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Reliance Power just delivered a rare surprise, and investors are loving it. The stock surged to a fresh 52-week high of Rs 60.3 today (May 30, 2025) after the company posted a profit after tax of Rs 126 crore for Q4 FY25 and unveiled ambitious renewable energy plans.
It’s a dramatic reversal for a company long seen as a laggard. But should investors chase the rally?
Q4 FY25 results snapshot
| Metric | Q4 FY25 | Q4 FY24 | YoY change |
|---|---|---|---|
| Revenue | Rs 1,913 crore | Rs 1,918 crore | - 0.3 per cent |
| Total expenses | Rs 1,998 crore | Rs 2,615 crore | - 24 per cent |
| Net profit | Rs 126 crore | - Rs 398 crore | 132 per cent |
What’s behind the sudden buzz?
- Positive results: After years of being in the red, Reliance Power posted a net profit of Rs 126 crore, compared to a loss of Rs 398 crore in the same quarter last year. While revenue remained flat at Rs 1,913 crore, the real story was one of cost-cutting as expenses dropped 24 per cent year-over-year (YoY).
- Upcoming projects: Recently, Reliance Power announced a Rs 2,000 crore joint venture in Bhutan to build a 500 MW solar plant, marking the largest private FDI in that country’s power sector. It also announced a 350 MW solar project in India, along with a 700 MWh battery energy storage system (BESS), which was bagged by its arm, Reliance NU Energy.
About the company
Part of the Anil Ambani-led Reliance ADAG group, Reliance Power has power generation assets across coal, gas, hydro, and renewables. It owns India’s largest private-sector portfolio of power projects in the development phase.
Here’s how its fundamentals look.
| Metric | Value |
|---|---|
| Market cap | Rs 22,230 crore |
| ROE | - 19.4 per cent |
| ROCE | 1.3 per cent |
| P/E ratio | 7.5 |
| P/B ratio | 1.3 |
| Book value | Rs 40.5 |
| EPS | - Rs 0.4 |
How does Value Research rate Reliance Power?
According to Value Research Online, Reliance Power has a dismal rating of 2/5.
Below is a breakdown of its scores.
- Quality: 1/10
- Growth: 5/10
- Valuation: 2/10
- Momentum: 10/10
The bottom line
Reliance Power’s 52-week high isn’t just hype, it’s riding real developments. But whether this is a breakout or a blip will depend on execution.
The Q4 profit is encouraging, but one quarter doesn’t fix everything. The company still carries a heavy debt load, revenue growth is absent, and past governance concerns haven’t vanished. Green energy bets are promising—but they’ll take time to bear fruit.
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Disclaimer: This is not a stock recommendation. This story was created with the assistance of artificial intelligence and is intended for informational purposes only. Please take it with a pinch of salt and do your own research or consult a financial advisor before making investment decisions.
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