Stock Performance and Market Context
On 11 Dec 2025, Reliance Infrastructure opened with a gap down of 2.19%, continuing its recent pattern of underperformance. The stock touched an intraday low of Rs.128.5, representing a 4.57% decline during the trading session. This level marks the lowest price point for the stock in the past year, a stark contrast to its 52-week high of Rs.425. Over the last nine trading days, the stock has recorded a cumulative return of -24.91%, signalling sustained selling pressure.
In comparison, the broader Sensex index experienced a mild decline of 0.18%, closing at 84,240.94 points, which is approximately 2.28% below its own 52-week high of 86,159.02. The Sensex continues to trade above its 50-day and 200-day moving averages, indicating a generally bullish trend for the market overall. However, Reliance Infrastructure’s share price remains below all key moving averages, including the 5-day, 20-day, 50-day, 100-day, and 200-day averages, underscoring its relative weakness within the power sector.
Financial Metrics and Profitability Trends
Reliance Infrastructure’s financial performance over recent quarters has shown signs of strain. The company’s profit before tax (PBT) excluding other income for the quarter ending September 2025 stood at Rs.962.95 crore, reflecting a decline of 47.1% compared to the average of the previous four quarters. Net profit after tax (PAT) for the same period was Rs.402.24 crore, down by 61.1% relative to the prior four-quarter average.
These figures highlight a contraction in profitability, which has likely contributed to the subdued investor sentiment and the stock’s downward trajectory. The company’s return on capital employed (ROCE) remains modest at 4.58%, indicating limited efficiency in generating returns from its capital base. Additionally, the debt servicing capacity appears constrained, with a high Debt to EBITDA ratio of 7.32 times, suggesting elevated leverage levels.
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Investor Participation and Shareholding Patterns
Institutional investors have reduced their holdings in Reliance Infrastructure by 3.29% over the previous quarter, bringing their collective stake to 8.36%. This decline in institutional participation may reflect a reassessment of the company’s fundamentals by investors with greater analytical resources. The reduced institutional interest coincides with the stock’s underperformance relative to broader market indices and sector peers.
Long-Term and Recent Returns
Over the past year, Reliance Infrastructure’s stock has delivered a return of -56.60%, significantly lagging the Sensex’s 3.33% gain during the same period. The stock has also underperformed the BSE500 index across multiple time frames, including the last three years, one year, and three months. This persistent underperformance highlights challenges in both the company’s operational and financial positioning within the power sector.
Valuation and Comparative Metrics
Despite the subdued price performance, Reliance Infrastructure’s valuation metrics suggest a relatively attractive entry point compared to its historical averages and sector peers. The company’s ROCE of 3.8 and an enterprise value to capital employed ratio of 0.4 indicate that the stock is trading at a discount relative to comparable companies in the power industry. Notably, the company’s profits have shown a substantial rise of 617.5% over the past year, a factor that contrasts with the stock’s price movement and may warrant further analysis.
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Sector and Market Environment
Reliance Infrastructure operates within the power sector, which has experienced mixed performance in recent months. While the broader market, as represented by the Sensex, maintains a generally positive trend supported by bullish moving averages, Reliance Infrastructure’s share price has diverged notably. The stock’s underperformance relative to the sector and market benchmarks underscores the challenges faced by the company in maintaining investor confidence.
Summary of Key Price and Performance Indicators
To summarise, Reliance Infrastructure’s stock has reached Rs.128.5, its lowest level in 52 weeks, following a nine-day losing streak. The stock’s decline of nearly 25% over this period contrasts with the Sensex’s modest fluctuations. The company’s financial indicators reveal pressures on profitability and leverage, while institutional investors have reduced their holdings. Despite these factors, valuation metrics suggest the stock is trading at a discount compared to peers, with recent profit growth presenting a complex picture.
Investors and market watchers will continue to monitor Reliance Infrastructure’s price movements and financial disclosures closely as the company navigates its current challenges within the power sector.
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