Reliance Infrastructure posted a ₹4,937 Cr profit in FY25 after a full-blown restructuring fest and ₹1,099 Cr in exceptional gains. Revenue was ₹30,018 Cr — mostly from the power segment. But wait — auditors dropped a massive disclaimer of opinion, and the company’s net worth would be ₹5,312 Cr lower if they had followed proper accounting norms.
🏗️ About the Company
- Business: Power generation, metro rail, toll roads, EPC, defence, even airports (or what’s left of them)
- Promoter: Anil Ambani-led ADA Group
- Famous for: Being the Swiss army knife of infra + loss booking + debt juggling
- Market Cap: ~₹12,000 Cr (as of CMP ₹307.50)
Once dubbed the infra king, now known as the balance sheet with more suspense than a Nolan film.
🧑💼 Key Management
| Name | Designation |
|---|---|
| Vijesh Babu Thota | ED & CFO (freshly promoted) |
| Paresh Rathod | Company Secretary |
| Chaturvedi & Shah LLP | Auditors (gave disclaimer) |
📣 Auditors said: “We didn’t get enough evidence to form an opinion.” So they didn’t. 👀
📊 FY25 Consolidated Financials
| Metric | FY25 | FY24 | Change |
|---|---|---|---|
| Revenue | ₹30,018 Cr | ₹22,782 Cr | 🔼 +31.7% |
| EBITDA (Est.) | ₹10,837 Cr | ₹3,322 Cr | 🚀 +226% |
| Net Profit (Consolidated) | ₹4,937 Cr | ₹(1,609) Cr | 🧨 Huge swing |
| EPS (Basic) | ₹124.64 | ₹(42.66) | 🤯 Turnaround |
| Other Equity | ₹14,034 Cr | ₹8,351 Cr | 🧾 Capitalized |
🎩 Net profit is post ₹1,099 Cr exceptional gains. But don’t celebrate yet.
🧾 Exceptional Items (Highlights)
- ₹3,972 Cr provision reversed for loans to EPC company
- ₹1,099 Cr net exceptional gain in FY25
- ₹5,312 Cr loss adjusted in FY20 — still haunting the books
- ₹843 Cr provision for disputed liabilities
Think of it as Deloitte vs Houdini: Financials Edition.
📉 Audit Disclaimer Bombs
- Couldn’t verify recovery from EPC company assignments
- Loss of ₹5,312 Cr in Reliance Power investment adjusted against capital reserve
- Material uncertainty about going concern for 7+ subsidiaries (metro, toll roads, etc.)
- 57 subsidiaries. 3 associates. 1 joint venture. Half are broke.
Auditors: “Nice balance sheet. Would be a shame if it collapsed.”
🧾 Balance Sheet Deep Dive
| Metric | FY25 | FY24 |
|---|---|---|
| Total Assets | ₹65,841 Cr | ₹59,181 Cr |
| Equity Share Capital | ₹396 Cr | ₹396 Cr |
| Other Equity | ₹14,034 Cr | ₹8,351 Cr |
| Total Borrowings | ₹23,813 Cr | ₹23,340 Cr |
| Assets Held for Sale | ₹1,362 Cr | ₹1,309 Cr |
| Liabilities Held for Sale | ₹1,538 Cr | ₹1,483 Cr |
| Non-Controlling Interest (NCI) | ₹9,383 Cr | ₹5,111 Cr |
🤕 If you remove those accounting acrobatics, net worth drops by ₹5,312 Cr.
🚦 Segment Highlights
| Segment | Revenue (₹ Cr) | Segment Profit (₹ Cr) |
|---|---|---|
| Power | ₹28,121 Cr | ₹10,765 Cr |
| Infra (Toll Roads) | ₹1,372 Cr | ₹20 Cr (😐) |
| EPC/Construction | ₹212 Cr | ₹25 Cr |
✅ Power is back
⚠️ Infra is crawling
❌ EPC is still haunted by ghosts of underbids
🧠 EduInvesting Take
This is not a typical turnaround story. This is a financial thriller where:
- EPC dues = vanished
- ₹5,312 Cr = hidden in capital reserve
- Metro subsidiaries = on ventilator
- Debt = settled using rights over assets valued at ₹0 on books
But hey — the stock is flying. And it just hit ₹307.50 with 8.5% gain today.
So the real question is:
Are you buying RELINFRA’s comeback… or its ghost stories? 👻
📉 Risks & Red Flags
- 🚨 Massive audit disclaimers (both standalone and consolidated)
- 🤯 ₹5,312 Cr worth of creative accounting
- 🏗️ 7 infra SPVs either bankrupt or under arbitration
- 🛑 Regulatory cases still pending with SC & DHC
- 💵 Heavy dependence on one-time exceptional gains
- 🔎 Auditor basically said: “We give up”
🔍 Final Verdict
Reliance Infra is not for the faint-hearted. It’s not just a stock — it’s an epic saga of settlements, arbitrations, NCLT battles, and financial wizardry.
CMP ₹307.50 might rise. Might fall. But one thing’s for sure: this isn’t a stock you sleep on. This is a stock you stay up late reading footnotes about.
Author: Prashant Marathe
Date: May 24, 2025
