Reliance Power shares jump 7% on Strong Volumes and Positive Triggers

On Wednesday, Reliance Power share price jumped 7.36 percent making a fresh 52 week high price of Rs. 76.49 on NSE. The stock surge is driven by a high trading volumes and a series of positive developments that might have significantly boosted investor confidence. The shares experienced an extended rally, rising around 73 percent in the past month and more than 25 percent in June alone. This strong momentum continued into June 11, with the share price reaching new highs.

One of the key factor behind this rally might relate to the company's recent fourth quarter of FY25 where Reliance Power reported a consolidated net profit of Rs. 126 crore, a significant improvement from a net loss of Rs. 398 crore in the same quarter the previous year. The operational revenue for Q4FY25 stood at Rs. 1,978 crore, slightly down from Rs. 1,997 crore in Q4FY24, but the company managed to reduce its total expenses sharply, which led to a healthy EBITDA of Rs. 590 crore. The EBITDA margin improved to 29.8 percent from just 9.3 percent a year ago. 

For FY25, Reliance Power posted a consolidated net profit of Rs. 2,948 crore, an improvement from a net loss of Rs. 2,068 crore in FY24. This financial position further improved after a Rs. 348.15 crore preference share allotment route capital infusion from Reliance Infrastructure Limited and Basera Home Finance Private Limited, helped the company to strengthen its balance sheet.

On the recent orders, Reliance Power has made substantial strides in the renewable energy segment, particularly in solar power and battery energy storage systems (BESS). Its subsidiary, Reliance NU Suntech, signed a 25-year power purchase agreement (PPA) with the Solar Energy Corporation of India (SECI) for Asia’s largest single-location solar and BESS project. This project include 930 MW of solar capacity along with 465 MW/1,860 MWh of battery storage, which involves an estimated investment of Rs. 10,000 crore. 

Further strengthening its renewable portfolio, Reliance NU Energies, another subsidiary company secured a 350 MW solar project integrated with a 175 MW/700 MWh BESS from SJVN Limited. The project, includes a fixed tariff price for 25 years. This can help to keep power supply intact during peak hours for the state electricity distribution companies. With this addition, the company’s total clean energy pipeline now stands at around 2.4 GW of solar capacity and more than 2.5 GWh of battery storage as per the recent press release.

These new orders and project wins might have played a role in boosting market sentiment. Additionally, Reliance Power obtained interim relief from the Delhi High Court against a debarment order by SECI, which can allow Reliance Power to continue participating in new renewable energy tenders.

Over the past five years, Reliance Power has delivered a multibagger gain of over 2,600 percent, and it has surged 152 percent in the past year, which underscores its transformation from a distressed asset leading to one of the best-performing power stocks in India.

The combination of strong quarterly financial results, debt reduction, equity infusion and major renewable energy order wins, particularly in solar and battery storage projects have not only improved the prospects about the company but it has positioned itself as one of the leading player in India’s clean energy transition.