Are Reliance Infrastructure Ltd latest results good or bad?

The latest financial results for Reliance Infrastructure Ltd for the quarter ending December 2025 reveal significant operational challenges. The company reported consolidated net profit of ₹11.12 crores, reflecting a substantial decline of 99.42% compared to the previous quarter. This sharp drop indicates severe operational stress within the company. Net sales for the same quarter were ₹4,296.52 crores, which represents a 31.09% contraction from ₹6,234.91 crores in the prior quarter, highlighting persistent demand challenges. Year-on-year, net sales also fell by 14.63%, further underscoring the difficulties faced by the company in maintaining revenue levels. The operating margin, excluding other income, was reported at 10.00%, a notable decrease from 16.93% in the previous quarter. This margin compression, alongside a profit after tax margin that fell dramatically from 40.95% to 7.20%, reflects both revenue pressures and deteriorating cost structures. Additionally, the company’s average return on capital employed (ROCE) and return on equity (ROE) are at low levels of 3.14% and 4.86%, respectively, indicating ongoing value destruction and inefficient capital allocation. The debt burden remains significant, with a debt-to-EBITDA ratio of 12.53 times, suggesting constrained capacity for debt servicing. Overall, the results indicate a comprehensive deterioration in financial metrics for Reliance Infrastructure Ltd, with the company experiencing fundamental weaknesses across its operational matrix. Furthermore, there has been an adjustment in its evaluation, reflecting the challenges it faces in the current market environment.