The Reliance Power Ltd share surged up over 7 per cent on intraday as the stock price and the trading volumes shot up between renewed interest by investors and a spate of strategic moves by the company. It is also one of the most active stocks on the bourse, as it hit a new multi-year high of ₹76.35 on the NSE, where more than ₹46 crore shares changed hands by the end of the day.
This sudden spurt has led analysts to ask the question of whether this is the start of a long-term revival of the Anil Ambani-led enterprise which was once a distressed asset in the Indian power sector.
Financial Turnaround
The latest financial performance of the firm shows a significant change. Reliance Power reported a net profit of ₹126 crore in the quarter ended March 2025 as opposed to a loss of ₹397 crore in the same quarter of the frozen fiscal year. Its regression to profitability is being regarded as a very important step in the restructuring process that the company is currently under.
Strategic Project Awards
The subsidiary of Reliance Power, Reliance NU Suntech, recently won a groundbreaking 25-year power purchase agreement with the Solar Energy Corporation of India (SECI) to build what is being billed as the largest integrated solar and battery energy storage project in Asia. The agreement is worth quite a lot and involves 930 MW of solar power with 1.86 GWh of battery energy storage.
The company project pipeline has also been boosted by other agreements with SJVN Ltd. and Druk Holding & Investments (Bhutan) for similar renewable energy projects.
Fundamental strengthening
On top of the operational victories, the company has also progressed in enhancing its balance sheet. Its debt-to-equity ratio, which was 1.61 in FY24, has now been brought down to 0.88, indicating better financial health. A recent preferential issue has managed to garner around ₹348 crores, which was supported by promoters like Reliance Infrastructure.
In the meantime, a recent court order has removed legal barriers which in the past had prevented Reliance Power from actively responding to new project tenders. The reprieve will present the company with fresh bidding prospects in the Indian green energy market, which is growing rapidly.
Market Outlook
Market analysts are also optimistic with caution. Although the technical indicators, like the Relative Strength Index (RSI), indicate that the stock is overbought and therefore short-term corrections are possible, the long-term sentiment is favourable.
Reliance Power has shown an immense reversion in its performance and in the eyes of the investors. Provided execution is good, this rally could very easily be maintained, said an analyst with a major domestic broking house.
The stock has gained more than 7,000 per cent since March 2020, and the stock is no longer a penny stock but a major gainer in the power sector.
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