During Monday’s trading session, shares of one of the largest infrastructure companies engaged in developing infrastructure projects through various Special Purpose Vehicles (SPVs) jumped nearly 2.4 percent on BSE, after a strategic partnership with US-based Coastal Mechanics, to address the Rs. 20,000 crores defence MRO market.
With a market cap of Rs. 16,354 crores, the shares of Reliance Infrastructure Limited hit an intraday high at Rs. 423.5 on BSE, up by around 2.4 percent, as against its previous closing price of Rs. 413.4. The stock has delivered multibagger returns of around 118 percent in one year, and has gained by over 15 percent in the last one month.
What’s the News
According to the latest regulatory filings with the stock exchanges, Reliance Defence, a company backed by Reliance Infrastructure, has entered into a strategic partnership with US-based Coastal Mechanics Inc. (CMI), a leading US Department of Defence authorised contractor. This collaboration aims to tap into India’s Rs. 20,000 crore defence maintenance, repair, overhaul (MRO) and upgrade market opportunity.
Together, Reliance Defence and CMI will focus on providing end-to-end Maintenance, Repair, Overhaul (MRO), upgrade, and lifecycle support solutions for the Indian Armed Forces, targeting a wide range of critical platforms such as 100+ Jaguar fighter aircrafts, 100+ MiG-29 fighter aircrafts, the fleet of Apache attack helicopters, L-70 air defence guns, and other legacy systems.
To support this vision, Reliance Defence and CMI will also set up a joint venture (JV) at MIHAN, Maharashtra. This facility will serve both the Indian market and export markets by providing complete MRO and upgrade services for various air and land defence platforms used by the armed forces.
CMI supplies critical components to the US Air Force and US Army. Its partnership with Reliance Defence brings world-class manufacturing capabilities and global certifications into India’s aerospace ecosystem.
Financials & more
Reliance Infra reported a decline in its revenue from operations, showing a year-on-year fall of around 12 percent from Rs. 4,686 crores in Q4 FY24 to Rs. 4,108 crores in Q4 FY25. In contrast, its net profit increased during the same period from a loss of Rs. 98 crores to a profit of Rs. 8,262 crores.
Reliance Infrastructure Limited is engaged in the business of providing engineering and construction services for power, roads, metro rail and other infrastructure sectors. It is also engaged in the implementation, O&M of several projects in the defence sector and infrastructural areas like metro, toll roads and airports through its SPVs. Further, the company is also a leading utility company with a presence across the value chain of energy businesses.
Written by Shivani Singh
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