Reliance Infrastructure Ltd Falls 13.16%: Four Key Factors Driving the Sharp Decline

09 February 2026: Sharp Decline to 52-Week Low and Lower Circuit Hit

Reliance Infrastructure Ltd’s stock plunged to a new 52-week low of Rs.114.35 on 09 February 2026, closing at Rs.114.11 after hitting the lower circuit limit with a maximum daily loss of 5.0%. The stock opened sharply down by 4.67% and faced intense selling pressure throughout the session, with a wide intraday range between Rs.119.80 and Rs.114.11. Trading volumes were robust at 13.23 lakh shares, but delivery volumes declined sharply, signalling panic selling and reduced genuine investor participation.

This decline came despite the Sensex gaining 1.04% that day, highlighting the stock’s relative weakness. Reliance Infrastructure’s technical indicators deteriorated further as it traded below all key moving averages, confirming a sustained bearish trend. The stock’s Mojo Score was downgraded to 26.0 with a Strong Sell rating by MarketsMOJO on 5 February 2026, reflecting worsening fundamentals and market sentiment.

10 February 2026: Temporary Rebound Amid Lower Volumes

On 10 February, the stock partially recovered, closing at Rs.120.25, up 2.91% from the previous day’s close. However, this rebound occurred on significantly lower volumes of 1.76 lakh shares, indicating limited conviction behind the move. The Sensex also advanced modestly by 0.25%, but Reliance Infrastructure remained below all major moving averages, maintaining its bearish technical posture.

The brief uptick did little to alter the overall negative trend, as the stock remained vulnerable to further declines amid ongoing concerns about the company’s financial health and operational performance.

12 February 2026: Renewed Downtrend and Fresh 52-Week Low

The downtrend resumed on 12 February, with the stock hitting a fresh 52-week low of Rs.110.5 and closing at Rs.109.75, down 4.69% on the day. This decline extended the losing streak to two consecutive sessions, with an 8.11% loss over this period. The stock underperformed the power sector by 4.09% and the Sensex, which declined 0.56% that day.

Fundamentally, the company’s December 2025 quarterly results revealed significant weakness. Profit Before Tax excluding other income fell sharply by 89.5% to Rs.221.02 crore compared to the previous four-quarter average, while net sales dropped 19.3% to Rs.4,296.52 crore. The company reported a net loss of Rs.8.88 crore, a 100.9% decline relative to prior averages. These results have weighed heavily on investor sentiment.

Reliance Infrastructure’s leverage remains elevated, with a Debt to EBITDA ratio of 7.32 times, and its Return on Capital Employed is modest at 4.58%, indicating limited capital efficiency. Institutional investors have reduced their holdings by 1.57% over the previous quarter, now holding 6.79% of shares, reflecting cautious positioning.

13 February 2026: Continued Decline to Rs.104.30, Marking 13.16% Weekly Loss

The stock extended its losses on 13 February, reaching a new 52-week low of Rs.105.5 intraday and closing at Rs.104.30, down 4.97% on the day. This marked a three-day losing streak with an 11.48% cumulative loss. The stock underperformed the power sector by 1.21% and the Sensex, which declined 1.40%.

The persistent downtrend is underscored by the stock trading below all key moving averages and the downgrade to a Strong Sell rating by MarketsMOJO. Despite the stock’s 60.02% decline over the past year, the company’s profits have reportedly increased by 1010.2%, a divergence that may reflect accounting factors rather than operational improvement.

Valuation metrics remain attractive, with an Enterprise Value to Capital Employed ratio of 0.4 and a ROCE of 3.8, suggesting the market is pricing in significant risk. The company’s market capitalisation grade is 3, indicating mid-tier size within the power sector.

Daily Price Comparison: Reliance Infrastructure Ltd vs Sensex

Key Takeaways

Persistent Downtrend and Technical Weakness: Reliance Infrastructure Ltd’s stock has consistently traded below all major moving averages throughout the week, confirming a strong bearish momentum. The three-day losing streak culminating in a 13.16% weekly decline highlights sustained selling pressure.

Fundamental Challenges: The company’s December 2025 quarterly results revealed sharp declines in profitability and sales, with a net loss reported. Elevated leverage, as indicated by a Debt to EBITDA ratio of 7.32, and modest capital efficiency (ROCE of 4.58%) continue to weigh on investor sentiment.

Investor Sentiment and Institutional Participation: Institutional investors have reduced their holdings by 1.57%, now holding 6.79% of shares, signalling cautious positioning. Delivery volumes have declined amid high trading volumes, suggesting panic selling and reduced long-term investor conviction.

Valuation Discrepancies: Despite the sharp price decline, valuation metrics such as Enterprise Value to Capital Employed ratio of 0.4 and ROCE of 3.8 indicate the stock is trading at a discount. However, the divergence between reported profit growth and share price performance suggests market scepticism about sustainability.

Conclusion

Reliance Infrastructure Ltd’s performance over the week ending 13 February 2026 reflects a challenging environment marked by deteriorating fundamentals, technical breakdowns, and weak investor confidence. The stock’s 13.16% weekly fall starkly contrasts with the Sensex’s modest 0.54% decline, underscoring its relative underperformance. Despite attractive valuation metrics, the company’s elevated leverage, declining profitability, and reduced institutional interest suggest continued caution. The Strong Sell rating and low Mojo Score reinforce the need for careful monitoring of upcoming corporate developments and sector trends before considering exposure.

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