Shares of Reliance Infrastructure (RInfra) dropped nearly 10% over two days to ₹342–360 as ED raids linked to Anil Ambani shook investor confidence. Learn why, plus latest Q1 news and key risks.
📉 Reliance Infrastructure Share Price Today: Market Snapshot
- Current Price Range: ₹342–₹360
- Two-Day Fall: Nearly 10%, hitting lower circuit (5%) both sessions.(turn0news22)
- Intraday Volatility: Ended at ₹359.85 on July 25, down ~5% on the day.(turn0search9)
- 52‑Week Range: High ₹423; low ~₹190.(turn0search6)
Investor responses on forums show ~60% recommending selling, revealing widespread caution.(turn0search3)
🧠 What’s Behind the Sharp Drop?
1. Enforcement Directorate (ED) Raids
On July 24, ED carried out raids at over 35 premises linked to Anil Ambani-linked Reliance Group entities, investigating allegations around a ₹3,000 cr Yes Bank loan fraud via shell companies. Both Reliance Infrastructure and Power shares fell about 4–5%.(turn0news24, turn0search14)
Over two trading days, the stocks collapsed ~10%, touching lower circuit limits.(turn0news22, turn0search0)
2. Investor Fear and Sentiment
Although the companies clarified they have no operational or financial linkage to the flagged entities—Anil Ambani is not on board, and transactions pertain to RCOM/RHFL—they couldn’t prevent sentiment-driven volatility.(turn0search2)
🔎 Q1 Earnings & Business Fundamentals
Reliance Infrastructure’s Q1 FY26 results were slated for July 25. Ahead of that, key data includes:
- Posted net profit of ₹4,387 crore in Q4 FY25, marking a turnaround from loss in previous year.(turn0news31)
- Board approved raising up to ₹9,000 crore, including up to ₹6,000 cr via equity instruments & ₹3,000 cr through non-convertible debentures.
- Net zero debt status affirmed; India Ratings upgraded its credit rating to IND B Stable/A4.
- Paid off ₹273 cr debt to Yes Bank on standalone subsidiary loan.(turn0search2)
These moves show structural consolidation and deleveraging, though results disclosure may pressure volatility further into Q1.(turn0search2)
Is the Stock Really Worth Selling?
✅ Supportive Factors
- Strong recovery: Profitable in Q4 FY25 after previous losses.
- Operates in growing segments: defense aerospace, roads, expressways, and aviation infrastructure.
- Ongoing recognition: major deals including partnerships with Dassault and Rheinmetall for defense manufacturing.(turn0search32)
⚠️ Red Flags Persist
- Regulatory overhang: ED probe raises governance concerns despite company denials.
- Fundraising dilution risk: ₹9,000 cr issuance may dilute equity.
- High volatility: stock has fallen ~15% over a month vs. flat benchmark return.(turn0search20)
🙋 FAQs
Q1: Why did Reliance Infra stock fall sharply today?
Due to ED raids linked to Anil Ambani’s group, triggering regulatory fears and top‑corporate link speculation.(turn0news24, turn0search14)
Q2: Are actual operations impacted?
The company maintains the probe concerns older entities like RCOM/RHFL, not RInfra. It asserts no operational or financial impact.(turn0search2)
Q3: How financially healthy is the company?
RInfra returned to net profit in Q4 FY25 (~₹4,387 cr), upgraded to zero‑debt status, and plans major capital raise.(turn0news31, turn0search2)
Q4: Should investors exit or hold?
If you’re wary of regulatory risk, reducing exposure may make sense. Long-term believers in its asset base and de-leveraged future could hold through volatility.
✅ Final Takeaway
Reliance Infrastructure’s share price plunge—dropping nearly 10% to around ₹342–360—is primarily driven by the ED’s high-profile raid tying it to broader Reliance Group scrutiny. While fundamentals suggest a company on turnaround and deleveraging path, investor anxiety around governance and debt issuance remains high. If you are a long-term investor confident in its strategic business shift and infrastructure value, this correction may offer a cautious entry point. Otherwise, short-term risks warrant careful stance and close watching of Q1 earnings and regulatory clarity.
⚠️ Disclaimer
This blog is for informational purposes only and not investment advice. Regulatory and market volatility may rapidly change stock outlook—please consult a SEBI‑registered advisor before investing.
