16.2 pts).

🟢 Total Debt has shrunk at 24.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 26.0% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹71,160 Cr

Total Liabilities

₹42,072 Cr

Cash & Equivalents

₹1,709 Cr

Operating Cash Flow

₹2,550 Cr

Capex

-₹1,693 Cr

Shareholding (proxy)

Institutional Holding

14.3%

Insider Holding

25.4%

Corporate Actions

Ex-Dividend Date

12 Sept 2018

Peer Comparison

Company	P/E	ROE
NTPC LTD	11.0x	13.7%
POWER GRID CORP. LTD.	14.6x	15.8%
TATA POWER CO LTD	29.3x	9.8%
ADANI POWER LTD	26.5x	21.9%

Recent News

2 mixed4 general

Reliance Infrastructure Ltd. Shareholding Pattern – Promoters, FIIs & DIIs

Value Research, 28 Aug

Reliance Infrastructure Upper Circuit Today: Price, Data and Peers

Univest, 08 Oct

15% Jump In Three Sessions: Reliance Infra Share Price Gains 5% For Third Consecutive Day

NDTV Profit, 05 AugPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Reliance Infrastructure Releases FY26 Annual Report Ahead of 97th AGM on August 14, 2026

scanx.trade, 23 Jul

One MobiKwik and Reliance Infrastructure among 6 stocks from which mutual funds made complete exit in July

The Economic Times, 14 Aug

Reliance Infra shares hit 5% upper circuit, up 33% in 6 days; here's why

Business Standard, 08 JunPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Profitability · Valuation

WeakGrowth · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑