About the Company:

Reliance Infrastructure Ltd. is one of the largest infrastructure companies engaged in developing infrastructure projects through various Special Purpose Vehicles (SPVs) in several sectors such as power, roads, metro rail and airport in the infrastructure space and the defence sector. The Co. is also a leading utility Company having a presence across the value chain of power businesses i.e. generation, transmission, distribution, and power trading.

Business segments:

Company’s Power segment business is engaged in the generation, transmission and distribution of electrical power at various locations. It operates a 220 MW Combined Cycle Power Plant at Samalkot, a 48 MW Combined Cycle Power Plant at Mormugao, and a 9.39 MW wind farm at Chitradurga. BRPL and BYPL (subsidiaries) distribute the power in the city of Delhi. BRPL caters to around 19 lakh subscribers in South and West Delhi, while BYPL caters to around 30 lakh subscribers in East and Central Delhi.

Its E&C Division is a leading service provider of integrated design, engineering, procurement, and project management services for undertaking turnkey contracts including coal-based thermal projects, gas-power projects, nuclear power projects, metro, rail, and road projects. The E&C has so far implemented the range of projects which include Coal Based Thermal Power Projects, Gas Based Combined Cycle Power Projects, Solar Photo-voltaic & Solar Thermal, Hydro-electric Power Projects, Co-generation plants, Rural Electrification Works which includes  765/400/220/132 KV Switchyards & 400/220/132 KV transmission lines 400/132 KV transmission lines and switch yards, Overhead and underground electrical networks, Industrial electrification works for petrochemicals, fertilizers, steel, cement plants, refineries, ports and hotels. Company has also completed overseas projects in Dubai, Saudi Arabia, Bhutan and Nepal. Its ongoing projects includes Project under execution and on the verge of Completion are 2 X 600 MW Raghunathpur Thermal Power Station, 2400MW Gas Based Combined Cycle Power Project, Samalkot and Sasan Mine (Moher and Moher-Amlori extension) Infrastructure development.

Company’s infrastructure business includes development, operation, and maintenance of toll roads, metro rail transit systems, and airports. Roads Business portfolio comprises 8 BOT Toll Road projects with a total stretch of 620.75 km. The Company through its subsidiaries was awarded lease rights to develop and operate 5 brown field airports in the State of Maharashtra in Nov 2009 for 95 years. It is the largest developers of road and highway projects for the National Highways Authority of India (NHAI) under the build, operate, transfer (BOT) scheme. Currently the Company has eleven road projects worth about Rs. 11,500 Cr in its portfolio, of which ten projects have started generating revenues and the remaining one would start generating revenue shortly. NHAI has lined up a robust pipeline of projects worth Rs. 48,000 Cr. which shall open up a spectrum of opportunities for Reliance Infrastructure in the near future.

The Company’s defence business has two operational JVs, that together hold 12 Industrial licenses issued by the DIPP. It has an operational JV with Dassault Aviation of France which delivered a large number of aerostructures of Falcon-2000 business jets and components of Rafale fighter jets. The JV is in the process of adding ~3,00,000 Sq Ft to its existing facility.  Various products and services offered by the company are Electronic Warfare & Navigation Systems which is offered by Thales Reliance Defence Systems Limited, a joint venture with Thales, provides state-of-the-art solutions for electronic warfare and navigation and its products includes AESA Radars, Electronic Warfare Systems and Navigation Equipment.

Company also offers Aircraft Upgrades in partnership with Hindustan Aeronautics Limited, excels in modernizing legacy aircraft to meet contemporary operational requirements through Dornier 228 Transport Aircraft and Modern Avionics. Artillery Solutions. As Design cum Development Partners for DRDO (ARDE), Reliance Defence provides next-generation artillery ammunitioncombining innovation, precision engineering, accuracy, lethality and reliability. Company also offers Artillery Ammunition which includes High-Explosive Rounds, Carrier Ammunition, Mortar and Bombs. It also specializes in high-grade explosives, Reliance Defence’s mega facility aims to manufacture reliable solutions for critical military and commercial applications with maximum impact, safety, and diverse operational requirements which includes TNT, RDX and HMX. Apart from this company also Greenfield project for manufacturing propellants, expertly crafted to power conventional and advanced munitions, as well as,aerospace misisons and this includes Single Base, Double Base, Triple Base and Special Propellants. Company is also into Small Arms Manufacturing which focuses on high-performance Small Arms with exceptional technology, quality and durability to meet the rigorous demands of the armed forces. It also offers Night Vision Devices with user qualified products using niche technology to empower armed forces with superior vision and situational awareness in low-light and no-light conditions. Apart from that company also provides Advanced Imaging Technologies which are Rugged and Reliable and comprehensive solutions for Armoured Vehicles (Upgrades & MRO) with expertise in design, upgrades, and maintenance for product life extension such as Design & Development of Hull & Turret Upgrades of Armoured Vehicles and MRO Facilities.

Reliance Infra is also a promoter of Reliance Power. In FY23 it was allotted ~33.51 Cr equity shares of Rs. 10 each of Reliance Power upon conversion of warrants issued under Preferential allotment. Reliance Power currently has an operational capacity of 5,945 MW.

Fundamentals:

Financial Results:

In Q4 FY25 company’s consolidated EBITDA (adjusted for exceptional income of RS 514 CRORE) was at RS.8,876 CRORE compared to RS.1,136 CRORE in Q3 FY25 QoQ which is almost 681% growth on QoQ basis. In Q4 FY25 company made a turnaround in financials with consolidated PAT at RS.4,387 CRORE compared to RS. (3,298) CRORE in Q3 FY25 QoQ.

As of FY25 company’s consolidated operating income was at RS.23,592 CRORE compared to RS. 22,067 CRORES in FY24 up by 7% YoY. In FY25 its consolidated EBITDA was at RS.12,288 CRORE vis-a-vis RS.4,842 CRORE in FY24 by 154% YoY. Its FY25 consolidated PAT was at Rs. 4,938 CRORE compared to RS. (1,609) CRORE in FY24. Company’s standalone NET DEBT from BANKS and FIs became ‘ZERO’ as on 31 MAR 2025 marking total DEBT REDUCTION of RS. 3,300 in FY25. Its consolidated external NET DEBT TO EQUITY stands reduced to 0.28x as on 31^st March 2025 from 0.78X as on 31 MAR 2024.

On operational front Over 44549 new households added in Delhi Discoms in Q4 FY24-25; Total households count reached 52.26 lakh. Transmission & Distribution (T&D) loss reduced below 7%, on rolling basis, in Delhi Discoms backed by high operational efficiencies. Delhi Discoms successfully met combined Peak Demand of 3,623 MW during Q4 FY24-25. Both BSES Delhi Discoms secured top rating 'A+' by REC Ltd. in Consumer Service Rating of Discoms (CSRD) for FY23-24.

Mumbai Metro One weekday ridership reached milestone figure of 500,000 in Q4 FY25 with 99.99% train availability and punctuality and Mumbai Metro Line-1 successfully completed trail run of short-loop operations for improving service frequency in high demand Andheri - Ghatkopar route.

Key Highlights:

• Reliance Infrastructure Limited promoted, Reliance Defence Limited (Reliance Defence), has secured a significant export order worth INR 600 crore from Rheinmetall Waffe Munition GmbH, a leading German defence and ammunitions manufacturer. Reliance Defence’s export order is one of the largest in the high-tech ammunition domain to date.
• Dassault Aviation and Reliance Infrastructure subsidiary, Reliance Aerostructure Limited (RAL) has entered into a landmark strategic partnership to manufacture Falcon 2000 business executive jets in India for the global markets. The partnership represents a significant step in advancing India’s aerospace manufacturing capabilities. Dassault Aviation will manufacture Falcon 2000 jets outside of France for the first time in its storied history. It marks a historic moment for Indian aerospace and manufacturing industry, as the landmark agreement paves way for India’s entry into the elite club of countries producing next-generation business jets, alongside the United States, France, Canada, and Brazil. DRAL will also become the Center of Excellence (CoE) for Falcon series, including Falcon 6X and Falcon 8X assembly programs for Dassault Aviation, the first such CoE outside France. The state-of-the-art, final assembly line for Falcon 2000 jets will be established in Nagpur, Maharashtra.
• Reliance Infrastructure Limited (Reliance Infra) has also announced that Invent Assets Securitisation and Reconstruction Private Limited, a lender to the Company, has novated certain charged securities to recover its dues. As a result, Invent ARC's entire fund based outstanding amount has been reduced to Zero. Additionally, Reliance Infra has cleared its funded outstanding dues to Life Insurance Corporation of India, Edelweiss Asset Reconstruction Company Limited, ICICI Bank, Union Bank, and other lenders. The Company’s external debt liability is down to INR 475 crore. Consequently, the net worth of the Company will stand at INR 9,041 crore.
• Reliance Infrastructure’s defence arm Reliance Defence Limited is setting up the largest Integrated project for Manufacturing of Explosives, Ammunition and Small Arms in Ratnagiri, Maharashtra The company has been allotted 1000 acres of Land in Watad Industrial Area of Ratnagiri, Maharashtra to develop Dhirubhai Ambani Defence City (DADC). DADC will be the largest GREENFIELD project in Defence Sector in India by any Private Sector company. Reliance Infrastructure will invest over Rs. 10,000 Cr over the next 10 years. Reliance Infrastructure through its subsidiaries has exported defence equipment worth more than Rs. 1,000 Cr over a period of time. Reliance Infrastructure’s wholly owned subsidiaries Jai Armaments Limited and Reliance Defence Limited already have license from Govt of India for manufacturing of Arms and Ammunition.
• Reliance Group has entered into a strategic partnership agreement with Druk Holding and Investments Ltd. (DHI), the commercial and investment arm of the Royal Government of Bhutan, to undertake various initiatives aimed at bolstering the investment in the renewable and green energy landscape of Bhutan. The partnership between Reliance Group and Druk Holding will focus on green energy generation, specifically solar and hydropower initiatives, while also exploring innovative green technologies. Reliance Group has also sets up a new company, Reliance Enterprises, dedicated exclusively to promoting investment in Bhutan's renewable and green energy sector. Reliance Enterprises jointly promoted by Reliance Infrastructure Ltd and Reliance Power Ltd. 500 MW Solar Plant: To be executed over the next two years in two phases of 250 MW each 770 MW Chamkharchhu-1 Hydro Project: Reliance Power Ltd. and Druk Holding to jointly develop the 770 MW Chamkharchhu-1 hydro project. It is classified as a run-of-the-river project and under a concession model in accordance with RGOB policy.
• Reliance Infrastructure Ltd, the flagship company of Anil Ambani's Reliance Group, is targeting Rs 3,000 crore from the export of 155 mm ammunition and aggregates by the end of financial year 2027. In the current year itself, the company is estimated to export Rs 1,500 crore of large calibre ammunition. Reliance Infrastructure has already clocked exports of up to Rs 100 crore of artillery ammunition and aggregates and is aiming to be among the top three exporters of defence equipment in India.

Conclusion:

In conclusion, Reliance Infrastructure Ltd. presents a mixed outlook from a fundamental perspective. While the company has a diversified presence in infrastructure sectors such as power, transportation, EPC projects and defence orders, it continues to face challenges related to debt levels, project execution, and regulatory hurdles. The recent strategic moves to monetize assets and reduce leverage are steps in the right direction, but consistent financial performance and operational efficiency will be crucial going forward.

Investors should closely monitor developments in the company’s debt restructuring plans, government infrastructure spending, and project pipeline execution. Although there is potential for long-term growth driven by India's infrastructure push, caution is advised due to historical volatility and financial risks. Therefore, Reliance Infrastructure may be better suited for investors with a high-risk tolerance and a long-term investment horizon.

HET ZAVERI

info@smartinvestment.in                                                                         

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