Reliance Infrastructure shares hit the 5% lower circuit at ₹67.45 as of May 22, 2026, during trading on Friday, reflecting investor concerns over the company's latest financial performance. The sharp decline came after the company reported disappointing fourth quarter results for FY26, with the stock hitting the floor amid widespread selling pressure.
The company reported a sharp 79.07% year-on-year decline in consolidated net profit to ₹918.07 crore for the March quarter of FY26 (Q4 FY26), compared with ₹4,387.08 crore recorded in the same quarter a year ago. According to the latest reports, revenue from operations slipped 2.59% YoY to ₹4,001.28 crore for the quarter ended March 31, 2026. During the latest period, the company's total expenses rose 12.25% to ₹5,419.87 crore from ₹4,827.97 crore in the corresponding quarter of FY25. The quarterly income also fell 4.8% sequentially from ₹4,362.61 crore in the December 2025 quarter, indicating continued pressure on revenue generation.
For the entire FY26, the company's net profit dipped to ₹2,900.23 crore from ₹4,937.52 crore recorded in FY25, representing a significant decline in annual performance. According to the exchange filing, revenue from operations fell 13.35% year-on-year to ₹20,440.53 crore in FY26 from ₹23,999.29 crore in the preceding fiscal year. Expenses, which include multiple components, increased to ₹5,419.87 crore in the reporting period from ₹4,827.97 crore logged in the corresponding quarter of FY25.
The cost of power purchased during the said quarter increased significantly to ₹3,285.68 crore from ₹2,739.62 crore in the January-March period of 2024-25, contributing to the overall expense increase. As reported by The Economic Times, this cost escalation was a key factor in the company's profit decline during the quarter. Employee benefit expenses climbed 15.17% to ₹320.95 crore during the quarter, further adding to the company's cost burden.
In a separate development, the company announced the appointment of Vijesh Bahu Thota as chief executive officer with immediate effect, following his cessation as chief financial officer. The board also appointed Asheesh Chaturvedi as the new chief financial officer. Additionally, the board approved seeking shareholders authorisation to raise up to ₹3,000 crore through the issuance of equity shares, equity-linked instruments, or other eligible securities via qualified institutional placement (QIP), follow-on public offer (FPO), or a combination of both. This capital raising initiative comes as the company seeks to strengthen its financial position amid challenging market conditions.
