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The company stated that this rating upgrade represents a significant improvement of three notches in the company’s credit profile, achieved after six years at the IND D rating level.
The upgrade also reflects the company’s substantial deleveraging efforts, resulting in net zero debt with banks and financial institutions.
India Ratings and Research stated that the upgrade reflects Reliance Infra’s timely servicing of standalone debt obligations for three consecutive months ended 30 June 2025.
Regarding the guaranteed debt, the company has executed one-time settlement agreements with the lenders of its subsidiaries. These repayments were facilitated by a significant long-term capital infusion through the issuance of warrants amounting to Rs 3,010 crore, of which Rs 750 crore was received in FY25 and Rs 225 crore in 1QFY26, which have eased liquidity pressures, boosting Reliance Infra’s credit profile.
However, the ratings continue to be constrained by the company’s weak financial risk profile and its exposure to risks arising from the ongoing arbitration proceedings, and large payables and contingent liabilities involving both standalone and financially stressed subsidiaries, which remain key monitorable.
Nevertheless, the ratings are supported by the substantial deleveraging of the standalone balance sheet, improved revenue visibility from the engineering and construction (E&C) segment, and the company’s long-standing presence and experience in the infrastructure sector.
The company’s E&C business is likely to turnaround in FY26, driven by management’s expected order flows in new age business.
Moreover, the company issued Rs 3,010 crore of warrants in October 2024 and has board-approved plans to raise Rs 3,000 crore through long-tenored foreign currency convertible bonds (FCCBs) and another Rs 3,000 crorethrough qualified institutional placement (QIP) of equity.
The agency further said that s sustained improvement in the liquidity, along with the material resolution of ongoing arbitrations and a visible recovery in revenue and profitability, with a significant improvement in credit metrics on sustained basis, will be positive from the ratings.
However, any reduction or material delay in the planned fund infusion, or crystallisation of significant claims or arbitration outcomes that adversely impact the liquidity, will be negative from the ratings.
Reliance Infra, a part of the Reliance Group, stands as one of India’s foremost infrastructure conglomerates. The company operates through a diversified network of special purpose vehicles (SPVs) across critical growth sectors such as power, roads, metro rail, airports, and defence. It also provides E&C services and delivers turnkey solutions across power, transportation, and infrastructure projects.
Reliance Infrastructure promoted, Reliance Defence, today announced securing of a significant export order worth Rs 600 crore from Rheinmetall Waffe Munition GmbH, a leading German defence and ammunitions manufacturer.
Reliance Defence's export order is one of the largest in the high-tech ammunition domain to date. This underscores the strength of its recently announced strategic partnership with Rheinmetall. The order represents a key milestone in Reliance Defence's strategy to strengthen its position as a reliable partner in the global defence and munition supply chain, with a particular focus on Europe.
The collaboration highlights the mutual commitment of both parties to long-term cooperation, and to advancing the ‘Atmanirbhar Bharat' and ‘Make in India' initiatives by strengthening indigenous defence manufacturing capabilities. Reliance Defence aims to be amongst top three Defence exporters in the country.
This deal marks one of the largest high-tech ammunition export orders to date from India and underscores the strength of the recently formed strategic partnership between Reliance Defence and Rheinmetall. The order is a key milestone in Reliance Defence’s ambition to become a significant player in the global defence and munitions supply chain, with a particular focus on expanding its footprint in Europe.
The collaboration highlights both companies’ long-term commitment to advancing indigenous defence manufacturing under the ‘Atmanirbhar Bharat’ and ‘Make in India’ initiatives. Reliance Defence has set a target to be among the top three defence exporters in the country.
According to the company, the order reflects the growing capabilities of India's private sector in delivering high-quality defence products that meet rigorous international standards. It also reinforces Reliance Defence’s strategic direction to expand its global presence, identifying Europe as a critical market for future growth.
To support its expanding operations, Reliance Defence will establish an integrated manufacturing facility for explosives, ammunition, and small arms under the Dhirubhai Ambani Defence City (DADC) initiative. Located in the Watad industrial area of Ratnagiri, Maharashtra, the DADC is poised to become the largest greenfield defence sector project ever undertaken by a private company in India. It will serve as a hub for innovation, advanced production, and export-driven growth in the defence industry.
Armin Papperger, CEO of Rheinmetall AG while announcing the strategic partnership said, “this Strategic Partnership of Rheinmetall with Reliance Defence led by Anil Ambani’s Reliance Group illustrates our strong commitment to partner with India under the strong leadership of Prime Minister Modi”.
Anil D. Ambani, founder chairman, Reliance Group said “The strategic partnership with Rheinmetall brings cutting-edge capabilities to India and represents a defining milestone for the country’s private defence manufacturing sector. Guided by the vision of Aatmanirbhar Bharat, as championed by Prime Minister Shri Narendra Modi, our ambition is clear — to position Reliance Defence among the world’s Top 3 defence exporters. Through this, we aim to enable India not only to meet its domestic defence needs with confidence, but also to establish itself as a trusted force in the global defence supply chain.”
Reliance Infrastructure is active in the energy sector, focusing on power distribution in Delhi and power generation. The company also has interests in defence manufacturing and plays a key role in infrastructure development through special purpose vehicles (SPVs), including projects like the Mumbai Metro.
On a consolidated basis, Reliance Infrastructure reported a net profit of Rs 4,387.08 crore in Q4 March 2025 as against net loss of Rs 220.58 crore in Q4 March 2024. Net sales declined 12.33% YoY to Rs 4,108.01 crore in Q4 March 2025.