Are Reliance Communications Ltd latest results good or bad?

The latest financial results for Reliance Communications Ltd indicate a challenging operational environment. In the third quarter of FY26, the company reported net sales of ₹63.00 crores, reflecting a significant sequential decline of 27.59%. This marks the lowest revenue recorded in recent quarters and highlights the company's ongoing struggles to maintain its subscriber base in a highly competitive telecom market. Operating performance also showed distress, with operating losses before other income widening to ₹32.00 crores, resulting in a negative operating margin of 50.79%. While this represents a sequential improvement from the previous quarter, the absolute figures remain concerning. The consolidated net loss for the quarter stood at ₹2,767.00 crores, continuing a trend of substantial losses that have characterized the company's financial performance over the years. The balance sheet reveals a critical situation, with shareholder funds at a negative ₹91,490 crores, indicating that accumulated losses have completely eroded equity. This negative book value per share of ₹-330.77 raises serious questions about the company's ability to continue as a going concern. Furthermore, the minimal promoter holding of 0.77% and limited institutional participation at just 4.49% reflect a lack of investor confidence. In terms of cash flow, the company generated a modest ₹26.00 crores from operations in FY25, a reversal from the previous year's negative cash flow, but this improvement is overshadowed by the overall financial distress. The closing cash balance of ₹194 crores provides limited liquidity against substantial liabilities. Overall, Reliance Communications Ltd continues to face significant operational and financial challenges, with ongoing losses, a deteriorating balance sheet, and a competitive disadvantage in the telecom sector. The company saw an adjustment in its evaluation, reflecting the deteriorating fundamentals and lack of viable recovery prospects.