Reliance communications is battling a major crisis amid debt of 320.49 billion rupees ($7.11 billion) incurred, owing to its failure to book profit against its third generation mobile services and further, for expansion services.

To the shock of every avid analyst, the business unit of Reliance Anil Dhirubhai Ambani Group reported an unexpected profit of 1.69 billion rupees, a drop of staggering 86% from January to March this year.

Though the stock opened on Tuesday at better than expected value, it moved up by 2.2% at 89.40 rupees, amid rumors that company might be pondering over sale. Even the Company confirmed the news in a press release before the Mumbai exchange opened, claiming that it had been skimming through “formal indicative offers” to sell a major stake in telecom tower unit Reliance Infratel Ltd to reduce the debt.

Amid the controversy surrounding the sale of 2G spectrum, three of its executives are currently in judicial custody and further, the added debt pressure, moved the stocks to a 52-week low of 74.65 rupees in March, indicating a potential future slump.

Meanwhile, Brokerage India Infoline has lowered its outlook on the earning for this fiscal year through March, as well as the next year through March 2013, while Angel Broking would be revising its projection.