Reliance (RCOM) | News Based Sentiment Analysis

• On August 29, 2025, Reliance Communications released its unaudited financial results for the quarter ended June 30, 2025, revealing a continued decline in performance. Revenue from Operations decreased to ₹83 crore, down from ₹97 crore year-over-year, and the Net Loss After Tax significantly worsened to ₹34 crore compared to a ₹1 crore loss in the same quarter last year. This highlights the ongoing financial difficulties facing the company during its insolvency proceedings.
• Adding to the financial strain, Bank of India joined SBI and Bank of India in declaring Reliance Communications and Anil Ambani’s loan accounts as 'fraud' on August 29, 2025, alleging diversion of funds. This follows a forensic audit report from October 2020 identifying misappropriation of funds totaling over ₹31,580 crore, reinforcing the severity of the allegations.
• Investor concern intensified as RCom’s share price continued to decline. On September 5, 2025, the stock dropped 3% after Bank of Baroda’s fraud declaration, closing at 1.39 with a 0.72% change. This followed an earlier dip of 3.63% on the NSE after similar announcements, demonstrating a clear negative market reaction to the unfolding situation.
• Further compounding the issues, Bank of Baroda also declared RCom and Anil Ambani’s loan accounts as 'fraud' on September 5, 2025, with flagged loan accounts totaling ₹725 crore by Bank of India and SBI’s credit exposure reaching ₹2,227.64 crore. These declarations underscore the widespread concerns about financial irregularities within the company.
• Despite the legal and financial turmoil, Reliance Communications announced its 21st Annual General Meeting and released its Annual Report for 2024-25 on September 8, 2025. This routine corporate activity occurs amidst significant scrutiny of the company’s financial health and ongoing insolvency proceedings.
• A request was made to reclassify shares held by promoters to the 'Public' category on September 4, 2025, as promoter holding currently stands at 0.77%, a decrease of -4.41% over the last 3 years. The Resolution Professional is seeking legal advice regarding this reclassification.
• As of September 8, 2025, RCom’s share price continued its negative trend, trading at 1.380 INR with a daily decline of -2.13% on the NSE. The stock has experienced substantial losses over various periods, including -15.34% in the last week, -13.5% year-to-date, -23% in the past six months, and -10% in the past year.

The Investment Story: September 2025 proved to be another challenging month for Reliance Communications, marked by escalating fraud allegations from multiple banks and a continued decline in its financial performance and share price. The company remains deeply entrenched in insolvency proceedings while facing mounting legal and financial pressures.

What It Means for Investors: The ongoing fraud investigations and deteriorating financial results significantly diminish any potential for recovery for investors. The risk associated with RCom remains extremely high, and the likelihood of substantial returns appears increasingly remote.

Looking Ahead: Investors should closely monitor the progress of the Corporate Insolvency Resolution Process and any further developments in the CBI and bank investigations. The outcome of the promoter holding reclassification request could also provide further insight into the company’s future.

The Bottom Line: Reliance Communications continues to navigate a dire situation, with mounting fraud allegations and worsening financial performance. The company represents a highly speculative and risky investment, and investors should exercise extreme caution.