Reliance Infrastructure Q2 FY2025-26 Highlights
Reliance Infrastructure Limited (RInfra), one of India’s leading private sector infrastructure companies, announced its financial results for the second quarter of FY2025-26 (Q2 FY26), showcasing stable revenue performance but a sharp decline in profit after tax (PAT) compared to last year.
The company reported consolidated revenue from operations of ₹6,234.91 crore, against ₹7,258.49 crore in Q2 FY2024-25, reflecting a year-on-year (YoY) decline of around 14%. However, compared to the ₹5,907.82 crore reported in Q1 FY2025-26, the revenue showed a sequential growth of approximately 5.5%.
Consolidated PAT stood at ₹1,911 crore, significantly lower than ₹4,082 crore in the same quarter of the previous fiscal year. The decline primarily stems from reduced extraordinary gains that benefited the previous year and changes in the company’s non-operational income profile.
Despite the profit dip, the company’s EBITDA (earnings before interest, taxes, depreciation, and amortization) increased to ₹2,265 crore, signaling improved operational efficiency and stronger cash flows.
📊 Comparison Table: Reliance Infrastructure Quarterly Performance
| Metric (₹ crore) | Q2 FY2025-26 (Jul–Sep 2025) | Q1 FY2025-26 (Apr–Jun 2025) | Q2 FY2024-25 (Jul–Sep 2024) |
|---|---|---|---|
| Revenue from Operations | 6,234.91 | 5,907.82 | 7,258.49 |
| Total Income | 6,309.48 | 6,035.59 | 7,345.96 |
| Net Profit (PAT) | 1,911.00 | 59.84 | 4,082.00 |
| EBITDA | ~2,265 | ~1,840 | ~1,123 |
| Net Worth (Consolidated) | ₹16,921 crore | ₹16,500 crore | ₹15,862 crore |
| Board Resolution | Approved raising up to US$600 million via FCCBs | — | — |
Source: Reliance Infrastructure Company Filings, NSE Disclosures, ETMarkets, and Outlook Business reports (Q2 FY2025-26).
Detailed Analysis: Understanding Q2 FY2025-26 Performance
Reliance Infrastructure’s Q2 FY26 numbers reflect a mixed performance—operational efficiency improved, but headline profit was affected by reduced non-recurring gains and softer top-line growth.
The company’s consolidated revenue declined year-on-year due to lower EPC project execution and subdued performance in the power segment, particularly in the Mumbai distribution business and EPC arm. However, EBITDA surged by over 100% YoY, highlighting improved cost management and efficiency across segments.
In Q1 FY26, the company posted a modest PAT of ₹59.84 crore. Sequentially, Q2 FY26 marks a dramatic recovery in profitability, mainly due to better performance in the generation, transmission, and infrastructure development divisions.
Management Commentary and Key Announcements
Reliance Infrastructure’s management has outlined a forward-looking strategy focusing on balance sheet strengthening, operational efficiency, and renewable energy growth.
1️⃣ Fundraising Plan – FCCB Issue Worth $600 Million
The company’s Board of Directors has approved an enabling resolution to raise up to US$600 million through Foreign Currency Convertible Bonds (FCCBs). This move aims to refinance existing debt and fund new growth initiatives in power, EPC, and infrastructure development projects.
Management stated that this capital infusion will improve liquidity, enhance project execution capability, and reduce the overall debt cost structure.
“The proposed FCCB issue underscores our focus on long-term growth, deleveraging, and accelerating value creation in our power and infrastructure businesses,” the company said in its post-results note.
2️⃣ EBITDA Growth Despite Revenue Dip
The EBITDA of ₹2,265 crore in Q2 FY26 reflects improved operational efficiencies, project management optimization, and cost rationalization. The company’s improved cash flows from operations and strategic debt repayment also strengthened its balance sheet.
3️⃣ Strengthening Net Worth & Asset Base
As of September 30, 2025, Reliance Infrastructure’s consolidated net worth stood at ₹16,921 crore, up from ₹16,500 crore in Q1 FY26. Total assets reached approximately ₹69,709 crore, showcasing a stronger financial position and increased project execution capacity.
Segment-Wise Performance Overview
⚡ Power Business (Generation & Distribution)
Reliance Infrastructure’s power business remains its backbone, contributing over 70% of consolidated revenue. The company operates generation plants in Dahanu and Delhi, alongside large distribution networks in Mumbai, Delhi, and surrounding areas.
Merchant Power Sales: Merchant power sales improved, supported by higher plant load factor (PLF) and favourable market prices.
Distribution: The regulated distribution business maintained stability, ensuring consistent cash flows.
Future Outlook: Management expects growth in renewable and hybrid energy solutions to drive long-term value.
🏗️ EPC and Infrastructure Division
The EPC business faced moderate slowdown due to delayed government project clearances, but order book visibility remains strong. Execution is expected to accelerate in H2 FY26, driven by increased infrastructure spending and new road and metro projects.
Order Book: Estimated at over ₹25,000 crore, with new project wins in power transmission and roads.
Profitability: Margins improved marginally, aided by better cost control and revised contract terms.
🌱 Renewable Energy and Green Transition
Reliance Infrastructure is expanding into solar and wind power generation, with several new projects in the bidding stage. The company plans to use a portion of the upcoming FCCB proceeds to fund renewable expansion and storage infrastructure.
Comparison: Q2 FY26 vs Q2 FY25 vs Q1 FY26
| Parameter | Q2 FY26 vs Q2 FY25 (YoY) | Q2 FY26 vs Q1 FY26 (QoQ) |
|---|---|---|
| Revenue Growth | ▼ 14.1% decline | ▲ 5.5% growth |
| PAT Growth | ▼ 53% decline | ▲ 30x jump |
| EBITDA Margin | ▲ Improved from 15% to 20% | ▲ Sequential rise |
| Debt Position | Stable | Improving via repayments |
| Cash Flow | Positive | Strengthened |
Management Guidance for H2 FY2025-26
Reliance Infrastructure’s management expressed cautious optimism for the second half of FY26. The company expects to maintain its EBITDA momentum while focusing on project execution and debt reduction.
Key targets for H2 FY26:
Revenue growth: Mid-to-high single-digit growth expected in H2.
EBITDA margin: Sustained between 18–20%.
Capex: Focus on renewable and transmission projects.
Debt reduction: Targeting debt-to-equity ratio below 1.2x.
Order inflow: Targeting ₹10,000–₹12,000 crore new orders by March 2026.
Analyst and Market Sentiment
Market analysts remain cautiously positive on Reliance Infrastructure’s outlook. While the YoY profit dip raised questions about near-term earnings visibility, the company’s improved operational EBITDA and fund-raising plans have boosted investor confidence.
Brokerage houses have pointed out:
“Reliance Infrastructure’s Q2 FY26 results indicate operational recovery and improved financial discipline. The FCCB plan adds capital flexibility for growth in renewables and infrastructure.”
The company’s stock price reacted positively after the results announcement, reflecting confidence in the management’s strategy to strengthen financials and expand future-ready infrastructure projects.
Key Takeaways for Investors
Profit Decline Reflects High Base Effect: Q2 FY25 had exceptional one-time gains, making the YoY comparison less alarming.
Operational Efficiency Rising: Higher EBITDA suggests cost optimization across verticals.
Strong Balance Sheet: Net worth of ₹16,921 crore and stable leverage position.
Capital Raising Plan: $600 million FCCB issuance to fund growth, refinance debt, and reduce interest costs.
H2 Outlook: Renewed focus on green energy, project completion, and debt control.
Conclusion: Reliance Infrastructure on the Path to Revival
Reliance Infrastructure’s Q2 FY2025-26 performance underscores the company’s steady transition toward sustainable growth despite short-term profit fluctuations. With revenue at ₹6,234.91 crore and PAT at ₹1,911 crore, the company’s focus on operational efficiency, cost control, and debt optimization continues to strengthen its foundation.
The upcoming $600 million FCCB issue marks a significant step in its strategic roadmap — enabling expansion into renewables, EPC projects, and next-gen infrastructure development. As H2 FY26 unfolds, RInfra’s performance will hinge on execution speed, debt reduction, and the timely realization of its project pipeline.
For investors, Reliance Infrastructure remains a long-term infrastructure play, balancing stability in regulated businesses with upside potential in green and EPC growth segments.
