Shares of Reliance Power Ltd jumped 6.88% on June 2 to ₹62.10, extending their remarkable rally of over 100% in the past three months. The stock has become a top gainer and one of the most active counters on NSE today.
What’s behind the sharp turnaround?
The bullish momentum is supported by a strong turnaround in the company’s financials and operational performance.
1. Turnaround in Net Profit:
After posting consecutive losses in FY24, Reliance Power swung to profitability in the September 2024 quarter and has maintained profits for three straight quarters. Net profit for Q4 FY25 stood at ₹125.6 crore, compared to a net loss of ₹397.6 crore in Q4 FY24.
2. Margins and Operational Efficiency:
EBITDA margin improved significantly to 29.8% in Q4 FY25 from just 2.4% a year earlier. EBITDA grew over 11 times YoY to ₹589.8 crore. The company’s Sasan and Rosa plants reported PLFs of 87% and 97%, respectively.
3. Debt Reduction:
Reliance Power slashed its total debt by 50%, from ₹30,456 crore in March 2019 to ₹15,153 crore in March 2025. Its debt-to-equity ratio also improved to 0.88:1 from 1.61:1 a year ago.
4. Positive Operating Cash Flows:
The company has been generating positive operating cash flow, reducing financial risk further.
5. Strategic Renewable Push:
Subsidiary Reliance Nu Suntech signed a 25-year PPA with SECI to build Asia’s largest integrated solar and battery energy storage project (930 MW solar + 465 MW/1860 MWh BESS), with an investment of ₹10,000 crore.
With improving financials, strong operational metrics, zero bank debt, and a pivot to renewable energy, analysts say Reliance Power may continue drawing investor attention.
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