Shelling Out Success—Reliance Infra Hits Target with Rheinmetall Order

Image Source: The Economic Times

Reliance Infrastructure Ltd (RLIN.NS) said it had received a record ₹6,000 crore defence export order from Germany's Rheinmetall AG in its defence business, Reliance Defence Ltd. The order is one of the largest private sector defence export orders in Indian history and contributed to Reliance Infra shares 5% up to hit the upper circuit in today's trade.

1. Strategic Partnership and Order Scope

The order is part of a broader strategic ammunition partnership between Rheinmetall AG and Reliance Defence, aimed at large-calibre artillery shells, explosives, and propellants.
The agreement will be executed from a new Greenfield production facility in Ratnagiri, Maharashtra, under the Dhirubhai Ambani Defence City (DADC) venture.
The facility will be able to manufacture as many as 200,000 artillery shells every year, supporting India's vision to become one of the world's major defence exporters.

2. Market Reaction and Financial Impact

Reliance Infrastructure shares increased 5% following the announcement, reaching the NSE's upper circuit limit.
The company's Q4 FY25 numbers also saw a dramatic turnaround with PAT at ₹4,387 crore and EBITDA increasing 681% QoQ, hugely boosting investor sentiment.

3. Broader Defence Ambitions

This is Reliance Defence's third major overseas partnership, after earlier tie-ups with Dassault Aviation and Thales Group.
The company will assist India in meeting its ₹50,000 crore defence export target by 2029, it will target Europe, Southeast Asia, and Latin America.

Sources: Business Today, CNBC TV18, India.com, Reliance Infrastructure