Reliance Communications Falls to 52-Week Low of Rs.1.13 Amidst Continued Downtrend

Stock Price Movement and Market Context

On 18 Dec 2025, Reliance Communications recorded a closing price of Rs.1.13, its lowest level in the past 52 weeks. This price point represents a sharp contrast to its 52-week high of Rs.2.21, indicating a near 49% reduction over the period. The stock has been on a downward trajectory for three consecutive trading sessions, cumulatively losing approximately 5.83% in returns during this span.

In comparison, the broader Sensex index opened flat at 84,518.33 points and was trading near 84,558.71 points, remaining just 1.89% below its own 52-week high of 86,159.02. The Sensex’s performance contrasts with Reliance Communications’ decline, as the benchmark continues to trade above its 50-day and 200-day moving averages, signalling a generally bullish market environment.

Reliance Communications’ stock price is currently trading below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages. This technical positioning underscores the stock’s sustained weakness relative to short-term and long-term trends.

Financial Performance and Fundamental Indicators

Over the last year, Reliance Communications has recorded a total return of approximately -48.87%, a stark contrast to the Sensex’s positive return of 5.43% over the same period. This underperformance extends beyond the last year, with the stock consistently lagging behind the BSE500 index in each of the previous three annual periods.

The company’s net sales have shown a negative compound annual growth rate of -17.98% over the past five years, while operating profit has remained stagnant at 0% growth during the same timeframe. These figures highlight a lack of expansion in core revenue streams and operating efficiency.

Reliance Communications’ balance sheet reflects a negative book value, indicating that liabilities exceed assets, which points to weak long-term fundamental strength. The average debt-to-equity ratio stands at zero, but recent half-year data shows a debt-to-equity ratio of -0.49 times, signalling elevated leverage concerns. Additionally, the operating profit to interest coverage ratio for the latest quarter is at a low of -4.91 times, suggesting difficulties in meeting interest obligations from operating earnings.

Recent Quarterly Results

The company reported a net loss after tax (PAT) of Rs. -85.00 crores in the most recent quarter, representing a decline of 116.6% compared to the average of the previous four quarters. This negative profitability further compounds the financial pressures on the company and contributes to the stock’s subdued market valuation.

Moreover, the company’s earnings before interest, taxes, depreciation and amortisation (EBITDA) have been negative, which adds to the risk profile of the stock when compared to its historical valuation averages.

Shareholding and Sectoral Position

Reliance Communications operates within the Telecom - Services sector, which has generally shown resilience in broader market conditions. However, the company’s stock has underperformed its sector peers, with a day change of -4.24% and an underperformance of 4.19% relative to the sector on the day of the new low.

The majority of the company’s shares are held by non-institutional investors, which may influence liquidity and trading dynamics in the stock.

Despite the broader market’s positive tone, as evidenced by the Sensex trading above its key moving averages, Reliance Communications remains in a subdued position, reflecting the challenges it faces in reversing its downward trend.

Summary of Key Metrics

To summarise, Reliance Communications’ key financial and market metrics as of 18 Dec 2025 include:

• 52-week low price: Rs.1.13


• 52-week high price: Rs.2.21


• One-year total return: -48.87%


• Debt-to-equity ratio (half-year): -0.49 times


• Operating profit to interest coverage (quarter): -4.91 times


• Net loss after tax (latest quarter): Rs. -85.00 crores


• Consecutive three-day price decline: -5.83%

These figures collectively illustrate the pressures on the company’s financial health and market valuation, contributing to the stock’s recent 52-week low.

Market Outlook and Technical Positioning

While the Sensex remains close to its 52-week high and trades above its 50-day and 200-day moving averages, Reliance Communications’ stock price remains below all major moving averages, indicating a technical downtrend. This divergence highlights the stock’s relative weakness within the broader market context.

The stock’s recent performance, including the three-day consecutive decline and underperformance relative to the sector, suggests continued caution among market participants regarding its near-term prospects.

Conclusion

Reliance Communications’ fall to a 52-week low of Rs.1.13 reflects a combination of subdued financial results, negative profitability, and technical weakness. The company’s negative book value, declining net sales, and elevated debt metrics contribute to the challenges faced by the stock. Despite a generally positive market environment, the stock’s performance remains under pressure, as evidenced by its consistent underperformance against benchmark indices and sector peers over the past year.

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