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Despite strong Q4 results and becoming debt-free, Reliance Infrastructure share price today fell 4.65% due to profit booking and market volatility.
The company posted a record ₹4,387 crore profit and a 681% jump in EBITDA, marking a strong financial turnaround.
Defence sector entry and partnerships with Rheinmetall, Dassault, and Thales position Reliance Infrastructure for long-term growth.
Reliance Infrastructure (RInfra) has attracted investor attention due to its recent financial turnaround and strategic defence ventures. The company’s stock, however, witnessed a notable 4.65% drop from its previous close of ₹305.45 on May 26, 2025. The stock dip is shocking as the company reported strong fourth-quarter earnings. Reliance Infrastructure share price, as of 11:58 AM, stood at ₹291.25.
The stock’s recent performance has been marked by high volatility. Last week, Reliance Infrastructure shares surged more than 10%. The surge followed an announcement of a major defence partnership. On the other hand, the stock opened at ₹306.90 today, touched an intraday high of ₹308.90, and fell to a low of ₹287.00.
Reliance Infrastructure share price chart shows a decline of 4.40% as of 10.36 AM:
Today's price correction indicates short-term profit booking and cautious market sentiment. Despite the dip, the stock remains significantly above its 52-week low of ₹144.45. Although it still trails its 52-week high of ₹351.00.
Trading activity remains strong, with over 10.3 million shares exchanged, amounting to a total traded value of ₹3,005.47 million. However, the delivery is low at 13.46%. Thus, signaling speculative interest rather than long-term investment accumulation.
The company’s financial performance in Q4 FY25 has been a major highlight. The company reported a consolidated profit after tax of ₹4,387 crore, a sharp reversal from a net loss of ₹3,298 crore in Q3 FY25. Adjusted EBITDA jumped to ₹8,876 crore, a 681% sequential increase. The company’s net worth rose by 44% quarter-on-quarter to ₹14,287 crore by the end of March 2025.
Reliance Infrastructure also announced that it has reduced its net debt from banks and financial institutions to zero. Thus, slashing approximately ₹3,300 crore in debt during FY25. This makes the infrastructure giant debt-free on a standalone basis, a major positive for future growth and creditworthiness.
Valuation indicators suggest RInfra is still significantly undervalued. The trailing twelve-month EPS is ₹124.64, up 428% year-on-year. The stock’s PE ratio is just 2.34, compared to the sector average of 27.51, indicating strong earnings potential at a discounted valuation. Its price-to-book ratio stands at 0.92. The book value per share is ₹317.97, again showing the stock trades below its intrinsic value.
Reliance Infrastructure’s latest partnership with Germany’s Rheinmetall AG has garnered attention. The collaboration aims to establish an ammunition manufacturing facility in Maharashtra. This development follows earlier collaborations with Dassault Aviation and Thales Group. Thus, signaling a shift toward high-value sectors aligned with national priorities.
While the Reliance Infrastructure share price has corrected post-earnings, the overall fundamentals remain strong. With consistent profit growth, a cleaner balance sheet, and new business verticals, the medium-term outlook appears promising.
Analysts recommend a ‘HOLD’ rating for Reliance Infrastructure shares today. A high beta of 1.54 and speculative trading behavior indicate continued price volatility. Investors may find long-term value in the stock. However, they should remain cautious in the short term.
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