Reliance Communications Releases Unaudited Financial Results Amid Ongoing Insolvency Proceedings
Reliance Communications Limited has released its unaudited Standalone and Consolidated Financial Results for the quarter ended June 30, 2026. The results were approved by management at a meeting held on August 13, 2026, which was chaired by the Resolution Professional (RP).The company continues to operate under Corporate Insolvency Resolution Process (CIRP), with affairs and assets being managed by the RP, Anish Niranjan Nanavaty.
Financial Highlights for Q2 FY26
The standalone results showed Total Income of 59 crore, resulting in a Profit/Loss before Tax of 274 crore and a Profit/Loss after Tax of 274 crore for the quarter. The company recorded exceptional items related to gain on settlement of liabilities (1,566 crore) and provision for liability on account of License and Spectrum fee (2,316 crore).The consolidated results reflected Total Income of 82 crore, with a Profit/Loss before Tax of 459 crore. The company recorded exceptional items including profit on de-Subdisassociation (468 crore) and provision for credit impaired (179 crore).
A key aspect noted in the unaudited financials is that the accounting for interest on borrowings and foreign exchange variation (gain)/loss, which are related to the CIRP, was not provided. Had these amounts been included, the reported loss for the quarter ended June 30, 2026 would have been higher by 1,099 crore in both standalone and consolidated results. The auditors have drawn a qualification in their Limited review report regarding this non-provision.
Corporate Governance and Operational Status
The company's financial statements reflect various material factors related to its ongoing insolvency proceedings and regulatory matters:Corporate Restructuring:
- Reliance Communications (UK) Limited, a foreign step-down subsidiary of the Company, was deconsolidated effective June 09, 2026, resulting in an exceptional item gain on deconsolidation of 290 crore.
- The company also noted the status change of Reliance Telecom Infrastructure (Cyprus) Holding Limited, a foreign step-down subsidiary, as "Dissolved" effective April 17, 2026, leading to a profit on deconsolidation of 3 crore in consolidated results.
Regulatory and Legal Scrutiny:
- The company has been subject to searches and summons by the Directorate of Enforcement (ED) and the Central Bureau of Investigation (CBI). CBI officials seized original records related to Non-Convertible Debentures (NCDs) and Commercial Papers (CPs) issued by the Company, as well as corporate governance records.
- The company and its subsidiaries received notices regarding potential classification as willful defaulters by various banks, which are being addressed in response filings within the context of the prevailing moratorium under the Insolvency and Bankruptcy Code.
- The Adjudicating Authority, PMLA, confirmed three provisional attachment orders (PAO Nos. 32, 36, and 40 of 2025) concerning assets of Reliance Realty Limited (RRL), Campion Properties Limited (CPL), and RCOM on April 10, 2026.
Financial Status Summary
The following tables provide a comparison of key financial metrics across the reported periods:Standalone Unaudited Financial Results for Q ended June 30, 2026 in Crore
| Particulars | Qtr Ended 30-Jun-26 (Unaudited) | Qtr Ended 31-Mar-26 (Audited) | Qtr Ended 30-Jun-25 (Unaudited) | Qtr Ended 31-Mar-26 (Audited) |
|---|---|---|---|---|
| Total Income | 59 | 58 | 63 | 230 |
| Profit/Loss before Tax | 274 | (321) | (41) | (530) |
| Total Comprehensive Income/(Loss) | (663) | (2,724) | (2,217) | (9,688) |
| Paid-up Equity Share Capital | 1,383 | 1,383 | 1,383 | 1,383 |
Consolidated Unaudited Financial Results for Q ended June 30, 2026 in Crore
| Particulars | Qtr Ended 30-Jun-26 (Unaudited) | Qtr Ended 31-Mar-26 (Audited) | Qtr Ended 30-Jun-25 (Unaudited) | Qtr Ended 31-Mar-26 (Audited) |
|---|---|---|---|---|
| Total Income | 82 | 89 | 91 | 346 |
| Profit/Loss before Tax | (9) | (130) | (34) | (311) |
| Profit/Loss after Tax | 457 | (308) | (34) | (495) |
Key Ratio Data for Q ended June 30, 2026 in Crore
| Particulars | Unaudited (Q ended 30-Jun-26) | Audited (Q ended 31-Mar-26) | Unaudited (Q ended 30-Jun-25) | Audited (Q ended 31-Mar-26) |
|---|---|---|---|---|
| Current Ratio | 0.05 | 0.05 | 0.05 | 0.05 |
| Total Debts to Total Assets | 1.26 | 1.30 | 1.30 | 1.30 |
| Networth | (1,04,759) | (1,03,950) | (95,385) | (1,03,950) |
| Operating margin (%) (Continuing operations) | (9.22) | (157.76) | (36.76) | (95.09) |
RCOM Stock Price Movement
On Friday, shares of Reliance Communications Limited gained 1.25% in the market, settling at ₹0.81 after adding ₹0.01 per share.The equity recorded a total traded volume of 4.07 million shares during the session.
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