MUMBAI: The lines are anything but clear at Reliance Communications (RCom), which dialled in a staggering consolidated loss of Rs 8,125 crore for the financial year ended 31 March 2025. With the telecom player still navigating the turbulent waters of insolvency, its latest audited results tell a tale of debt, deferred dreams, and deepening losses.

Under the shadow of ongoing corporate insolvency proceedings since 2019, RCom’s affairs remain under the management of resolution professional Anish Niranjan Nanavaty. In a disclosure to stock exchanges, the company reported a loss of Rs 162 crore from continuing operations and an even steeper Rs 7,963 crore loss from discontinued operations, which include legacy telecom assets like spectrum, towers, and fibre assets still listed at 2018 valuations and now held for sale.

Operating income slumped to Rs 278 crore for the year, against expenses of Rs 440 crore. The auditors, however, weren’t convinced everything adds up.

The audit report issued by Pathak H.D. & Associates LLP is riddled with red flags from non-provisioning of interest on borrowings and foreign exchange fluctuations, to unauthorised asset sales and unresolved willful default allegations. “Had the interest and foreign exchange variation been provided,” the auditors note, “the reported loss would have been higher by Rs 5,110 crore, and the net worth lower by Rs 37,573 crore.”

What’s more, RCom continues to default on statutory dues and has not implemented Ind AS 116 for lease accounting,  a miss that auditors flagged yet again.

Even as a resolution plan remains pending before the NCLT and the Supreme Court battles over spectrum liabilities drag on, RCom maintains it has prepared its books on a ‘going concern’ basis. A claim auditors aren’t entirely buying, given the sustained erosion in net worth, which now stands at negative Rs 69,204 crore.

Amidst it all, resolution efforts have hit pause. Applications to migrate telecom licences remain stuck in litigation. Multiple petitions before the NCLT, TDSAT, and the Supreme Court including the AGR dues dispute continue to cloud the future of RCom and its affiliates.”

As India’s telecom landscape moves ahead with 5G and AI-driven innovations, RCom remains tethered to unresolved past dues and legal quicksand. Whether it can ring in a revival or continue to be stuck in voicemail remains a question only the courts and creditors can answer.