Reliance Communications narrows half-year loss to Rs 3,847 crore

Reliance Communications Limited reported a consolidated loss of Rs 3,847 crore for the half year ended September 30, 2026, compared with a Rs 5,261 crore loss a year earlier, as discontinued operations recorded a Rs 4,268 crore pre-tax loss that included a Rs 5,271 crore licence-and-spectrum-fee provision.

What drove Reliance Communications’ half-year loss?

Reliance Communications’ half-year loss was principally driven by discontinued operations, which recorded a Rs 4,268 crore pre-tax loss in the half year ended September 30, 2026. That was lower than the Rs 5,142 crore pre-tax loss in the corresponding 2025 half year, but it outweighed the Rs 423 crore pre-tax profit from continuing operations.

The discontinued-operations result included a Rs 5,271 crore provision for licence and spectrum fees. It also included a Rs 1,634 crore gain on settlement of liabilities, partly offsetting the provision. In the half year ended September 30, 2025, discontinued operations included a Rs 2,323 crore licence-and-spectrum-fee provision and Rs 2,588 crore of discontinued exceptional items.

Reliance Communications reported a total comprehensive loss of Rs 3,654 crore for the September 2026 half year, compared with Rs 5,243 crore a year earlier. Other comprehensive income was Rs 193 crore, against Rs 18 crore in the prior-year half, while the consolidated loss for the latest period was Rs 3,847 crore.

How did Reliance Communications’ continuing operations perform?

Reliance Communications generated Rs 161 crore of revenue from operations in the half year ended September 30, 2026, down from Rs 170 crore in the corresponding 2025 period. Including other income, total income declined to Rs 161 crore from Rs 185 crore, while continuing operations reported a Rs 423 crore pre-tax profit after exceptional items.

That continuing-operations profit included Rs 463 crore of exceptional items in the September 2026 half year. Before exceptional items and tax, Reliance Communications recorded a Rs 40 crore loss, compared with a Rs 119 crore loss before exceptional items and tax in the prior-year period. Finance costs were Rs 22 crore in each half year.

India operations supplied all Rs 161 crore of segment revenue in the latest half year, while global operations reported no revenue. India operations generated Rs 185 crore a year earlier, while global operations then recorded Rs 2 crore before Rs 2 crore of inter-segment revenue was eliminated. India operations’ loss before tax and finance cost narrowed to Rs 18 crore from Rs 95 crore.

In the quarter ended September 30, 2026, revenue from operations was Rs 79 crore, compared with Rs 82 crore in the June 2026 quarter and Rs 87 crore in the September 2025 quarter. Continuing operations reported a Rs 36 crore pre-tax loss in the September quarter, after a Rs 459 crore pre-tax profit in June that included Rs 468 crore of exceptional items.

What does Reliance Communications’ balance sheet show?

Reliance Communications reported total assets of Rs 36,158 crore as at September 30, 2026, compared with Rs 36,338 crore at March 31, 2026. Assets held for sale were unchanged at Rs 26,256 crore at both dates, while trade receivables declined to Rs 123 crore from Rs 308 crore.

Total equity was negative Rs 1,06,219 crore at September 30, 2026, compared with negative Rs 1,02,570 crore at March 31, 2026. Equity share capital remained Rs 1,383 crore, while other equity attributable to shareholders moved to negative Rs 1,07,602 crore from negative Rs 1,03,948 crore.

Total liabilities rose to Rs 1,42,376 crore at September 30, 2026 from Rs 1,38,909 crore at March 31, 2026. Current liabilities increased to Rs 1,41,642 crore from Rs 1,38,162 crore, including Rs 78,469 crore of other financial liabilities, compared with Rs 73,172 crore six months earlier.

Segment disclosures put India-operation liabilities at Rs 1,42,778 crore at September 30, 2026, up from Rs 1,39,928 crore at June 30, 2026 and Rs 1,33,128 crore a year earlier. India-operation assets were Rs 36,613 crore, while global-operation assets were Rs 839 crore and unallocable assets were Rs 606 crore before inter-segment eliminations.

What happened to Reliance Communications’ cash flow and insolvency process?

Reliance Communications generated Rs 56 crore of net cash from operating activities in the half year ended September 30, 2026, compared with Rs 32 crore in the prior-year half. Cash generated from operations was Rs 58 crore after Rs 5,914 crore of working-capital movements, including a Rs 5,740 crore increase in trade payables and other liabilities.

Cash and cash equivalents increased to Rs 205 crore at September 30, 2026 from Rs 174 crore at the start of the half year. The movement reflected Rs 56 crore of operating cash inflow, Rs 5 crore of investing cash outflow and Rs 21 crore of financing cash outflow. In the September 2025 half year, cash and cash equivalents declined by Rs 29 crore to Rs 165 crore.

Reliance Communications remains in the corporate insolvency resolution process, or CIRP, and its resolution professional exercises the powers of the board. A resolution plan approved by the committee of creditors on March 2, 2020 was before the National Company Law Tribunal, or NCLT, which posted the application to December 17, 2026 after its October 26, 2026 hearing.

The resolution professional signed the September 2026 financial results solely to meet applicable-law compliance, relying on certifications, representations and statements from key managerial personnel and erstwhile management. The auditors drew attention to the licence-fee and spectrum-usage-charge provision, which is based on management estimates pending a special audit by the Department of Telecommunications and may be revised as the matter develops.

Conclusion

Reliance Communications’ Rs 3,847 crore half-year loss was lower than the Rs 5,261 crore loss reported a year earlier, but discontinued operations and the Rs 5,271 crore licence-and-spectrum-fee provision continued to determine the result. Continuing operations generated Rs 161 crore of revenue and a Rs 423 crore pre-tax profit after exceptional items, which did not offset the discontinued-operations loss.

The next disclosed event is the NCLT hearing on December 17, 2026 for the resolution-plan application. The licence-fee and spectrum-usage-charge provision remains subject to the Department of Telecommunications’ special audit and may be revised, while Reliance Communications ended September 30, 2026 with Rs 205 crore of cash and cash equivalents.