Stock Price Movement and Market Context
On 24 Feb 2026, Reliance Communications Ltd’s share price fell by 4.12% during the trading session, underperforming the Telecom - Services sector which declined by 3.16%. The stock has now recorded a consecutive two-day fall, resulting in a cumulative loss of 7.92% over this period. The new 52-week low of Rs.0.93 is notably below its 52-week high of Rs.1.95, indicating a near 52.3% drop from its peak price within the last year.
The stock is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, signalling sustained bearish momentum. This contrasts with the broader market where the Sensex, despite a negative opening and a fall of 474.23 points (-0.86%) to 82,578.31, remains 4.34% below its 52-week high of 86,159.02. The Sensex’s 50-day moving average remains above its 200-day moving average, suggesting a more stable medium-term trend compared to Reliance Communications Ltd.
Financial Performance and Fundamental Indicators
Reliance Communications Ltd’s financial metrics continue to reflect challenges. The company holds a Mojo Score of 3.0 with a Mojo Grade of Strong Sell, an upgrade from a previous Sell rating on 13 Jan 2025, indicating deteriorating fundamentals. The Market Cap Grade stands at 4, reflecting a relatively low market capitalisation quality.
Over the past year, the stock has delivered a negative return of 48.33%, significantly underperforming the Sensex’s positive 10.91% return. This underperformance is mirrored in the company’s financial results, with net sales declining at an annualised rate of -17.55% over the last five years and operating profit remaining stagnant at 0% growth during the same period.
The company’s long-term financial strength is weak, as evidenced by a negative book value and a high debt profile. The average debt-to-equity ratio stands at 0 times, but the half-yearly debt-to-equity ratio has reached a high of -0.49 times, indicating elevated leverage concerns. Additionally, the debtor turnover ratio is at a low 1.14 times, suggesting slower collection efficiency.
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Recent Quarterly Results and Profitability
The company reported a net loss after tax (PAT) of Rs. -69.00 crores in the December 2025 quarter, representing a 30.8% decline compared to the previous four-quarter average. This negative profitability is compounded by a negative EBITDA, which further underscores the company’s earnings challenges.
Profitability deterioration is also reflected in a 43.4% fall in profits over the past year, aligning with the stock’s steep price decline. The combination of shrinking sales, stagnant operating profit, and increasing losses has contributed to the stock’s weak market sentiment.
Shareholding Pattern and Sectoral Performance
Reliance Communications Ltd’s majority shareholders are non-institutional investors, which may influence liquidity and trading dynamics. Within the Telecom - Services sector, the company’s stock has underperformed, with the sector itself declining by 3.16% on the day of the new low.
The broader market environment has been challenging, with the Sensex opening lower and continuing to fall, reflecting cautious investor sentiment. Despite this, the Sensex remains relatively close to its 52-week high, highlighting the divergence between Reliance Communications Ltd’s performance and the overall market trend.
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Technical and Valuation Considerations
From a technical perspective, Reliance Communications Ltd’s share price trading below all major moving averages signals persistent downward pressure. The stock’s valuation is considered risky relative to its historical averages, reflecting investor caution and uncertainty about the company’s near-term prospects.
The combination of a negative book value, high leverage, declining sales, and losses has contributed to the stock’s Strong Sell Mojo Grade. This rating was upgraded from Sell on 13 Jan 2025, indicating a worsening outlook based on MarketsMOJO’s comprehensive analysis framework.
Despite the broader market’s relative resilience, Reliance Communications Ltd’s performance remains subdued, with a one-year return of -48.33% contrasting sharply with the Sensex’s 10.91% gain. This divergence highlights the company’s specific challenges within the telecom services sector.
Summary of Key Metrics
To summarise, Reliance Communications Ltd’s key financial and market indicators as of 24 Feb 2026 are:
- New 52-week low price: Rs.0.93
- 52-week high price: Rs.1.95
- Day change: -4.12%
- Consecutive two-day fall: -7.92%
- Mojo Score: 3.0 (Strong Sell)
- Debt-to-Equity ratio (half-yearly): -0.49 times
- Net Sales growth (5 years annualised): -17.55%
- Operating profit growth (5 years): 0%
- PAT (Dec 2025 quarter): Rs. -69.00 crores (-30.8%)
- Debtors Turnover Ratio (half-yearly): 1.14 times
- One-year stock return: -48.33%
- One-year profit decline: -43.4%
These figures collectively illustrate the pressures facing Reliance Communications Ltd and the factors contributing to its recent share price decline to a new 52-week low.
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