Reliance Industrial Infrastructure Limited

Industrials — Engineering & Construction · NSE

₹728.00−₹5.40 (−0.74%)

DalalBaazaar Score

46 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: The business is earning a fairly low return on the money invested in it, but sales are shrinking. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Reliance Industrial 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 Industrial Infrastructure Limited engages in the infrastructure and support services activities in India.

IndustryEngineering & Construction

SectorIndustrials

Annual revenue₹45 Cr

How does it make money?

Turns over ₹45 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit, with ₹-22 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., ADANI PORT & SEZ LTD, SIEMENS 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?Little sign of one

Returns on capital of -1.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE14.1%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved -33% while net margin moved +6% 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-33%

Margin effect+6%

DalalBaazaar Score

46/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 12.6% a year
✗ Profit has declined at 11.0% a year
✗ Latest-year revenue growth of -31.4% is below the longer-term trend — momentum is fading
✗ Profit fell 8.9% in the latest year

Quality vs. Valuation

Company Quality

45/ 100

Average

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

Valuation

41/ 100

Expensive

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

92.6x

3Y Median

110.0x

40 monthly readings · mean 130.2x · range 78.7x–222.3x

Sector Median

30.1x

median of 3 sector peers

🟢Current valuation is approximately 16% below its 3y median of 110.0x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

⚠️Against its sector it trades 208% above the peer median of 30.1x.

vs. its own history

Fair

110.0x median over 40 months · -16%

vs. sector peers

Expensive

30.1x median of 3 peers · +208%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

—

PEG

—

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention0

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

Red Flags

4 items require attention · 2 high · 2 watch

🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Significant margin compressionFinancial
EBITDA margin has fallen 11.5 points, from -10.8% to -22.2%.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹36 Cr in the latest year.
🟡Profit is decliningFinancial
Net profit is down 29% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from -10.8% to -22.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
A premium to the sector to defend
It trades 208% above the peer median. That premium needs a reason that persists, or it closes.
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.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above -24%✓ -22.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹36 Cr
Profit that never becomes cash eventually stops being profit.
3ROCE stays above 8%✗ -1.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.
4Valuation vs its own median of 110.0x✓ 92.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

3 / 10 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ 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

1 good · 4 neutral · 6 weak

Market Cap

₹1,099 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

92.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

2.38x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹7.86

Profitable

Profitable on a per-share basis

ROE

2.5%

Weak

Weak capital efficiency

ROCE

-1.8%

Weak

Low return on total capital employed

Debt/Equity

Not available

No data

Source didn't return this field

Revenue Growth (YoY)

-31.4%

Shrinking

Sales are contracting

Profit Growth (YoY)

-8.9%

Falling

Profits are shrinking

Dividend Yield

0.48%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

-₹188 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

87.6x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

ROA

-1.3%

Weak

Assets generate little profit

Operating Margin

-35.7%

Weak

Thin margins leave little room for error

Net Margin

31.4%

Good

Strong bottom-line conversion

Current Ratio

7.40

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.15

Defensive

Steadier than the market

52W Range Position

36%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

695.0 / 723.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

62.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹68 Cr	₹58 Cr	₹49 Cr	₹45 Cr	-12.6%
EBITDA	-₹7 Cr	-₹10 Cr	-₹16 Cr	-₹10 Cr	—
EBITDA Margin	-10.8%	-16.4%	-31.8%	-22.2%	—
PAT (Net Profit)	₹18 Cr	₹13 Cr	₹12 Cr	₹12 Cr	-11.0%
EPS	₹6.39	₹8.82	₹7.93	₹8.21	+8.7%
ROE	4.1%	2.8%	2.6%	2.6%	—
ROCE	-0.7%	-1.8%	-2.8%	-1.8%	—
Free Cash Flow	₹23 Cr	₹2 Cr	-₹3 Cr	-₹36 Cr	—

🔴 Revenue has shrunk at 12.6% a year over 3 years.

🔴 EBITDA Margin has fallen from -10.8% to -22.2% over 3 years (-11.5 pts).

🔴 PAT (Net Profit) has shrunk at 11.0% a year over 3 years.

🟢 EPS has grown at 8.7% a year over 3 years.

🔴 ROE has fallen from 4.1% to 2.6% over 3 years (-1.5 pts).

🔴 ROCE has fallen from -0.7% to -1.8% over 3 years (-1.2 pts).

🔴 Free Cash Flow has turned negative, from ₹23 Cr to -₹36 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹530 Cr

Total Liabilities

₹56 Cr

Total Debt

—

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹36 Cr

Capex

—

Shareholding (proxy)

Institutional Holding

0.6%

Insider Holding

48.3%

Corporate Actions

Dividend Rate

₹3.5

Ex-Dividend Date

12 Jun 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
ADANI PORT & SEZ LTD	29.9x	14.1%
SIEMENS LTD	88.8x	10.5%

Recent News

5 mixed1 negative

RIIL Share Price Rises 11.17%: Price Action & Valuation

Univest, 15 OctPrice 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.

RIIL share price surges 9%, up for the second straight day - Can Reliance Industrial Infrastructure stock rise further?

Livemint, 07 OctPrice 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 Industrial Infra Q2FY27 Results: Net profit down 8.5% YoY

scanx.trade, 14 OctResults

🔴Potentially negativeReported deterioration, which feeds the growth and margin inputs on this page directly.

RIIL share price surges 9%, up for the second straight day - Can Reliance Industrial Infrastructure stock rise further?

TradingView, 07 OctPrice 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.

Jio Platforms IPO effect: Reliance Industries, Network18, RIIL shares surge up to 13%

Upstox, 15 OctPrice 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.

We Think That There Are Some Issues For Reliance Industrial Infrastructure (NSE:RIIL) Beyond Its Promising Earnings

Simply Wall Street, 23 AprResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Watch Items

Revenue growth is negative (-31.4%) on the latest reported period — check if this is one-off or a trend.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
1 metric couldn't be retrieved for this stock — this is more common for smaller or thinly-covered listings.

DalalBaazaar Thesis

MiddlingBusiness Quality · Financial Health · Profitability · Valuation · Risk

WeakGrowth

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. 2 high-severity red flags sit above this conclusion and should be read first.

2 of 4 tripwires tripped — Free cash flow remains positive; ROCE stays above 8% · see Key things to watch ↑