RCOM Q2 FY26 Results: ₹3,286cr Loss Amid Insolvency

Board Meeting Outcomes

1. Approval of Financial Results

The Board of Directors, chaired by Resolution Professional Mr. Anish Niranjan Nanavaty, considered and took on record the Unaudited Standalone and Consolidated Financial Results for the quarter and half year ended September 30, 2026, along with Limited Review Reports issued by the Statutory Auditors.

The meeting commenced at 10:56 AM and concluded at 01:05 PM on November 14, 2026.

2. Reclassification Request from Reliance Innoventures Private Limited

The Board considered a request received via email dated November 13, 2026, from Reliance Innoventures Private Limited (RIPL) seeking reclassification from 'Promoter and Promoter Group' category to 'Public' category pursuant to Regulation 31A of SEBI LODR Regulations.

The Board noted that:

RIPL has undergone Corporate Insolvency Resolution Process under IBC 2016
The successful resolution plan submitted by Sagacious Capital Private Limited was approved by NCLT vide order dated January 6, 2026
Management and control of RIPL has vested with SCPL
RIPL has disposed of its entire shareholding in RCOM (Nil shareholding as of September 30, 2026)
RIPL is neither involved in day-to-day operations nor exercises any control over RCOM

The Company will place this request before the Committee of Creditors for their approval.

Financial Performance Summary

Standalone Results (₹ in crore)

| Total Income | 59 | 59 | 118 | 230 |

| Total Expenses | 93 | 75 | 168 | 581 |

| Loss before Exceptional Items | (34) | (16) | (50) | (351) |

| Exceptional Items | - | 290 | 290 | 179 |

| Profit/(Loss) before Tax | (34) | 274 | 240 | (530) |

| Loss from Discontinued Operations | (2,589) | (937) | (3,526) | (9,158) |

| Total Comprehensive Loss | (2,623) | (663) | (3,286) | (9,688) |

Consolidated Results (₹ in crore)

| Total Income | 79 | 82 | 161 | 346 |

| Total Expenses | 110 | 91 | 201 | 660 |

| Loss before Exceptional Items | (31) | (9) | (40) | (314) |

| Exceptional Items | (5) | 468 | 463 | (179) |

| Profit/(Loss) before Tax | (36) | 459 | 423 | (490) |

| Loss from Discontinued Operations | (3,002) | (1,266) | (4,268) | (10,630) |

| Total Comprehensive Loss | (2,829) | (825) | (3,654) | (11,075) |

Key Financial Position (Standalone as of Sep 30, 2026)

Total Assets: ₹38,919 crore
Total Equity: Negative ₹82,177 crore
Current Liabilities: ₹121,004 crore
Borrowings: ₹38,380 crore
Cash and Cash Equivalents: ₹201 crore

Auditor Qualifications and Key Concerns

Pathak H.D. & Associates LLP issued a limited review report with multiple qualifications:

1. Assets Held for Sale (Note 4 & 6)

Wireless Spectrum, Towers, Fiber and Media Convergence Nodes continue to be classified as held for sale at values ascertained at March 31, 2018
Non-determination of fair value not in compliance with Ind AS 105
Unable to comment on impact on carrying amount and reported losses

2. Non-provision of Interest and Forex Losses (Note 5)

Interest not provided: ₹1,283 crore (Q2 FY26), ₹2,417 crore (H1 FY26), ₹39,078 crore (cumulative up to previous FY)
Forex loss not provided: ₹235 crore (Q2 FY26), ₹200 crore (H1 FY26), ₹5,983 crore (cumulative up to previous FY)
Had these been provided, loss would be higher by ₹1,518 crore (Q2) and ₹2,617 crore (H1)
Net worth would be lower by ₹47,678 crore (Sep 30, 2026) and ₹45,061 crore (Mar 31, 2026)
Non-compliance with Ind AS 23 and Ind AS 21

3. Comprehensive Review Pending (Note 4 & 18)

Pending review of carrying amount of all assets and liabilities
Impact of forensic audit report by BDO India LLP for period April 2013-March 2017
Communications from banks regarding willful defaulter and fraud classifications
Non-compliance with Ind AS 109, Ind AS 36, and Ind AS 37

4. Bonn Investment Inc. Transaction (Note 20)

Unauthorized sale of property for USD 8.34 million (~₹80.05 crore) by erstwhile director
Investment of sale proceeds with AZCO Real Estate Brokers LLC without authorization
No provision made based on management's hope of recovery
Financial statements of Bonn are unaudited and certified by management

5. ED/CBI Investigations (Note 21)

Searches conducted at RCOM premises by ED and CBI
Provisional attachment of properties of RCOM and subsidiaries under PMLA
Certain individuals arrested
Unable to determine potential impact of pending investigations

6. Going Concern Uncertainty (Note 4 & 11)

Continuous losses incurred
Current liabilities exceed current assets
Default in repayment of borrowings and statutory dues
Pending renewal of Telecom Licenses
Termination of Spectrum (Note 28)
Potential impact of matters stated in Note 18 and 21
Accounts prepared on going concern basis but auditors unable to obtain sufficient evidence

7. Non-adoption of Ind AS 116 (Note 12)

Lease agreements considered short-term due to assets held for sale
Ind AS 116 not applied, not in compliance with accounting standards

Corporate Insolvency Resolution Process (CIRP) Status

Background

CIRP commenced on May 15, 2018, pursuant to application by Ericsson India Pvt. Ltd.
Mr. Anish Niranjan Nanavaty appointed as Resolution Professional on June 28, 2019
Powers of board of directors vested in RP

Current Status

Resolution plan approved by CoC on March 2, 2020
NCLT hearing adjourned sine die on October 5, 2023 due to pending spectrum issues before Supreme Court
Last heard on October 26, 2026 - matter posted to December 17, 2026
Curative petitions filed before Supreme Court regarding spectrum issues

Subsidiaries under CIRP

Reliance Telecom Limited (RTL): CIRP ongoing, matter posted to December 18, 2026
Reliance Communications Infrastructure Limited (RCIL): Resolution plan approved by NCLT on December 19, 2023, but currently unimplementable per NCLT order dated August 21, 2026
Reliance Infratel Limited (RITL): Resolution plan implementation completed, ceased to be subsidiary w.e.f. December 22, 2022

Significant Legal and Regulatory Matters

1. Spectrum and License Issues

DoT terminated assigned spectrum w.e.f. October 5, 2026 due to non-payment of deferred spectrum installments
Multiple petitions pending before TDSAT for license migration
Special audit by DoT for computation of License fee, Spectrum fee ongoing
Provision made for estimated liability: ₹63,765 crore (standalone) and ₹71,086 crore (consolidated) up to previous year
Additional charge of ₹4,716 crore (standalone) and ₹5,271 crore (consolidated) during H1 FY26

2. Enforcement Directorate (ED) Investigations

Provisional Attachment Orders issued for assets of RCOM and subsidiaries:
PAO No. 32 of 2025: Campion Properties Limited assets
PAO No. 36 of 2025: Reliance Realty Limited assets
PAO No. 40 of 2025: RCOM and RRL assets
PAO No. 19 of 2026: RCOM assets
All PAOs confirmed by Adjudicating Authority, PMLA
Prosecution complaints filed before Special Court
Applications filed for release of attached properties under IBBI circular

3. Central Bureau of Investigation (CBI) Investigations

Multiple searches conducted at RCOM offices
Seizure of original board minutes, financial records, banking documents
Investigation related to bank fraud and money laundering

4. Serious Fraud Investigation Office (SFIO)

Notice received for investigation into affairs of RCOM and RCIL
Information sought for period FY 2008-09 to FY 2024-25
Information provided by Company

5. Willful Defaulter and Fraud Classification

Multiple banks issued show cause notices for willful defaulter classification
Certain banks declared RTL as willful defaulter
Company maintains such classification is barred during moratorium under IBC

Other Significant Events

1. NCD Details (₹ in crore)

| 11.20% NCDs | 2,588 | Mar 1, 2019 (unpaid) | 3,174 |

| 11.25% NCDs | 750 | Feb 7, 2018 & Feb 7, 2019 (unpaid) | 800 |

2. De-subsidiarization

Reliance Communications (UK) Limited: Dissolved w.e.f. June 9, 2026 - Profit of ₹290 crore recognized
Reliance Telecom Infrastructure (Cyprus) Holding Limited: Dissolved w.e.f. April 17, 2026 - Profit of ₹3 crore recognized
Reliance Communications (Singapore) Pte. Limited: Struck off w.e.f. August 6, 2026 - Loss of ₹5 crore recognized

3. Gain on Settlement of Liabilities

Recognition of ₹1,566 crore (standalone) and ₹1,634 crore (consolidated) gain due to reduction in claims from RITL resolution plan payouts

4. Bank Guarantee Invocation

DoT invoked/encashed Financial Bank Guarantees of ₹801.91 crore (RCOM) and ₹0.58 crore (RTL)
Banks confirmed invoked but not encashed (RCOM), encashed but challenged (RTL)
No financial impact recognized

5. Annual General Meeting

Applied to ROC for extension of time for conducting AGM for FY 2025-26
NCLT directed ROC to process application and not take coercive action

Capital Structure

Paid-up Equity Share Capital: ₹1,383 crore (Face value ₹5 each)
No change during the period

Compliance with Regulatory Requirements

Financial results signed by Resolution Professional in view of ongoing CIRP
RP has relied on certifications, representations and statements of KMPs and erstwhile management
Disclaimers provided regarding accuracy and completeness of information

#Tags: #RelianceCommunications #SEBIDisclosure #Insolvency #FinancialResults #RegulatoryCompliance #Negative