Reliance Infra Surges After India Ratings Upgrades to ‘B/Stable’

Reliance Infrastructure rose ~2.7% to ₹387.55 on July 14 after India Ratings & Research upgraded its credit rating from ‘IND D’ to ‘IND B/Stable/IND A4’, a three-notch jump following six years at default status. This upgrade reflects the company’s successful deleveraging efforts, having achieved net-zero debt with banks and financial institutions.

The rating agency highlighted Reliance Infra’s consistent servicing of standalone debt for three consecutive months ending June 30, 2025, as a key factor. A significant influx of capital via a ₹3,010 crore warrant issuance with ₹750 crore raised in FY 2025 and ₹225 crore in Q1 FY 2026 also eased liquidity pressures .

Despite this positive momentum, India Ratings cautioned that weak financial risk profile, arbitration proceedings and contingent liabilities remain key risks. Long-term outlook will hinge on sustained fund infusion, arbitration resolution and improved revenue visibility, especially from the engineering and construction (E&C) business, expected to turnaround in FY 2026.

Reliance Infra plans further fundraising via foreign currency convertible bonds and a qualified institutional placement, signalling confidence in its recovery path.