Reliance Communications Ltd Falls 13.86%: 7 Key Factors Driving the Sharp Decline

23 February 2026: Lower Circuit Amid Heavy Selling Pressure

Reliance Communications Ltd opened at Rs.1.02 but succumbed to intense selling pressure, closing at Rs.0.97, down 3.96%. The stock hit its lower circuit limit at Rs.0.96, reflecting a maximum permissible daily loss of 2.97%. Despite a traded volume of nearly 46 lakh shares, liquidity remained limited due to the stock’s micro-cap status and low market capitalisation of Rs.271 crore. The stock’s proximity to its 52-week low of Rs.0.95 triggered panic selling, with delivery volumes rising sharply, indicating forced exits by investors. This day’s decline contrasted with the Sensex’s 0.39% gain and the telecom sector’s modest 0.48% rise, highlighting company-specific concerns.

24 February 2026: New 52-Week Low and Another Lower Circuit Hit

The downward momentum intensified as Reliance Communications fell to a fresh 52-week low of Rs.0.93, down 4.12% on the day. The stock again hit the lower circuit limit, closing at Rs.0.92, marking a cumulative two-day loss of nearly 8%. Trading volumes surged to approximately 25 lakh shares, with delivery volumes on the previous day more than doubling, signalling heightened investor participation predominantly on the sell side. The stock underperformed both the telecom sector, which declined 3.16%, and the Sensex, which fell 0.78%. Technical indicators remained bearish, with the stock trading below all key moving averages, reinforcing the downtrend.

25 February 2026: Modest Recovery Amid Persistent Weakness

After two consecutive days of sharp declines, Reliance Communications posted a slight recovery, closing at Rs.0.95, up 2.15%. Despite this gain, the stock remained below all major moving averages and continued to trade near its 52-week low. The broader market showed resilience, with the Sensex gaining 0.41%. The stock’s outperformance relative to its sector by 0.38% on this day was marginal and did little to alter the prevailing bearish sentiment. Financial metrics continued to weigh on investor confidence, with the company reporting a net loss of Rs.69 crore in the December 2025 quarter and negative book value.

26 February 2026: Lower Circuit Hit Amid Divergence from Sector and Market

Reliance Communications plunged again to hit the lower circuit limit, closing at Rs.0.91, down 4.21%. This marked a fresh 52-week low and a continuation of the stock’s steep decline. The total traded volume was substantial at 36 lakh shares, yet turnover remained modest at Rs.0.32 crore, reflecting the stock’s micro-cap nature. Notably, the stock underperformed the telecom sector, which gained 0.69%, and the Sensex, which rose 0.21%. Delivery volumes declined, suggesting waning buyer conviction. The stock’s technical position remained weak, trading below all key moving averages and signalling a strong downtrend. The Mojo Score of 3.0 and Strong Sell grade underline the deteriorating fundamentals and heightened risk.

27 February 2026: Week Closes at Fresh 52-Week Low with Lower Circuit Triggered

The week ended with Reliance Communications closing at Rs.0.87, down 4.40%, marking the lowest price in 52 weeks. The stock hit the lower circuit limit during the session, reflecting a maximum daily loss of 5%. Heavy volumes of nearly 12 lakh shares were traded, but delivery volumes declined slightly, indicating speculative selling rather than long-term holding. The stock’s underperformance was stark compared to the telecom sector’s 1.11% decline and the Sensex’s 0.54% fall. Technical indicators remained firmly bearish, with the stock below all major moving averages. The company’s financial challenges, including a negative book value, contracting sales at -17.55% CAGR over five years, and a quarterly PAT loss of Rs.69 crore, continue to weigh heavily on sentiment.

Daily Price Comparison: Reliance Communications Ltd vs Sensex

Key Takeaways

Persistent Downtrend and Technical Weakness: Reliance Communications consistently traded below all major moving averages throughout the week, triggering multiple lower circuit hits and new 52-week lows. This technical deterioration signals strong bearish momentum and limited short-term support.

Heavy Selling Pressure and Panic Selling: Elevated volumes, especially on days with lower circuit hits, coupled with rising delivery volumes initially and then declining participation, indicate a mix of forced selling and speculative exits, reflecting deep investor concern.

Deteriorating Fundamentals: The company’s negative book value, contracting net sales at an annualised rate of -17.55%, stagnant operating profit, and a significant quarterly PAT loss of Rs.69 crore have contributed to the weak sentiment and Strong Sell Mojo Grade of 3.0.

Underperformance Relative to Market and Sector: The stock’s 13.86% weekly decline starkly contrasts with the Sensex’s 0.96% fall and the telecom sector’s mixed performance, underscoring company-specific challenges beyond broader market trends.

Micro-Cap Volatility and Liquidity Constraints: With a market capitalisation around Rs.250 crore, the stock’s liquidity limitations exacerbate price volatility, making it vulnerable to sharp moves on relatively modest volumes.

Conclusion

Reliance Communications Ltd’s performance over the week ending 27 February 2026 highlights a company grappling with severe financial and technical challenges. The repeated lower circuit hits, fresh 52-week lows, and sustained underperformance relative to the Sensex and telecom sector reflect a deteriorating outlook. The Strong Sell Mojo Grade and negative fundamental metrics reinforce the cautious stance investors must adopt. Without clear positive catalysts or improvements in operational performance, the stock is likely to remain under pressure in the near term. Market participants should closely monitor volume trends, price action relative to moving averages, and any corporate developments before considering exposure.

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