RELINFRA - Reliance Infra.

📊 NSE: RELINFRA 🏢 Engineering - Turnkey Services 📅 Last Updated: 12/14/2025 11:48

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 6.57% YoY to INR 23,999 Cr in FY25 from INR 22,519 Cr in FY24. Key segments include Power Distribution (BSES), which serves 5.3 million customers, and Roads, with an average daily toll collection of INR 2.57 Cr.

Geographic Revenue Split

The revenue is primarily domestic-focused, with the Power Distribution segment (BSES) powering 2/3rd of Delhi across an 851 sq. km. service area. The Roads segment manages 2,472 lane km across various Indian states.

Profitability Margins

Consolidated EBITDA showed a significant increase to INR 12,289 Cr in FY25, representing a 51.2% margin, compared to INR 4,832 Cr (21.4% margin) in FY24. However, standalone PAT remains negative at INR -1,930.18 Cr for FY24 and INR -1,324.05 Cr for 9MFY25.

EBITDA Margin

EBITDA margin improved dramatically to 51.2% in FY25 from 21.4% in FY24, driven by a 154% YoY increase in absolute EBITDA to INR 12,289 Cr, likely due to debt rebalancing and regulatory asset visibility.

Capital Expenditure

The company is shifting focus toward high-value growth engines including Defence manufacturing and Renewables (Solar and Battery systems). Specific planned INR Cr for future capex is not disclosed, but the strategy emphasizes disciplined capital allocation into India's $5T growth engines.

Credit Rating & Borrowing

Interest coverage ratio was -0.41 in FY24 and worsened to -0.48 in 9MFY25. The company has focused on reducing net debt, which fell 40.5% from INR 11,715 Cr in FY24 to INR 6,968 Cr in FY25.

⚙️ Operational Drivers

Raw Materials

Specific raw material names like steel or copper are not listed, but the business relies on power purchase for distribution and components for aerospace assemblies (Rafale/Falcon 2000). Ammunition and explosives are key inputs for the new defence vertical.

Import Sources

Aerospace components are sourced via JVs with French partners (Dassault, Thales). Other materials are sourced domestically for the E&C and Infrastructure segments.

Key Suppliers

Strategic partners include Dassault Aviation and Thales (France) for aerospace, and Rheinmetall (Germany) for defence systems. Specific commodity suppliers are not disclosed.

Capacity Expansion

BSES manages a peak power of ~5,700 MW. The Metro segment has an 11.4 km operational length with 5 Lakh+ daily ridership. Defence expansion includes the first Falcon 2000 Final Assembly Line outside France.

Raw Material Costs

Not disclosed as a specific percentage of revenue, but the company is transitioning to a 'de-risked' model by eliminating group guarantees and support letters to ensure standalone financial integrity.

Manufacturing Efficiency

Metro ridership has exceeded 110 Crore since inception; Roads serve 2.85 Lakh+ average daily vehicles with a 2,472 lane km management scale.

Logistics & Distribution

Distribution is a core business via BSES, which is described as the 'perennial cash flow engine' powering 2/3rd of Delhi.

📈 Strategic Growth

Expected Growth Rate

7.80%

Growth Strategy

Growth will be achieved by pivoting to 'New Growth Engines': Defence (aerospace, ammunition, MRO), Renewables (solar/battery), and Power Distribution. The strategy involves 'Rebalancing' the capital structure to eliminate over-leverage and 'Ring-fencing' businesses to isolate financial risks.

Products & Services

Power distribution services (BSES), Toll road operations, Metro rail services, Rafale assemblies, Falcon 2000 business jets, and Ammunition/Explosives.

Brand Portfolio

Reliance Infrastructure, BSES (BRPL and BYPL), Reliance Defence, Mumbai Metro.

New Products/Services

Launch of MRO (Maintenance, Repair, and Overhaul) capability hubs and ammunition manufacturing; expected to contribute to the 'New Growth Engines' vertical.

Market Expansion

Targeting high-value niches in aerospace and defence aligned with 'Make in India' and 'Atmanirbhar Bharat' initiatives.

Market Share & Ranking

BSES is India's largest private Discom. The company is a 'focused niche leader' in the defence market dominated by state players.

Strategic Alliances

Joint Ventures with Dassault Aviation and Thales; Strategic Partnerships with Rheinmetall, DIHEL, and STV for export potential.

🌍 External Factors

Industry Trends

The industry is shifting toward renewable energy and domestic defence production. Reliance is positioning itself as a 'de-risked' platform with visible cash flows from utility assets to fund these shifts.

Competitive Landscape

Competes with major state-owned and large private players in the infrastructure and defence sectors.

Competitive Moat

Moat consists of long-term utility concessions (BSES) and high-entry-barrier defence JVs. BSES's 2/3rd market share in Delhi provides a stable, perennial cash flow engine.

Macro Economic Sensitivity

Highly sensitive to India's infrastructure spending and 'Viksit Bharat' roadmap aiming for a $5T economy.

Consumer Behavior

Increasing daily ridership in Metro (5 Lakh+) and vehicle traffic on toll roads (2.85 Lakh+) indicates strong demand for urban infra.

Geopolitical Risks

Defence segment benefits from 'Atmanirbhar Bharat' (self-reliance) policies which favor domestic manufacturing over imports.

⚖️ Regulatory & Governance

Industry Regulations

Operations are subject to regulatory oversight by SEBI, ED, and SFIO regarding past actions. Power distribution is heavily regulated by electricity commissions regarding tariff and regulatory assets.

Environmental Compliance

The company is expanding into Renewables (Solar and Battery systems) to align with ESG and national sustainability goals.

Legal Contingencies

The company has over INR 10,000 Cr across 15+ arbitration claims. There are also ongoing concerns regarding actions by regulators like SEBI, ED, and SFIO.

⚠️ Risk Analysis

Key Uncertainties

Business continuity risk in E&C (high impact if new contracts aren't signed). Legal risks from weak implementation of regulatory commitments in contracts.