Company Overview
Reliance Infrastructure Limited filed its annual report and financial statements for FY 2025-26, revealing significant operational challenges and regulatory scrutiny. The company convened its 97th AGM on August 14, 2026, to approve financial statements, director reappointments, and auditor appointments.
Financial Performance
The company reported contrasting results: a standalone net loss of ₹607 crore due to operational challenges and exceptional items, while consolidated performance showed a net profit of ₹2,900 crore attributable to owners, primarily supported by ₹4,964 crore in regulatory income from Delhi Discom operations. Total consolidated income stood at ₹20,862 crore with regulatory assets of ₹34,728 crore at Delhi Discoms.
Auditor Disclaimer and Regulatory Challenges
Auditors Chaturvedi & Shah LLP issued a disclaimer of opinion on both standalone and consolidated financial statements, citing two critical uncertainties: recovery of ₹4,705.74 crore in Economic Rights from Odisha Discom investments, and ongoing investigations by multiple regulatory authorities including Enforcement Directorate (ED), SEBI, and Serious Fraud Investigation Office (SFIO) regarding suspected fraud through CLE Private Limited. The auditors filed an ADT-4 report with MCA under section 143(12) of the Companies Act.
Corporate Actions and Capital Structure
The company proposed a ₹3,000 crore Qualified Institutions Placement (QIP) to fund expansion into defence and renewable energy sectors, debt repayment, and working capital requirements. The scheme of arrangement with Reliance Velocity Limited was implemented, resulting in adjustments of ₹11,341 crore against various reserves. Out of 12.56 crore warrants allotted in FY25, only 1.25 crore were converted with the remaining lapsing due to non-conversion.
Regulatory and Legal Proceedings
The company faces multiple regulatory challenges: ED provisionally attached 37 properties and marked lien on bank accounts; SEBI issued show cause notices for alleged PFUTP violations; SFIO sought information regarding company affairs; and NCLT admitted the company into corporate insolvency resolution process, though this was subsequently stayed by NCLAT. Mumbai Metro One Private Limited faces severe financial distress with negative net worth of ₹3,956 crore and recovery proceedings initiated by lenders.
Subsidiary Updates and Going Concern
Key subsidiaries showed mixed performance: BSES discoms remained profitable while Mumbai Metro One faced significant challenges. The company maintains going concern assumption based on expected asset monetization, arbitral awards, and regulatory recoveries despite current liabilities exceeding current assets at standalone level.
Governance and Compliance Changes
The board underwent several changes with new appointments including Rajesh Kumar Dhingra as Non-Executive Director and Vijesh Babu Thota as Executive Director. Statutory auditors Chaturvedi & Shah resigned after completing FY26 audit, with Paresh Rakesh & Associates appointed as replacements. The company maintained 99.64% dematerialization of shares despite trading restrictions under ASM framework.
Risk Management and Outlook
The group faces significant financial risks including liquidity constraints with ₹8,166 crore in borrowings, foreign currency exposure of USD 17.34 million assets against USD 21.15 million liabilities, and credit risk with loss allowances of ₹2,343 crore for trade receivables. Management is pursuing asset monetization and balance sheet strengthening initiatives while navigating complex regulatory challenges.